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Are tech talent salaries going down?
Tech talent salaries are declining as companies downsize their workforce to rely more on automation. Learn how to mitigate salary declines in tech industry
In 2021 and 2022, companies over-hired developers. This led to an increase in supply, as more people were competing for the same number of jobs. Unfortunately, many of these jobs were in the virtual world, which did not take off as expected. Consequently, numerous companies resorted to downsizing their workforce, particularly targeting developers, thus exacerbating the surplus of available talent.
At the same time, automation is also driving down salaries. As AI and other technologies become more sophisticated, they are able to automate tasks that were once done by humans. This means that there is less need for developers, which is putting downward pressure on salaries.
Furthermore, the availability of remote work positions is dwindling. This shift is due to companies recognizing that they can outsource development work to other countries, reducing the need to hire as many local developers. As a result, this trend is contributing to the downward trend in salaries.
As a result of all of these factors, salaries for developers are going down in 2023. Here are some of the numbers:
- A senior developer in Latin America can expect to earn around $55,000 per year.
- A mid-level developer can expect to earn around $3-4.50 per hour.
- In the United States, salaries are also going down. A Senior Developer Salary is expected to be around $110,000-170,000 per year.
What can you do to protect yourself from salary declines?
If you are a developer, there are a few things you can do to protect yourself:
- Learn new skills. The tech industry is constantly changing, so it's important to stay up-to-date on the latest trends. This will help you stay marketable and in demand.
- Build relationships with potential employers. Networking is key in any industry, but it's especially important in the tech industry. Get to know people in your field and let them know what you're looking for.
- Be prepared to negotiate. Don't be afraid to ask for what you're worth. If you're confident in your skills, you should be able to negotiate a salary that reflects your worth.
How can companies mitigate the need for higher salary expenditures?
If you are a company, there are a few things you can do:
- Consider using no-code or low-code solutions. These solutions allow you to build software without having to hire a developer. This can save you a lot of money in the long run.
- Focus on hiring developers with the right skills. Don't just hire the cheapest developer you can find. Make sure they have the skills and experience you need. Be prepared to negotiate.
- Don't be afraid to offer a lower salary if you believe the developer is not worth the higher salary.
The salary market for developers is changing. It's important to be aware of these changes so that you can protect yourself from salary declines.