In 2020, remote work has taken a significant step forward and is now here to stay. Nowadays, most companies are promoting remote positions to make workers feel comfortable and increase their satisfaction. Also, during Covid-19, several organizations needed to freeze their operations and close their offices. As a result, there was no better option than hiring remote workers to move forward.
Wages in the tech industry have been non-stop growing during the past few years. However, since more companies are embracing remote work, tech salaries have been significantly affected. In that case, if you want to know how tech salaries have changed in the era of coronavirus, don’t hesitate to read this article.
Fewer On-site Perks But Added Compensation?
Tech salaries are skyrocketing these days. Most tech roles now offer salaries over $100,000 and many people have started to learn new tech skills to join the six-figure salary club. Companies like Netflix and Microsoft are offering exceptional on-site perks for tech employees. But, if you work from home, you undoubtedly won’t enjoy your on-site perks. Whether you’re a data scientist, a software engineer, or a web developer, if you work from home, you probably will receive a new offer.
Companies are reducing their on-site perks and adjusting remote workers’ salaries. According to Hired’s 2020 State of Salaries report, 43 percent of tech professionals would expect an added compensation equal to their in-office benefits even if they get a full-time remote position. On the other hand, 57 percent of surveyed individuals would be willing to forgo that added compensation if they get a full-time or part-time remote position. Most tech professionals would like to go to the office for at least 2 days per week.
Full-time Remote Work?
Nowadays, most workers might have a full-time remote position. But, although remote work is becoming more popular day after day, Hired’s report has shown that full-time remote positions won’t be tech workers’ favorites. Furthermore, companies like Facebook are already implementing new strategies to adjust tech wages. For example, since remote work enables individuals to live in a city like Denver and get a salary from cities like San Francisco, many have decided to move. Facebook is implementing location-based salaries for those who are thinking about moving. In other words, if they live in San Francisco and move to a city like Austin, they will get an Austin salary.
Talent Overseas: A Threat to US Employees
Remote work has also forced schools and universities to take new actions to survive. Hence, remote learning is also becoming more popular and education companies are now offering online courses to help individuals get skilled. Remote learning has allowed talent outside the US to get in the game and US tech professionals may start to experience pay cuts. This is because tech professionals in Latin America or Asia have lower expectations than US tech professionals. As a result, companies can offer lower payments and keep qualified professionals engaged.
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The Expectation Gap
Despite many organizations taking action to increase diversity and inclusion in the workplace, there’s still work to do. According to Hired’s report, existing initiatives aren’t making a significant impact and employers are offering lower salaries to Black tech professionals, for example. Also, Black tech professionals have lower expectations than their Hispanic, white, and Asian counterparts. The expectation gap is real and even female tech professionals are suffering the consequences. According to Hired’s 2020 State of Wage Inequality report, 65 percent of women ask for lower salaries than their male counterparts with the same role and job title.
In general, tech professionals’ earning will continue to increase in the next few years as they are becoming indispensable for organizations. Nonetheless, the growth rate might slowly decrease. Also, there’s a long way to go to achieve salary equality. But, if more companies recognize the existence of the salary and expectation gaps, achieving transparency in the workplace won’t be a struggle.