In 2021, many articles are proclaiming that big tech companies are not surviving but thriving in the era of coronavirus. The digital transition made remote work indispensable for companies. Hence, companies are now offering more remote jobs to attract and retain top talent. The new normal has changed how we live, work, and learn. Organizations can now diversify like never before. However, this might be a threat to employees in the US.
Although tech professionals are in-demand, remote work has changed salaries in the tech industry. For that reason, if you seek to become a tech professional and you want to know how salaries are changing in the tech industry, you must read this article. It’ll help you get a better idea of how working from home is transforming the rules of the game.
Salary Equity: a Dream for Many
Over the last few decades, organizations have worked hard to increase transparency in the workplace. Nonetheless, Hired’s 2020 State of Salaries report shows that existing initiatives aren’t effective, and there’s still a lot of work to do. In 2021, salaries in the tech sector are skyrocketing. For example, according to Computer Science Hero, a software engineer earns, on average, $133,000 per year in the US. In 2019, the average salary offered to tech professionals was $130,000 worldwide.
Hired’s report shows how salaries can depend not only on your race but your gender. Women in the tech industry receive lower payments than men with the same role and skills. In fact, this situation happens over 60% of the time. The lack of transparency is also affecting the expectations of tech professionals. Black workers’ expected salaries are lower than those of Hispanic, Asian, and white tech employees.
The existence of the wage gap and the expectation gap is a big concern for many professionals in the tech industry. For that reason, several organizations seek to implement new policies to improve the workplace. As a result, it could increase tech talent motivation and help professionals find a job they love as well as receive the right pay to their bank accounts for the actual value of their abilities.
Since remote work is the new standard, the vast majority of workers in the tech sector couldn’t enjoy their in-office perks. Consequently, many companies are thinking about adjusting salaries for those who seek to keep a full-time remote position. In other words, many tech employees will receive a bonus if they decide to work remotely full time.
On the other hand, top-notch companies are implementing new policies to adjust salaries depending on workers’ location. For example, if you live in Austin or Denver and decide to move to Seattle or San Francisco, you’ll get a pay rise based on the new location’s cost of living.
According to Hired’s report, tech talent is split on supporting localized salaries. Although most tech workers believe the same work should be compensated equally, it’s not a surprise that workers in the San Francisco Bay Area would like to keep their salary the same regardless of their location. After all, San Francisco still boasts the best pay in tech, and moving to a city with lower costs of living would be an excellent way to increase income.
Schedule Flexibility: a New Challenge for Employers
Although remote work has had a positive impact on workers’ satisfaction, Hired’s report shows that tech talent wants the best of both worlds. Over 50% of surveyed professionals would prefer to be in the office at least 2 or 3 days per week rather than working from home full time. This situation has created a new challenge for employers. If companies seek to hire the best employees in the market, they will need to embrace a new working style. Otherwise, staying relevant will become a struggle.
In general, remote work has transformed our lives. Therefore, if you seek to start a new career and prepare for the future of work, you’ll need to embrace changes. Starting a tech career is still a great choice if you want to get a great job in 2021. Above all, salaries in the tech sector will continue to grow. Online schools are becoming more popular, and enrolling in a coding bootcamp is among the best alternatives to start learning. Don’t forget that education is becoming today’s currency.
Andrej Fedek is a digital marketer. He recently started his own blog about digital marketing called InterCool Studio. His passion is to help startups grow and thrive in a competitive environment.