A new study was published by the data science team at Hired. In their research, they found out that San Francisco is not the best place for a software engineer. In fact, they are at the bottom of the pile when it comes to having money inside their pockets.
High Salary, But Costly Living
Based on 280,000 interview requests and job offers provided by more than 5,000 companies to 4,500 job seekers on Hired's platform, it showed that the average salary of a software engineer in the Bay Area is $134,000. Take Austin for example, the average salary for a software engineer on Hired is $110k, which is equivalent to a $198k salary for a software engineer in San Francisco. Aside from earning the highest in the U.S., software engineers in San Francisco also earns the most across the globe.
However, despite being the highest, there is another factor to take into consideration - expenses. The high-paying salary that software engineers in San Francisco get won't mean much when compared to jaw-dropping rents and other soaring expenses.
In fact, software engineers in San Francisco are considered to be at the bottom of the pile when it comes to how much money they can have in their pockets. Even the most poorly paid software engineer in Melbourne, Australia, which only earns $83,000, is doing better than the software engineers in the Bay Area. The $83,000 figure is equivalent to $150,000.
Earnings On Other Countries
In case you're wondering as to how much other places are earning, here is a list. Please do note that the salary pay is adjusted for the cost of living in San Francisco:
Seattle ($180k), Toronto ($149k), Chicago ($169k), Denver ($181k), Boston ($156k), N.Y. ($133k), Washington D.C. ($141k), Los Angeles ($174k), San Diego ($179k), and Austin ($198k).
Singapore ($90k), London ($104k), Paris ($98k), Sydney ($121k) and Melbourne ($150k)
The study also focused on what other tech jobs are earning across 16 major cities. They found out that a person's race, age, religion or sexual orientation affects how much salary they ask for and how much they get.
Wage Gap Race
For black software developers with the same level of experience as their white peers, they are on average asking for and receiving $115,000 when applying to engineering roles. On the other hand, white software developers are asking and receiving $125,000. As for the Latino and Asian software developers, they are asking and receiving around $120,000 to $125,500 on average.
Wage Gap Age
In regards to age, younger candidates tend to get paid less than older candidates. Specifically, candidates who are aged 25 to 30 years old earn $102,000 on average, whereas 45-year-old candidates make around $140,000. However, the figure goes down, because candidates between the ages of 50 to 60 years old see their salary knocked down to $130,000.
As to why younger people are paid less, Jessica Kirkpatrick, Hired's lead data scientist, say that it could be because part of the older employees were trained and specialized in older technologies. She also added that this is also seen on other trends.
Black Software Developers Are In Demand
According to the same study, companies seem to be getting the memo about the power of diversity - well, half of it. Based on their study, black developers are on high demand on the platform compared to white, Latino and Asian developers.