How The Shift To Remote Work Might Affect Tech Salaries In The Era Of Covid-19
By Artur Meyster
Many people believe that remote work has only become a trend during Covid-19. But, according to Payscale, organizations have been offering remote positions for some years now. Working from home became popular during the Covid-19 lockdown because it was almost the only way for companies to survive. It has proven to be an effective working method to increase productivity and employee satisfaction.
In 2020, most companies needed to close their offices, and the digital transition accelerated its pace. As a result, salaries in the tech sector were outstanding, and several began to live the life of their dreams. However, remote work might have adverse effects on tech salaries’ growth. Here’s how the shift to remote work will affect tech wages.
Part-time or Full-time Remote Jobs?
During the coronavirus lockdown, most tech employees began to work from home on a full-time basis. Nonetheless, Hired’s 2020 State of Salaries report has proven that tech talent wants the best of both worlds. Fifty-six percent of surveyed professionals would prefer to have a part-time remote position rather than working from home permanently. Since human interaction is important for most workers, most tech employees want to be in the office at least two or three days a week.
Remote work has set new standards, and employers might struggle to retain top tech talent. According to Hired’s report, over 40% of full-time remote workers would expect to receive a bonus equal to their in-office perks. In that case, companies will need to provide schedule flexibility if they seek to remain competitive.
Adjusted Compensation
In 2021, big tech companies are implementing location-based policies to adjust remote workers’ salaries. Consequently, no matter where you live, your payment will experience an adjustment depending on your location. Adjusted wages might be beneficial for some employees, but for others, it won’t be what they expected.
Since remote work became the new standard, several tech workers began to think about relocating to increase their income. In that case, many employees with a San Francisco salary considered moving to cities like Denver. Most tech professionals believe that, regardless of location, the same job must be equally compensated. However, according to Hired’s report, tech talent is split on support for localized pays.
Salary Equity
Several organizations have been working hard to achieve transparency in the workplace. Nevertheless, Hired’s report shows how the lack of equity and inclusion affects not only offered salaries but also workers’ expected salaries. Despite their skills and job role, Black tech professionals expect lower wages than their white counterparts. Hired’s report has proven that existing equity, diversity, and inclusion initiatives aren’t making a significant impact and there’s still work to do.
On the otherhand, Hired’s 2020 State of Inequality report proves the existence of the gender wage gap. In other words, whether you’re a web developer or a data scientist, your salary might depend on your gender. After all, 63% of the time, feminine tech professionals are offered lower salaries than their male counterparts with the same role and skills.
Online Education: A Threat to US Tech Salaries?
During the coronavirus lockdown, education companies began to offer their courses overseas to survive. In that case, tech talent outside the US is real, and companies can diversify like never before. Since workers in countries like India and Colombia have lower expectations than US tech professionals, some companies will offer lower salaries. Hence, some US employees may lose their jobs if they don’t take a pay cut to work remotely.
Online education will become even more popular in 2021. Thanks to new technologies, companies now offer more personalized and immersive programs. For that reason, several considered enrolling in online coding bootcamps to increase their job opportunities. Remote learning may affect tech salaries’ growth rate. However, it will also help the tech industry to grow even faster.
Conclusion
Generally speaking, tech salaries will continue to change this year. More companies will take action to attract and retain top tech talent. After all, they have become essential for companies to run. In 2021, starting a new tech career is still a great alternative to change your lifestyle. Therefore, if you’re looking to get a six-figure salary job, you must visit Bootcamp Rankings. Here, you will find the best coding bootcamps in the market.
Photo by Jason Strull on Unsplash
