Tech wages are fantastic these days. In the US, almost all tech employees earn six-figure salaries. Hence, starting a tech career has become an alternative for many to change their lifestyle. Wages in the tech sector showed widespread growth in 2019. According to Hired’s data, the average salary offered to tech talent was $130,000 a year worldwide.
During the coronavirus lockdown, remote workers played a key role in helping companies to survive. As a result, the working style has changed, and Covid-19 is making companies implement new strategies. If you seek to know more about tech wages, here’s how Covid-19 has impacted tech professionals’ earnings.
International Tech Talent
The increasing demand for tech employees has made the competition more challenging. Nowadays, vocational schools are going beyond US borders by offering online coding bootcamps. As a result, tech talent outside the US is real, and pay cuts will knock on US employees’ doors. Those who won’t take a pay cut may suffer If Silicon Valley giants hire more international workers.
If you’re willing to get in the game, you should visit websites like Career Karma. They will help you find a coding bootcamp that fits your needs and allows you to get skilled. After all, tech is becoming indispensable not only for companies but for users, and job opportunities will tend to increase.
Adjusted Salaries for Employees Who Relocate
Remote workers only need an Internet connection and reliable tech to accomplish their tasks. Therefore, working from any place isn’t a barrier. Relocation has crossed tech professionals’ minds since getting a San Francisco Bay Area salary and moving to cities with lower living costs is possible. However, it may become real only for some individuals.
In 2020, top-notch firms like Facebook have implemented location-based compensation policies to adjust tech wages. So, tech workers who plan to relocate will get a salary adjustment depending on their current location. Several companies are also looking forward to providing added compensation based on in-office perks that some workers will not enjoy.
Racial Biases and Discrimination Affecting Tech Wages
Many companies around the globe have already taken action to reduce racial biases and discrimination. But, according to Hired’s 2020 State of Salaries report, existing initiatives aren’t significant. There’s a substantial gap between white tech professional and their Hispanic and Black peers. For example, a white web designer would be offered a higher salary than a Black peer with the same role. Ageism is another threat to the tech industry. Hired’s report shows how wages provided to individuals over the age of 45 are becoming stagnant and sometimes may decline. There’s still a lot of work to do, but, hopefully, pay parity can be achieved in the next few years.
When it comes to job security, tech talent is maintaining cautious confidence. Due to the coronavirus pandemic, the world is facing a future full of uncertainty. Nevertheless, there’s no shortage of articles saying that tech giants are not surviving but thriving in the era of coronavirus. In reality, things may be more complex, and Hired’s survey demonstrates how tech talent is split on job security. According to Hired’s data, 42 percent of surveyed individuals are concerned that they might be laid off in the next few months. Hired’s report also shows that most tech workers are very confident that they will receive a pay increase in the following months. In fact, 49 percent of tech employees expect to get raises up to 20 percent.
Expectations Affected by Ineffective Initiatives
Tech employees’ expectations have also been affected by existing equity, inclusion, and diversity initiatives. According to Hired’s State of Wage Inequality report, over 60 percent of the time, women expect lower salaries than their male counterparts when applying for the same job. The same happens when we talk about race and age. For example, Black and Hispanic tech professionals have lower expectations than their white peers. And according to Hired’s data, their preferred salary is between $4,000 to $9,000 less than white professionals’.
While companies around the globe keep investing in new technologies, tech salaries will continue to grow. However, they might become stagnant in the next few years once tech companies start implementing location-based policies.
Day after day, more tech employees are asking for remote positions. In that case, if tech companies seek to increase employees’ engagement, they must embrace remote work as a new working style. Otherwise, attracting and retaining talent may become a nightmare. Also, pay parity will only be achieved if companies start to create new hiring standards and allow tech employees to be compensated for the actual value of their work.