The Myriad Ways Remote Work Has Influenced Tech Salaries During The Pandemic

Covid-19 has had a disastrous effect on the workforce. Millions have been either fired or furloughed, and the jobs that are returning are doing so at a remarkably slow pace. With this in mind, certain career paths have seen changes to their salary levels for both good and bad. One such area is tech professions.  

There has been talk lately that Silicon Valley could be moving to a different state, but remote work seems to have put that discussion on the sideline for now. Interestingly enough, the Silicon Valley workers return to at the end of the pandemic may look nothing like it did a few years ago. 

Location 

With the ability to work from anywhere, new questions have been raised as to whether or not employee salaries should be adjusted for their new locations. In fact, the World Economic Forum issued a report that found there is going to be an expected 36 percent increase in work time outside of the office after the pandemic ends.

People who live in California and work in tech may potentially make more than someone doing the same job in a different state. After all, the cost of living is higher in California than it is in most other states. However, there are now people wondering whether that Californian’s tech salary should be cut if they work remotely from Colorado over the next five years. 

On the other side of the spectrum, there are those who believe that tech salaries should stay the same regardless of whether location changes. Professions such as cybersecurity are incredibly important in the tech world, and many feel that employers wouldn’t cut salaries out of fear of losing those employees to other companies. 

Employee Productivity

In the past, an incentive to complete your work successfully was the prospect of bonuses and the potential to either receive a raise or be promoted within your company. However, general productivity has seemingly declined amidst the global pandemic, which isn’t really a surprise at all. What is interesting, however, is the type of employee being affected by this decrease in productivity.

It seems that most tech professionals are actually doing quite alright productivity-wise because their jobs haven’t changed all that much. Granted, they are now working from home, but their actual day-to-day doesn’t look as different as some other jobs. For perspective, computer science is a field where the jobs can be done from virtually anywhere as long as the employee has a computer.  

Other jobs, such as some forms of marketing, require in-person components and extra effort that the pandemic has simply wiped out. It is completely possible that this adoption of tech occupations will allow employees to boast higher salaries. 

Competition

For all the bad Covid-19 has caused, there is one good thing that remote work has brought: diversification. With remote work potentially becoming the new norm for the tech industry, people from around the world may be able to work at a variety of companies and not be forced to relocate. 

The same trend has been occurring in the education industry, as trade school attendance has increased whereas traditional educational institutions have seen a slow decline over the last few months. With more and more people learning how to enter the tech industry and companies hiring from overseas and across the states, there will be increased competition for jobs that could result in higher salaries for the best of the best. 

Conclusion

2021 has been a disruptive year for industries all around the world and there’s no doubt about it. As the pandemic begins to wind down and 2021 fast approaches, the future of work has never been more up in the air. If remote work becomes a long-lasting norm, it seems everybody is split as to how it will affect employee salaries. For the most part, though, stark competition from a more diversified workforce is set to increase salaries in certain tech fields as more people from around the world have access to tech jobs. In general, it seems that tech salaries are going to move in both directions, depending on one’s specific occupation.