The coronavirus pandemic has transformed our lives. By changing the way we live, interact, and work, it has forced organizations to try new strategies. Covid-19 made remote workers indispensable for companies. Remote work with the help of remote work tools is now the new standard, and tech employees are playing a crucial role in leading companies to success.
Because of tech workers’ high demand, tech salaries have significantly changed. There is a ‘before’ and ‘after’ the coronavirus outbreak. This article will provide you with a better idea of how tech salaries have been affected by the coronavirus pandemic.
The Hired’s 2020 States of Salaries Report shows how tech salaries have been increasing year after year consistently. They grew in every major market before Covid-19. In the US market, for example, the average salary was $146,000 per year. In 2019, tech salaries’ growth was led by Austin and Toronto, with a 10 percent increase in each city. The San Francisco Bay Area, on the other hand, still boasts the highest pay in the tech industry, with an average of $155,000 per year.
Before the coronavirus outbreak, most employees needed to go to an office to work. However, after the Covid-19 outbreak, most companies leaned on remote talent to survive. Hired’s salary report also shows that despite 2019 data, there were substantial gaps between white tech workers and their Hispanic and Black counterparts. Given that, there’s no doubt that existing equity, diversity, and inclusion initiatives have not made a significant impact.
In 2019, companies offered, on average, $124,000, $128,000, and $135,000 to Black, Hispanic, and white tech professionals, respectively. And in 2020, they are offering $134,000, 141,000, and $144,000. As can be seen, wages did increase, but the fact that your salary may depend on your race is discouraging.
Remote work changed the way companies operate and has proven to increase their productivity. As a result, tech salaries have grown significantly. Since remote workers didn’t need to be in the same city as the company, the age-old calculation came up. For example, if employees can keep their SF salary and move to another city like Denver, their profits would be higher. Still, top-notch companies are implementing location-based compensation philosophies for workers who plan to relocate and work remotely.
Remote work has improved employees’ work-life balance. They now can spend more valuable time with their loved ones and even have time to pursue passions. Today, nearly one-third of tech employees would accept a reduced salary if they can permanently work from home. More companies are providing tech workers with schedule flexibility. For that reason, more than half of tech talent would like to go to their office only once or twice a week.
The cost of living is one of the main factors that tech employees are concerned about. Ninety percent of tech talent believes that there should be equal pay for the same job. However, 40 percent say they would support location adjustments when factoring the cost of living.
Additionally, remote work will allow organizations to diversify like never before. As long as employees can accomplish their tasks, companies will be on the right path to achieve success. Employers don’t need to limit their search and are able to hire employees from other cities or even other countries. Therefore, job opportunities are the same for men and women.
For tech professionals, education is indispensable. Many companies are providing employees with tuition reimbursement benefits to help them learn new and better coding techniques. Today, several coding schools have moved overseas by providing online courses to help students get skilled. As a result, qualified talent outside the US exists, and their chances of getting hired by world-class companies like Nintendo or Apple have increased.
In the US, tech professionals may experience a pay cut, and those who won’t take it may suffer when the industry starts hiring more employees internationally. For example, a front end developer can make, on average, $110,065 per year in the US. But, in Mexico, the average salary of a front end developer is $11,650 per year. So, hiring tech professionals overseas would allow organizations to reduce costs significantly.
While the world is facing an uncertain future, more people are proclaiming that big tech companies are not surviving but thriving during the Covid-19 pandemic. Tech professionals are maintaining cautious confidence in job security. Tech talent is split, and about 42 percent is concerned about being laid off in the next six months. Nevertheless, tech professionals are very confident about finding a new job if they are laid off or leave their current positions. Also, most tech employees believe their salaries will increase in the next six months. So, if you become a full stack developer, for example, your chances of getting employed and earning a better salary are higher while more companies keep investing in tech.
While the tech market keeps gaining more ground, tech salaries tend to increase. The need for tech skills is growing daily, and companies will need to go further to meet tech professionals’ demands. From a diversity angle, racial and gender biases will decrease. As companies and tech talent navigate the new normal, there’s a strong belief that transparency around tech salaries will increase. Given that, tech professionals may not only get a job they love but a job that compensates them for the value of their work.