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TheStreet Open House

Tech Firms Walk Line on Pay, Earnings

Stocks in this article: AAPLGOOGRIMMMSFT

NEW YORK ( TheStreet) -- Technology recruiters have seen a resurgence in demand for services for professionals in the space, as mobile applications, software developers, designers, and infrastructure jobs have taken off.

While the overall tech salaries for 2011 are not out yet, the trend from 2006-10 showed a vast increase. Overall salaries rose approximately 14%, and Silicon Valley salaries rose 16% during this time frame, according to data from Alice Hill, managing director at Dice.com a technology job-search Web site. Considering the strains on supply, salaries are only likely to go higher in 2011 and 2012.

Anything mobile related is very much in demand, "particularly in e-commerce," Diana Dyeovich, a technical recruiter said. Developers have seen an increase in demand for their services, and as such, as increase in pay.

With people increasingly using their smartphones and tablets on a daily basis for their data consumption, salaries can be expected to rise.

Does this mean the competition for talent among companies like Apple (AAPL), Google (GOOG), Microsoft (MSFT), Research In Motion (RIMM), Facebook and Twitter could affect earnings growth?

2011 saw a resurgence in demand for developers, and 2012 is expected to continue this trend, as all of the names mentioned above fight for developer talent. Job hunters are getting increasingly confident, as 40% of entrants are confident can they find a new job, according to Technisource's latest survey. This is based on a sample size of 257 surveyed. 52% of those surveyed see the economy getting stronger or staying the same. Amongst IT professionals, the Confidence Level is at 47.3.

Amish Shah, CEO and founder of Millennium Search, said that he works with a lot of venture capital firms and board members, and that 2012 is going to be "real competitive." 2012 is going to be even more so, "as companies like Facebook and Zynga go public. Millennium Search describes itself as an "executive search firm specializing in executive level placements with venture capital funded startups and Fortune 500 companies."

Developers are getting "bonuses to stay, retention bonuses, on top of base salaries ranging from $90,000-$175,000 for experience from two to six years," Shah noted. He also said that employees that have corporate jobs are developing apps on the side, making up to $200 per hour.

Hill said the talent shortage is affecting tech salaries. "We are hitting a spot in places, like mobile, cloud and Ruby on Rails developers where the employers are having to come up with more attractive packages.

"We are talking to our customers, they are citing multiple offers. We think the shortage, signs of competition, and the multiple offers we are seeing are probably saying that employers are going to have to open up their wallets. It's hard enough to find a qualified candidate, with 4.1% unemployment in tech, so you are probably going to have to pay for it," Hill said.

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