Denver's status as a tech hub may be threatened

Denver's desire to dominate as a U.S. tech hub may be derailed if it can't pay up.

Driving the news: When stacked against a dozen major U.S. tech markets, Denver sits in the bottom tier for salaries, according to a new report by job search marketplace Hired.

• Compared with 12 other cities, Denver ranked 10th, with only Chicago and Dallas trailing in average pay rates.

Zoom in: The average tech salary in Denver increased by 1% between 2020 and 2021, totaling about $135,000 — well below the national average of $152,000.

• When it comes to remote work, Denver's average tech salary lags even further. Nationwide, that number hovers around $143,000 — a jump of nearly 5% this year.

State of play: Local industry experts tell Axios that Colorado's tech workforce may be shrinking due to demand for remote work.

• Since the start of the pandemic, Ibotta has seen between 25-30% of its workforce move out of state, due in large part to staffers having the ability to relocate and work remotely, says company spokesperson Molly Galler.
• The purge is propelling the mobile rebate company to transition to a national sourcing strategy and look to hire in Canada and Mexico for some roles.

Other key takeaways: Flexible work options are likely to attract more talent, the Hired report shows. Around 52% of those surveyed globally preferred a remote-first model.

• Lowering salaries will increase turnover. Roughly 74% of tech workers said they would start looking elsewhere if salaries didn't increase or they were denied a raise within six months.

The big picture: The tech labor market remains incredibly hot amid the Great Resignation. Tech workers were in high demand pre-pandemic, and the COVID era's rapid moves to digital further intensified that need, writes Axios' Margaret Harding McGill.