Employee Benefits Summary for the Software and Technology Development Industry

Learn more about the types of benefits that software and technology development companies offer across medical, short term disability, long term disability, life, vacation and leave and financial incentives.

Did you know about 87% of Software and Technology Development Companies offer medical insurance?

Complete Benefits Guide:

  • Medical
  • Disability
  • Life
  • Sick & Vacation
  • Retirement

 

The software and technology development industry deals with the creation of applications that run on devices and systems; this can include computers, tablets, cell phones, smart systems, and everything in between.

As a direct result of our technologically-focused society, the need for talented and educated software developers is expected to increase an astounding 22% within the next eight years. This significant demand will place companies in a race to secure the best candidates for themselves rather than risk them going to the competition. With a complete benefits package, the ideal employees will come right to their door.

Since these employees are educated and skilled workers, competitive benefit packages can help to attract talented employees and lower turnover rates. Additionally, benefits can help to lower major healthcare utilization and therefore could see lower than average rates on a PM/PM basis. Some examples of this include student loan repayment, flexible work schedules are attractive and more creative mechanisms like FSA's, HSA's and similar products are likely to be used.

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The Software and Technology Development Industry Employment Summary

As of January 2021, there were 144,000 software and technology development organizations nationwide, employing over 1.8 million professionals. On average, each business tends to be on the smaller side, with 25 staff members. This is a male-dominated industry, with only 27% of employees identifying as female, and the median employee age is 42 years old.

The Software and Technology Development Industry Insurance Benefits Comparison

87% Offer Medical Benefits

What percentage of software and technology development employers offer medical insurance?

  • 87% of software and technology development companies offer medical benefits to their employees. This is well above the national average of 69%.
  • These businesses provide an average monthly employer premium of $1,032 for family coverage. This is also above the national average of $1,121.
  • Additionally, they provide an average monthly employer premium of $433 for individual coverage. This is below the national average of $458.
60% Offer Short-Term Long-Term Disability

What percentage of software and technology development employers offer short and/or long-term disability insurance?

60% of employers offer both short-term and long-term disability protection. The national average is 42% and 34%, respectively.

75% Offer Life Insurance

What percent of software and technology development employers offer life insurance?

75% of software and technology development companies offer life insurance, which is again above the national average of 56%.

33% Offer PaidFamily Leave

Do software and technology development employers provide access to paid family leave?

  • 33% of software and technology development companies provide access to paid family leave compared to the national average of 20%.
  • Unpaid family leave is offered to 90% of software and technology development companies, compared to the slightly lower national average of 88%.
  • Consolidated leave plans are used in 63% of software and technology development companies, compared to the national average of 44%.

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Summary

As a whole, the software and technology development industry stands above the national industry standard for providing comprehensive benefits packages to their employees. There is some room for improvement, such as providing higher employer premiums for individual and family coverage, which employers can change to meet national guidelines. Once these changes are made, employers in this industry will realize how important all-inclusive employee benefits for software and technology development professionals are for attracting and retaining top talent for years to come.