Developer salaries are on the rise again after a period of nearly two years in which salaries did not change at all. This advance is most likely attributable to an improving economy. In fact, in regions like Silicon Valley, the economy's recovery and the proliferation of mobile start-ups has created an acute shortage of developers, with many companies actively competing for talent already employed at competitors. Experts caution, though, whether this forward momentum can be sustained or whether the Silicon Valley hiring experience is part of a bubble that will pop in 2014.
In 2013, compensation increased faster than inflation for the first time in three years for both testers and developers. Software engineers have enjoyed steady increases during the past four years, which continued but did not accelerate this year as much as the lower-paid positions did.
Salaries varied widely by region. The numbers for the Pacific region are pushed up by salaries in the Bay Area, which includes Silicon Valley and San Francisco.
Base salaries tend to be higher at larger firms. The compensation disparity between large and small firms is particularly wide in management. Unlike other careers, in which salaries tend to rise with experience, salaries flatten past 35 years of age in software development. This shows a similar pattern in last year's survey, with one noticeable difference — salaries improved this year for developers over 55, while staying static for staff in the tiers between 36 and 55. The salary figures show evidence of a gender-based salary gap. For example, 2013 was the first year that women made more in salary than they did in 2010. Meanwhile, their male counterparts enjoyed salary increases every year during that period. More than half the developers and over three-quarters of managers expect some kind of bonus. As was the case in previous years, personal performance was the principal deciding factor for bonuses.
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