TriNet issues cost of living adjusted salary survey for top U.S. tech hubs
New York’s high cost of living saps the purchasing power of tech workers’ salaries
SAN LEANDRO, Calif. – MARCH 6, 2014 – TriNet, a leading cloud-based provider of HR services, today announced the findings of the February issue of its TriNet SMBeat. February’s report features an in-depth analysis of cost of living adjusted salaries for tech workers throughout the United States. According to the report, Austin area tech workers, on a cost of living adjusted basis, have the highest effective annual average salary at $105,000. The SMBeat report is a monthly analysis of small business employment and human capital economic indicators.
Tech companies and startups 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. 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.
The report 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 theproportion 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. Employees should also factor in location when evaluating the “sticker price” of salary figures. This will help them better understand how far a paycheck will go for them and their families.
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% net job growth. After a long absence, back on top in February was Boston leading the tech sector with 3.06% net job growth. It surpassed New York, Silicon Valley, Los Angeles and Denver-Boulder.
The report also showed that the Life Science sector was the fastest growing vertical in February with 2.16% net job growth, a significant rebound from -0.62% in January. Los Angeles led this vertical with 2.11% net job growth, followed by the San Francisco Bay area with 1.45% net job growth.
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