The tech market is a fast-growing sector that has reimagined our lives. Nowadays, tech devices are everywhere, from home appliances to healthcare services. Over the last decade, wages in the tech market have grown consistently. Offices are closed since several countries implemented coronavirus-related restrictions to stop the virus from spreading. Organizations have been struggling to survive, but thanks to remote workers, they could move on.
Remote work has reshaped not only the way we work but how much we earn. If you want to know how salaries have changed in the tech sector, reading this article will help you get a better idea.
Working in the Office May Become a Thing of the Past
In the era of Covid-19, working from home has become the new standard, and it has proven to increase workers’ job satisfaction. Organizations are providing workers with schedule flexibility to help them improve their wellbeing, and they love it. According to Hired’s 2020 State of Salaries report, most tech employees want to work in the office two or three days a week or get a full-time remote position. In that case, working in the office may become obsolete. If companies want to improve their employee engagement strategies, embracing remote work will be necessary.
Remote work has also allowed organizations to reduce personnel and office rent costs. As a result, there’s no doubt that it has changed the tech industry’s working style. Many businesses will opt to build distributed teams to improve their strategies and increase customer satisfaction. Still, finding the right balance may be a challenge, and for companies, communicating their remote work policies is mandatory.
International Employees
Remote work has allowed employers to go overseas and find the right talent outside US borders. Today, online coding bootcamps are gaining more ground, and individuals in Latin America and Asia are entering the competition. US employees may experience pay cuts since tech professionals in countries like Mexico would expect lower salaries.
In Mexico, the typical salary of a cybersecurity engineer is $22,661. On the other hand, in the US market, cybersecurity engineers make, on average, $138,000 per year. Clearly, there are some factors that may affect offered salaries like, for example, the costs of living. However, hiring international employees will enable companies to get the same results for a lower price.
Ineffective Initiatives
In 2020, many organizations have implemented new strategies and philosophies to increase awareness and transparency in the workplace. Still, existing initiatives are not making a relevant impact. According to Hired’s report, Black tech professionals are offered lower salaries than their white counterparts. In other words, a Black software engineer would earn less than a white software engineer working in the same company.
Regarding ageism and gender bias, there’s still work to do. According to Hired’s report, salaries offered to candidates over the age of 45 may become stagnant and frequently tend to decline. Hired’s wage inequality report makes the wage gap visible and shows how women are paid less than their male coworkers with the same job title. In fact, 60 percent of female tech professionals have found that they are paid less than their peers of another gender.
Location-Based Compensation
Salaries in the tech sector are skyrocketing, and day after day, more professionals are considering relocating. In 2020, the San Francisco Bay Area boasts the highest pay in tech. With a typical salary of $155,000 per year, several seek to get a job in San Francisco and move to a city like Denver. They expect to get a higher salary and live in a city with lower costs of living. It may become real for some. But, tech giants are already taking action and are implementing location-based policies. Facebook, for example, is planning to offer adjusted salaries for those who are planning to relocate. In other words, if you get a remote job in San Francisco but move to a city like Denver or Austin, your salary may be adjusted to your current location.
Conclusion
Thanks to tech innovations, companies are taking significant strides and are making the world a better place. Therefore, the tech market and tech wages will continue to grow undoubtedly. In that case, visiting websites like Career Karma and looking for coding boot camps is a great alternative these days. For companies, reducing racial bias and discrimination has become a challenge. But, hopefully, companies will create new standards to achieve pay parity and increase awareness in the tech sector.
