Tech workers might be better off looking beyond the mecca of Silicon Valley for jobs, according to a new study by career marketplace firm Hired.

The company’s just-released second annual State of Salaries research report found, unsurprisingly, that software engineers in San Francisco earn considerably more than their counterparts in the rest of the U.S. and other tech markets around the world. That’s because of the well-known benefits of Silicon Valley: access to the venture capital community, networking opportunities, social activities, and that “Northern California’s landscape often outweigh the lower purchasing power.” This, plus the prestige of living in San Francisco, has kept wages high.

Nonetheless, the study found that the cost of living in San Francisco is so exorbitant that making a move to a satellite office in the U.S. can be a lucrative option — especially since employees willing to relocate to other cities in the U.S., Asia or Europe, make considerably more than local candidates do for the same job.

Wages are adjusted for cost of living in San Francisco

The report’s author, Hired data scientist Jessica Kirkpatrick, told SiliconANGLE, “If you wanted to work in tech 10 years ago, Silicon Valley was the place to be. Nowadays, tech workers can grow their careers in a number of markets.” Popular markets, she says, are currently Seattle, Austin and Sydney.

The way we work has also changed significantly, with many employees now working remotely. This is something managers need to be trained for, says Kirkpatrick. The trend will continue, she says, so companies will have to meet employees halfway so that they can keep hold of their best talent. “Companies should adjust their workforce policies to allow for flexible hours and rethink the way they find and build relationships with contract workers,” she said

The report also found that race and age can negatively impact salaries. Although the average African-American candidate on the Hired platform is 49 percent more likely to get hired than the average white person, they receive $10,000 less on average in San Francisco and New York. “It’s unclear if African-American candidates are receiving more offers because of diversity initiatives, a lower preferred salary or a combination of those and other factors,” Kirkpatrick said. It might partly be a consequence of “unconscious biases during the hiring process.”

Another factor, she says, is that candidates tend to base their salary requirements for a new job off their current salary. “If a minority candidate was being underpaid at their previous job, this practice will perpetuate the wage gap,” she says. Interestingly, the report found that Asian and Latino candidates asked for more or less equal salaries to their white counterparts, but were also less likely to get hired.

“We’re releasing this data to bring more transparency to the hiring industry and to empower candidates to understand their market value based on their skills and experience,” said Kirkpatrick.

The study focused on technology workers in 16 cities. The salaries included reflect more than 280,000 interview requests and job offers from the past year facilitated through a marketplace of more than 5,000 participating companies and 45,000 job seekers.

Images courtesy of Hired