The tech hiring landscape in 2025 is more complex than ever. Whether you’re a startup founder, HR professional, or hiring manager, you’re likely feeling the pressure of competing for talent in a market where compensation expectations shift almost weekly.
Salary benchmarking tools have become essential for making informed compensation decisions. These platforms analyze vast amounts of compensation data, helping you understand what companies are really paying for tech talent. But with the market flooded with options, choosing and using the right tool can be challenging.
In this practical guide, you’ll discover:
According to the latest Dice Tech Salary Report, the average tech salary now stands at $112,521 - but that figure barely scratches the surface of today’s complex compensation landscape. The manufacturing sector has seen tech salaries surge by 15.1%, driven by increased AI adoption and automation initiatives. Meanwhile, education technology has experienced an unexpected 11% decrease in average compensation, reflecting shifting priorities in the post-pandemic era.
The rise of remote work has fundamentally changed how companies think about compensation. Take the UK market as an example: The Ashdown Group’s latest salary guide reveals that a senior developer in London commands £114,035, while the same role in Wales typically pays £107,438 - a difference that’s narrowing as remote work becomes the norm.
Why Getting Benchmarking Right Matters:
The stakes are higher than ever. Recent research from Vorecol shows that 68% of tech professionals would consider leaving their current role for better compensation. But it’s not just about retention - getting compensation wrong can have serious consequences:
The first step is often the most overlooked: creating clear, standardized job descriptions. A “Full-Stack Developer” might mean different things at different companies - at a startup, they might handle everything from frontend to DevOps, while at an enterprise, the role might be more specialized.
Pro Tip: Create a standardized template for each role that includes:
The most reliable salary insights come from combining multiple data sources:
| Source Type | Ideal Use Case | Leading Tools | Key Benefits |
|---|---|---|---|
| Real-time HRIS | Fast-moving markets | Ravio, Pave | Live market data |
| Government Data | Compliance focus | BLS, ONS | Statistical reliability |
| Crowdsourced | Startup benchmarking | Levels.fyi | Transparency |
Modern tools like Ravio pull real-time data from over 100 HR systems, while established resources like the Ashdown Group provide detailed regional insights. The key is using multiple sources to cross-reference your findings.
Location still matters, even in a remote-first world. The Ashdown Group’s research shows that a CTO position in London commands £180,000, compared to £148,760 in Wales. But the picture gets more complex when you factor in specialized skills:
2025 Skill Premiums:
Using real market data, construct ranges that make sense for your organization:
| Role | Location | Entry Level | Mid-Level | Senior Level |
|---|---|---|---|---|
| DevOps Engineer | London | £92,593 | £101,852 | £120,370 |
| DevOps Engineer | Wales | £82,645 | £90,909 | £107,438 |
Pro Tip: Don’t just copy these numbers - use them as a starting point and adjust based on your company’s size, funding stage, and total compensation philosophy.
The tech market moves too fast for annual reviews. Set up quarterly benchmarking sessions, especially around key events:
Here’s our analysis of the top tools available in 2025:
Perfect for European startups that need real-time data. Integrates directly with your HRIS for automated benchmarking.
The go-to platform for US/Canadian companies, especially those offering equity.
Budget-friendly option with surprisingly robust features.
Enterprise-grade solution with deep customization options.
The gold standard for FAANG compensation data.
Great for quick market checks and general trends.
The tech market moves too fast for last year’s numbers. Use tools like Ravio that provide weekly updates to stay current.
Modern tech compensation is complex. Consider:
Focus your detailed benchmarking efforts on:
Start your benchmarking journey with these free tools:
Comprehensive Templates
Market Reports
Remember: effective salary benchmarking is more than just comparing numbers. It’s about building a compensation strategy that:
By combining the right tools with a thoughtful approach to compensation, you’ll be well-equipped to make competitive offers while maintaining budget discipline.
