Only about 40% of software engineers will do any remote work.

TechTarget

Many software engineers will only take a job if remote work is an option and will likely quit if their employer mandates a return to the office, according to Hired's annual software engineering study. Its finding suggests that employers requiring a full-time or hybrid return to office will hurt recruiting efforts. 

"Employers open to remote workers "are able to get better-quality talent that's a better fit for the organization," said Josh Brenner, CEO of Hired, a job-matching platform for technology jobs. That's happening despite the attention given to companies that are starting to move people back to the office, he said. 

Brenner said they see evidence of employers broadening their efforts to hire from underrepresented groups in technology occupations, such as Black and Hispanic employees. Markets such as Tampa, Fla.; Atlanta; and Columbus, Ohio, saw employers making the highest requests to interview underrepresented engineering talent. AI experts see diversity in hiring as important to addressing AI bias. 

Technology companies have faced criticism for failing to hire more women and Black candidates for technical roles. Some companies, such as Salesforce, have argued that remote work could help address the industry's lack of diversity. By hiring remotely, companies interested in building a diverse team "are able to cast a wider net," Brenner said. Last fall, the U.S. Census Bureau reported that the number of people working from home tripled in just two years, from 5.7% of the workforce in 2019, or 9 million people, to nearly 18% in 2021, or almost 28 million people. 

The New York City-based Hired operates a platform for technology workers that pre-assesses candidates through tests and connects them with employers. Its "2023 State of Software Engineers" report, released Tuesday, is based on interview requests and salary data from 68,500 software engineering candidates and a survey of more than 1,300 software engineers and 120 talent professionals.

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Cision PR Newswire

Hired, the leading AI-driven hiring marketplace matching tech and sales talent with top companies, today released its annual report, Big Transitions in the Tech Industry: 

Hired's 2023 State of Software Engineers. Key findings include that the San Francisco Bay Area paid the highest yearly average salaries in 2022 for both local and remote engineering roles, at $180K and $176K respectively. Philadelphia saw the largest average year-over-year increase in salaries for both local and remote roles (12% and 7%, respectively). 

Hired also found that remote roles commanded higher salaries than local roles, especially in smaller markets. Software engineers received a higher proportion of interview requests (IVRs) for remote roles than for local ones in 2022 across every market, except London. 

At the end of December 2022, remote roles in every market except London paid more than local roles. 2022 saw a wave of high-profile layoffs in the tech industry with more than 150,000 tech workers losing their jobs. 

The 2022 layoff period (defined by Hired to be between May to December 2022) shifted employer demand to candidates with more years of experience. 72% of interview requests went to candidates with six or more years of experience by December 2022, up from 64% in January 2022. Senior talent also saw higher salary increases than junior talent from 2021 to 2022. 

During the 2022 layoff period, local salaries also showed more volatility while remote salaries flattened. The SF Bay Area had the highest salaries during the layoff period for remote roles at $180K, followed by Seattle ($175K), New York ($169K). 

For local roles during the layoff period, the highest-paying markets were also SF Bay Area ($180K), Seattle ($169K), and New York ($162K). Los Angeles saw the largest negative impact on local salaries, decreasing by 6% to $152K. Philadelphia saw the greatest amount of growth, with local salaries increasing by 7% to $150K. 

"We've witnessed an incredible shift in the tech hiring landscape since we published 2022's report," says Josh Brenner, Hired CEO. "After significant rounds of layoffs in the last few quarters, employers and candidates alike are finding their footing for 2023. 

The job reports and declining unemployment rates, however, are promising, and companies in various sectors are still hiring. It may feel more quiet than a year ago, but we're optimistic this 'tech winter' is thawing. 

For instance, our data shows a shift in hiring strategies as more companies pursue senior candidates and certain coding skills. Most continue to prioritize remote roles, despite some high-profile companies calling to 'Return to Office.'

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