Expect to Pay More for Top Tech Roles in 2025 - nextSource

Today, the demand for tech professionals greatly outpaces the supply and the Department of Labor projects that the gap will widen in the coming decade. The U.S. Bureau of Labor Statistics (BLS) projects a 3% growth among all U.S. occupations from 2022 to 2032. In contrast, computer and information technology jobs are expected to see a 14% projected job growth, with data scientists, data engineers, information security analysts, and software developers experiencing growth rates of 22-32%.  

With high demand comes high wages. Median average salaries for tech positions are more than double the national median for all occupations. Tech professionals receive a median annual salary of more than $104,000, significantly higher than the median annual salary for all jobs, which reached $48,060 in May 2023.  Median wages for specialty tech roles exceed $120,000 per year. 

Virtually every industry is seeking specialized tech skills, with high demand driven by an expansion of automation applications and an increase in cyber threats.  However, the increased application of Artificial Intelligence (AI) is redefining how many companies operate, including tech companies. Today, a relatively small share of businesses say they use AI to produce goods and services. However, across sectors a higher percentage of businesses report that they plan to adopt AI in the next six months. Today, 73% of U.S. companies use AI in some manner. PwC’s 2023 emerging technology survey estimates that 54% of companies today use Generative AI tools like ChatGPT. International Data Corporation projects that AI will make up a significant share of core IT spending, with the world’s largest companies to devote over 40% of their IT spend to AI. As AI becomes more pervasive, the demand for data scientists and data engineers will explode, increasing the scarcity of that talent and, consequently, the rates paid for these specialized skills. 

Rising salaries for specialized skills can be challenging for organizations, but there are several strategies for better managing the rising costs while still attracting and retaining top talent.  

1. Consider outsourcing certain data science tasks or hiring freelance data scientists for specific projects. By using independent contractors or workers provided by staffing agencies companies can increase flexibility and reduce long-term salary commitments.    
2. Focus on hiring junior data scientists, pairing them with external tech experts engaged for specific projects. This provides “on the job” training while providing growth opportunities within the company.  
3. Utilize automation tools and platforms for routine tasks. 
4. Provide “preferred employer” options that align with the professional’s overall career objectives. This includes flexible working hours, remote work options, and professional development opportunities. 
5. Regularly benchmark salaries against industry standards to ensure you are offering competitive but not excessive compensation. 

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