Covid-19 And Remote Work: How The New Normal Might Affect Tech Wages

by Artur Meyster

In 2020, several organizations adopted remote work as their new working method to prevent the coronavirus from spreading. As a result, in 2021, more companies are offering remote positions and have gone overseas to reduce costs. For some employees, working from home has been a dream come true. This is because they were able to relocate and increase their net profits. However, big tech companies are already taking action and implementing location-based policies. If you want to know how Covid-19 and remote work have changed tech salaries, you can’t stop reading this article.

Adjusted Salaries

In the digital era, organizations have gone further to meet top talent expectations. The shortage of talent has become a challenge, and companies are battling to catch the most skilled employees’ attention. Companies are offering incredible perks like on-site free food, gym classes, and spa sessions to help workers improve their wellbeing. Nevertheless, because of remote work, many employees couldn’t enjoy these types of benefits last year.

Hired’s 2020 State of Salary report shows that tech workers are split on added compensation for on-site perks. In fact, 42% of surveyed professionals would expect to receive a bonus equal to their in-office perks. On the other hand, over 50% of tech employees would be willing to forgo added compensation if they keep a full-time remote position.

Part-time Remote Positions

Many people think remote positions have only been offered because of the Covid-19 lockdown. But, according to PayScale, over the past few years, more organizations have been embracing remote work as a benefit for employees. PayScale’s Compensation Best Practices Report shows that 38% of companies offered remote positions in 2016, and, last year, over 45% of companies offered remote jobs.

There’s no doubt that remote work has been growing in popularity. Nowadays, more employees are willing to work from home. However, these days, only 3.6% of the total workforce have at least a half-time remote job. Although it’s not a very surprising number, over 25% of the workforce is expected to work from home by the end of 2021.

Hired’s report also shows how the majority of tech employees want the best of both worlds. Although remote work has proven to increase workers’ satisfaction, they would prefer a part-time remote position instead of a full-time remote job. Hence, employers will need to provide schedule flexibility and let workers set their own terms if companies seek to improve their employee engagement strategies.

Online Education: a Possible Threat for Remote Workers

In 2020, vocational schools and universities began to offer online courses to stay relevant and move forward. Remote learning is now the new standard, and more individuals would like to learn from home. During the coronavirus lockdown, many people lost their jobs because of their lack of technical skills. As a result, online coding bootcamps became more popular and have now gone overseas.

Remote learning enables individuals to live in countries like Mexico and take courses in the US. In that case, there’s no doubt that talent outside the US is real. US tech workers may start to experience pay cuts since workers in countries like India and Mexico would expect lower salaries.

Salary Equity

For years, companies have been trying to increase transparency in the workplace. However, Hired’s report demonstrates that there’s still a lot of work to do. Existing equity, diversity, and inclusion initiatives are not making a significant impact, and the lack of transparency is also affecting workers’ expectations.

In 2020, Black tech professionals were offered lower wages than their Hispanic and white counterparts. It may not be a surprise for some people, but it’s more discouraging the fact that Black tech workers would also expect lower salaries. In other words, a Black software engineer would expect to receive a lower wage than a white software engineer with the same job title and skills.

Conclusion

Tech salaries have been growing fast over the past few years. Although they have significantly changed because of remote work and Covid-19, they will continue to grow in the next decade. Starting a new tech career is a great alternative to increase your job opportunities and change your lifestyle. Hence, if you become a data scientist, for example, you’ll be able to get a six-figure salary job. According to Bootcamp Rankings, data scientists’ average salary is $108,000 per year, and over 1,200 companies are looking for skilled employees.

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