Tech Workers in Austin Boast Highest Salaries in the United States Adjusted for Cost of Living

Mar 10, 2014
PR Newswire

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 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. 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  


TriNet SMBeat ranks the following 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 (as of 12/31/2013) in the U.S.:


    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


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