Software Engineer Salaries Are on the Rise — an Analysis Report

By James White Thursday, February 18, 2021

One of the industries resisting the negative economic impact induced by the global pandemic is that of the technology sector. Software companies that provide digital services, whether it be for remote work, entertainment, or shopping, have proven to be resilient amid a global crisis. Behind these companies are droves of software engineers hard at work solving our technological problems and providing access to these digital services. According to a joint report by hiring companies Hired and Vettery, average salaries for software engineers are on the rise.

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Trends in the Software Engineer Hiring Marketplace

"Demand for software engineers and their skill set continued to grow despite the massive economic downturn amid the pandemic and one of the most difficult job markets in US history,” Vettery CEO Josh Brenner said. “As many companies will pick up their hiring efforts again this year, they will have to compete even more for top engineering talent.”

The hiring businesses reported that software engineer salaries grew by “5% in the San Francisco Bay Area, 3% in New York, 7% in Toronto, and 6% in London.” It was also discovered that software engineers working remotely were paid salaries 2% to 5% greater than local offers. Furthermore, the report found that back-end, full-stack, and front-end engineers were among the most sought-after roles by tech businesses and companies. These positions comprised 58%, 57%, and 30% of all interview requests, respectively.

The report conducted by the hiring businesses also identified which skill sets were in the highest demand by companies seeking software engineers. Working knowledge of Google Cloud, Amazon Web Services, React.js, and Redux.js was found to increase the number of interview requests received by potential candidates. Businesses frequently requested skills in Kubernetes and Docker, and the most popular coding languages with employers were Go and Scala.

Software Development Job Market Outlook

According to the US Bureau of Labor Statistics, the market for software developers and engineers is expected to grow by 22% from 2019 to 2029. This growth echoes the demand from businesses and companies found in the report from Hired and Vettery.

Last year saw a massive increase in remote work availability across many industries, including software engineering businesses. The report from the hiring marketplaces corroborates this increase, finding that 34% of software development roles out of Denver were remote opportunities. Respectively, 6% and 9% of positions offered in London and Toronto were remote.

“With 83% of software engineers saying they seek ‘new challenges and continuous learning,’ companies will also need to offer things like remote work flexibility and professional development opportunities to attract and retain top talent,” Brenner said.

About the Author

Headshot for author James White

James White is a Michigan State University graduate with a B.S. in Environmental Biology. He is interested in reporting emerging trends in technology, especially with regard to alternative energy and environmental conservation.

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