Dive Brief:
- Silicon Valley-based tech companies reign in the salary competition, and it's hard for other sectors to keep up. For example, Google's base salary is about $136,000, and it offers an annual bonus of more than $32,000 and a sign-on bonus of about $27,000, according to a report by Paysa.
- Salesforce had the highest annual bonus of nearly $40,000, but employee tenures capped at about 23 months. The average signing bonus for Amazon was $41,340, but employees only stayed for about two years.
- Microsoft, however, retained employees for more than 3.5 years and has an annual bonus of about $23,000. HPE also retained employees for the about the same time frame but only offered an annual bonus of $10,756.
Dive Insight:
For some tech companies, holding onto employees is just as important as attracting new talent. Typically, the average tenure for legacy tech companies like HP and IBM is six to seven years. However, younger counterparts like Google and Amazon hold onto employees for only about two years.
The same is true for career experience. Older companies are more inclined to hire those with more experience in the industry. Still, salary demands are crushing CIOs and their bottom line.
More than 40% of CIOs said salary demands hinder hiring new talent. Because computer science professionals expect salaries of about $92,300, some organizations cannot afford to maintain a fiscal appeal.
The federal government is one of many sectors that struggles with attracting a skilled tech workforce when Silicon Valley companies' salaries typically begin with six-digits. To compensate for its lackluster financial allure, a program to borrow talent from Silicon Valley could help the government's technology stack flourish.
