For a variety of reasons, Denver has become a darling in startup hub rankings.
Whether it's the relatively low-cost of living compared to traditional tech hubs, high quality of life scores, available talent and even the weather, the city has much to boast about.
And, according to a new 2020 State of Salaries Report from Hired, Denver's tech compensation is growing at the second fastest rate in the country.
Denver ranked only behind Austin and Toronto for tech salary growth in the report, with an average salary growth of 9% in 2019. That growth put the average Denver tech salary at $126,000.
While that figure is still lower than San Francisco, Seattle, New York and others, Denver's average tech employee salary when adjusted for cost of living in the Bay Area trails only one other city, Austin again.
With factors like rent, utilities and taxes factored in, Denver sits firmly in second place with an adjusted salary of $202,000, trailing Austin by more than $20,000.
“…even though you may be earning a bigger paycheck living in the SF Bay Area, your money will go significantly further in cities like Austin and Denver, where your adjusted salary becomes $224,000 and $202,000 respectively,” the report says.
While Denver ranks highly for salary growth compared to other cities, the tech world as a whole still has much to do when it comes to diversity and inclusion, according to a survey of 2,400 job candidates and hiring data analyzed by Hired.
In the last 5 years, more than 63% of women interviewed said they felt discriminated against in the workplace due to their gender, compared to just 7% of men, the report showed.
Meanwhile, salary expectations differ based on race. For example, Black women are expecting to make $0.88 for every $1.00 a white man expects, the survey of job applicants showed. And Black men said they expect to earn $0.92 for every $1.00 a white male applicant expects.
Hired said it appears the diversity and inclusion efforts in the industry “aren’t making a meaningful impact.”
Salaries for Black candidates are increasing, but they’re still the lowest of any racial group and $10,000 less on average than those offered to white candidates. Last year, that figure was at $11,000 less on average.
In an effort to shine a spotlight on these diversity issues, Denver Startup Week, one of the state's largest startup gatherings, has implemented a new policy regarding its panels. At this year's event, all sessions will be required to have gender and/or race and ethnicity diversity with regard to its organization, participation and/or content.
Brent Wistrom contributed to this report.
