In 2021, the new normal has forced organizations to implement new strategies and policies. Tech professionals are in-demand and have helped organizations to survive. Working remotely might seem very attractive to many people. It allows you to spend valuable time with your loved ones and even pursue a passion. Also, it has proven to increase productivity and most companies are now willing to offer more remote positions.
Tech salaries have grown continually in the past few years. However, nowadays, they have been affected by remote work. If you want to learn more about the future of tech salaries, here’s a list of four things you need to know.
Remote Learning: a Potential Threat to US Tech Employees
More education companies began to offer online services. Coding schools became very popular as they enabled students to get back in the game. Thinkful, for example, is among the best vocational schools in the US. It offers a wide range of courses in data science, digital marketing, web development, and UI/UX design. Also, its courses are offered in more than 20 cities making it a great alternative to learn from home.
Many coding schools have followed Thinkful’s steps and are now offering online courses to reach bigger audiences. But, they are going beyond and have offered their services to individuals outside the US. Consequently, there’s no doubt that talent outside the US is real, and several tech companies are willing to hire remote workers from countries in Asia or Latin America. After all, they expect lower salaries than US employees. This might be a possible threat for those who wouldn’t take a pay cut for a full-time remote position.
Location-based Compensation
Being a remote worker means that you can do your work duties from any place. In that case, many professionals are thinking about moving to cities with lower costs of living. For example, imagine getting a job in a city like Seattle. If you move to Denver but keep your Seattle salary, your net earnings will be higher. Although it may be a dream come true for some workers, world-class companies are already implementing location-based policies to prevent that from happening.
Facebook is planning to implement location-based strategies and adjust tech workers’ salaries. Hence, if you’re planning to move from one city to another, your salary will be adjusted depending on your location. In other words, if you live in Seattle and move to Los Angeles, you’ll get an LA salary.
Full-time Remote Jobs: A Solution Only For Some
Remote work is a dream come true for many workers, but Hired’s 2020 State of Salaries report shows that full-time remote jobs aren’t tech professionals’ first choice. In fact, over 50 percent of tech workers would prefer to be in the office at least two or three times a week. Also, some professionals are expecting to receive an adjustment in their salary. Since they have full-time remote positions, 43 percent of surveyed individuals would expect to receive added compensation equal to their in-office perks.
In the following years, more companies will embrace remote work because it’s key to retaining top tech talent. Several will need to accept almost any terms qualified professionals ask for. After all, tech workers have become vital for companies, and if they don’t meet tech employees’ needs, they may be taken out of the competition.
Salary Equality: a Dream for Many
Nowadays, many companies have already taken action to diversify their workforce like never before. For example, since remote work is the new standard, employers have been looking for professionals from different races, genders, and ages. However, Hired’s report has proven that existing initiatives aren’t making a great impact. In 2020, Black tech workers are offered lower salaries than their counterparts. Therefore, no matter if you are a cloud engineer or a digital marketer, believe it or not, your salary may depend on your race.
Additionally, Hired’s report demonstrates that the lack of transparency has also affected tech professionals’ expectations. As a result, the expected salaries of Black and Hispanic tech professionals are also lower than those of their white and Asian counterparts. This demonstrates that there’s more work to do if tech employees want to be compensated for the value of their abilities.
Conclusion
Remote work has transformed the future of the tech industry. Nonetheless, there’s no doubt that the tech sector will continue to grow. The digital era is making new technologies and digital solutions indispensable for companies. In that case, if you want to have a place in the future of work, learning new tech skills is crucial. If you don’t know how to start, you should take a look at Career Karma’s website. It’ll help you to find the best coding bootcamps in the market.
