Tech company CFOs looking to relocate operations or open a facility in a new area can get a glimpse of what their payroll costs would be in a survey just released on typical tech salaries in key markets in each state.
Silicon Valley cities are among the most expensive for hiring tech talent, as you would expect, so as a CFO, you might be interested in cities where tech talent and lower costs converge. Among up-and-coming tech cities where you can get more talent for your payroll dollar are Baltimore and surrounding areas and Bridgeport, Conn., and other towns nearby.
The list of the top 100 cities found that, nationwide, tech salaries are an average of 66% higher than other occupations, and that the highest percentage of tech salary growth was in El Paso, Texas, where tech wages grew by 11.09% between 2017 and 2018 — from $65,000 to $73,000. The average salary for other El Paso jobs is $39,000.
Tech continues to be a lucrative profession in the United States for those who have cemented a place in the workforce with their skills. A key finding in the survey is that cities not associated with tech are becoming places worth looking at for locating operations as they attract more tech companies and more tech talent.
For CFOs who are looking at expansion or relocation, the survey results provide a starting point for researching locations.
The list takes cost of living into account, and also tracks the change in salary margins from 2017 to 2019. In certain cities — most obviously New York City and San Francisco — paying rent in a standard two-bedroom or even studio apartment can prove to be a big expense for even relatively well-paid tech workers.
CFOs, in turn, must consider these factors as potentially limiting for employees just starting out in their careers, as moving a company across state lines requires the due diligence to ensure that all members of the workforce are able to maintain their employment status.
The top 8% of the list includes cities where tech workers make north of $100,000; the remainder are somewhere between $99,000 and just shy of $64,000. Deltona-Daytona Beach-Ormond Beach, Florida is the last metro area to round out the 100 most expensive tech labor markets.
Potentially unexpected metropolitan cities to make the top Ten of Business.org’s list are Baltimore-Columbia-Towson, Maryland, Bridgeport-Stamford-Norwalk, Connecticut, and Hartford-West Hartford-East Hartford, Connecticut, each of which are more often considered commuter cities to larger metropolitan city areas than standalone business destinations.