The Latest in Tech Salaries

Information technology (IT) remains a rapidly growing industry, and the demand for skilled IT professionals is at an all-time high.

The United States is home to some of the largest and most successful IT companies in the world, such as Alphabet’s Google, Apple and Microsoft Corp. Regardless of the asset size of a financial institution, they may find themselves competing with large companies for top tier IT talent capable of implementing evolving technology strategies.

From 2000-20, many IT salaries moved year over year twice as fast as positions in the market at large, making it difficult to stay competitive to the market and requiring higher than normal salary increases to keep up.

According to the 2022, BalancedComp Salary Survey, IT business analyst, chief information officer (CIO), help desk specialist and systems administrators were four of the 30 fastest growing salaries last year with salaries increasing from 7% to 17%.

Total mean compensation for all IT professionals increased from $95,628 to $98,480, according to recent Janco studies and data. However, this figure varies greatly depending on the job title, location, experience level and industry. For example, a software engineer in Silicon Valley can earn well over $180,000 per year, while a help desk technician in a smaller town may earn closer to $40,000.

The CIO is one of the highest paying positions in the IT industry, with an average salary of $178,000 per year. This is followed closely by IT directors, who earn an average salary of $130,000. These salaries can be pushed much higher when senior software developers who report to them are being offered $150,000 to $220,000 to switch employers.

Other high paying positions in the IT industry include data scientists, software architects and cybersecurity experts. Demand has remained highest for IT professionals who support security, blockchain, remote work and e-commerce.

Location is a significant factor when it comes to IT salaries. The highest paying cities for IT professionals are typically in California, particularly in the Silicon Valley area. Other high paying cities include Seattle, New York, Boston, Boulder and Austin. However, the cost of living in these cities is also high, so it’s important to take this into account when considering overall salary.

Experience level also plays a role in IT salaries, with more experienced professionals earning significantly more than entry-level employees. For example, a software engineer with five years of experience can earn over $150,000 per year, while a software engineer with less than one year of experience may earn closer to $60,000.

The industry also affects an IT professional’s salary. Salary levels in mid-sized enterprises are rising faster than in large enterprises according to the midyear Janco survey. The highest paying industries for IT professionals include finance, healthcare and technology. However, recruiting is likely to take place from all industries which can require you to modify a salary structure built for a bank.

In recent years, there has been a growing demand for cybersecurity professionals, and this trend is expected to continue. As more companies store sensitive data online, there is an increased need for professionals who can protect that data from cyber attacks. As a result, cybersecurity professionals can earn significantly higher salaries than other IT professionals, with an average salary ranging from $120,000 to $170,000 per year. Once a bank is past $1 billion in assets, this professional often is given one or two exempt level information security analysts to support their efforts.

Often, a new hire is paid competitively when they first accept employment, but the average salary increase at a bank seldom keeps pace with the market. These employees are very team-oriented and liking their coworkers is as important to them as liking the software and applications they work with. But falling behind in compensation is likely to drive them to visit one of the many social media sites they frequent and will lead to another job offer.

IT salaries in the United States vary greatly depending on various factors such as job title, location, experience level and industry. But IT salaries are moving faster than other jobs, and the demand for skilled IT professionals is growing rapidly. As technology continues to advance, IT professionals will play a crucial role in driving innovation and growth in various industries. Failure to pay competitively will be the worst money ever saved and is likely to lead to higher turnover.