Hot Job Spotlight: What's the Market Rate for a Software Developer?
Software Development is an in-demand career with a tight talent supply nationally. It is vital to understand the compensation requirements in this field, including other factors potential hires seek, such as flexibility, career advancement and other benefits.
Software Developer Overview
The average software developer has a bachelor's degree in computer science or a related field of study. Their skill sets include data analysis, software engineering, troubleshooting, system testing, and the ability to write code in various computer languages. In addition to program development, they are responsible for updating and maintaining computer code, fixing bugs, adding new features, and improving the functionality of products. Developers work in various industries, and continuous updates to technology and changing trends create ongoing challenges for this role. To be successful, developers must stay current on the latest programming languages, other technology skill sets and understand the specific industry they are serving.
Analyzing Regional Salary Trends and Available Talent
Using Dallas-Fort Worth as a model, the median salary for software developers with 2 to 4 years of experience is $104K, 2.1% higher than the national average, and the recommended competitive salary to land new talent and retain existing talent is $109,538. It is important to note that the specific industry the developer serves impacts their overall salary. Trends within a particular sector such as Retail, Finance, B2B, Education, Logistics, Warehousing, Travel or Consumer Entertainment will also affect compensation.
The talent supply will continue to be tight in this region for the next five years, so it is vital that your salary offers stay on pace or ahead of the curve. Currently, there is a moderate talent pool shortage in this field in Dallas-Fort Worth. Data trends forecast wages will rise 1.5% by the end of 2022. Download a salary report that includes the DFW numbers as well as a look at salary comps for six other cities where the demand is high for this job.
Other Potential Talent Sources
Looking beyond the immediate region in this field may accelerate recruiting efforts. Targeting states with lower salaries and offering relocation packages or fully remote work options is one strategy to bring new talent in where there is a short supply. Additionally, targeting universities that offer degrees relevant to software development is ideal for bringing new talent into your organization.
Understanding Compensation Demands
To attract top talent, you need to understand trends and forecasts within your industry and region and use accurate and current salary data that adjusts for the specifics of experience, education, industry and company size. Talent intelligence software like LaborIQ® can save you time and effort in calculating competitive compensation scenarios to effectively recruit software developers.
Additionally, with the tight current supply of available software developers, a total compensation package offering flexible hours, the ability to work remotely and generous benefits packages that may include a starting bonus can help entice them away from other organizations. As the market continues to be highly competitive, meet your recruiting goals with a data-backed attractive compensation offer.