How Covid-19 Has Impacted Tech Employees' Salaries
The coronavirus pandemic has changed from the way we live to the way we work. Because of coronavirus-related restrictions adopted by several countries, remote work has become the new standard. After the coronavirus lockdown, most companies began to look for candidates with exceptional tech skills in fields like web development, software engineering, and data science. Over the years, tech salaries have continued to grow. Since offices closed, tech workers' wages are skyrocketing. Stats provided in this article are from the 2020 State of Salaries Report published by Hired.
The tech market is growing fast, and doubtlessly, new technologies have changed the way we live. They are helping companies take big strides. Nowadays, tech is everywhere, and it has made our lives much more comfortable. As a result, in the last decade, tech employees' wages have grown consistently in every major market around the globe.
In 2019, the global average salary for tech employees was $130,000 per year. Many decided to break into tech in order to join the six-figure salary club and improve their lifestyle. Online coding bootcamps have become very popular, and several have visited websites like Career Karma to find the best coding schools in the market.
On the other hand, for US tech workers, salaries were higher. With a market average of $146,000 per year, US salaries are among the highest salaries worldwide. Nowadays, the San Francisco Bay Area still leads the tech world in wages. With a typical salary of $155,000 per year, it reported a 7 percent increase over the last year. Hired's report shows a clear growth in tech salaries and how every tech industry worker saw steady gains. From data scientists to software engineers, they all experienced a pay raise.
After the Coronavirus Lockdown
The coronavirus lockdown made companies struggle to survive. However, tech employees played an essential role in helping startups and even top-notch companies move forwards. The world is still adapting to the “new normal”, and companies are willing to hire even more remote workers. Remote work has shown to increase organizations' productivity and employees' job satisfaction. Given that, most workers would prefer to keep working from home instead of going back to the office.
Since remote work enables employees to work from any place, many thought about relocating. Many decided to move to a city with a lower cost of living. As they could keep the same salary, their net earnings would be higher. Although it can become a reality for some, some companies have already taken action. Facebook, for example, is planning to adjust tech salaries depending on employee location. So, if you move to a city like Denver, you'll have a Denver salary.
Racial Bias, Ageism, and Discrimination
Although remote work allows companies to diversify like never before, Hired's report demonstrates that there's still a substantial wage gap. For example, a white software engineer is more likely to have a higher salary than a Black software engineer with the same skills and position. The wage gap also exists between Hispanic and white tech professionals. Hired's report also shows that salaries of individuals over 45 years old may become stagnant and often decline.
According to Hired's 2020 State of Wage Inequality, male tech professionals are also more likely to be offered higher salaries than women. There's no doubt that the diversity, inclusion, and equity initiatives taken by several companies worldwide aren't making a meaningful impact.
Expectations have also been affected by Covid-19, remote work, and new philosophies. According to Hired's report, black and Hispanic tech employees have lower expectations than white professionals. At the same time, women's expectations are also lower. Sixty-five percent of women would ask for a lower salary than male individuals with the same skills and job title.
There's still a long way to go through to overcome existing barriers and achieve transparency in the market. Thanks to articles like Hired's report pay parity may be achieved soon as it fuels awareness in the workplace. Remote work is gaining more ground day after day, and companies will keep implementing new philosophies to meet workers' needs and adjust salaries. Tech has become essential for companies’ operations. In that case, there's no doubt that wages offered to tech talent will keep growing in the next few years.