Tech companies and start-ups are fiercely competing for talent, not only with the business across the street, but also with those in other tech hubs. Tech firms in metro areas outside Silicon Valley, where the nominal average annual salary of tech workers is $120,000, may feel they can't compete.
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Get Your Report Now! However, nominal salaries are only one part of the compensation equation. Factors such as cost of living and local amenities are significant factors in determining effective compensation.
A new salary survey in the February issue of TriNet SMBeat finds that to attract top talent, employers outside of expensive coastal cities would benefit from highlighting their cities' affordable cost of living to potential recruits. The cost of living calculation is based on the proportion of costs households spend on housing, grocery items, utilities, transportation, healthcare, and miscellaneous goods and services.
This metric can help an employer inform location and expansion decisions that best suit their needs for talent and affordability.
The TriNet SMBeat survey ranks these seven major tech hubs by cost of living adjusted average salaries. Data is sourced from TriNet's more than 8,900 clients and approximately 230,000 worksite employees.
- Austin: $105,000
- Atlanta: $103,000
- Denver/Boulder: $98,000
- Boston: $79,000
- Silicon Valley: $78,000
- Los Angeles: $70,000
- New York: $56,000
In addition to the findings on cost of living adjusted salaries, the report showed the
tech sector experienced another strong month with a 1.89 percent net job growth. After a long
absence, back on top in February was Boston, leading the tech sector with 3.06 percent net job
growth. It surpassed New York, Silicon Valley, Los Angeles, and Denver-Boulder.
To learn more, visit http://www.trinet.com.