Permanent remote work
is not typically considered by most companies, even in the tech sector. There
are great risks that come with this especially for firms that handle highly
confidential data. Nonetheless, shifting to remote work has become apparent
when the coronavirus pandemic hit.
Work from home is
particularly viable for tech companies. Since most of the work is done in the
digital space, the transition to full-time will be flexible. However, this
comes with several considerations related to collaborations and salaries.
With the entire world
trying to adjust to the aftermaths of the pandemic, tech companies are weighing
in on how best to compensate their employees. There is now talk of shifting to
permanent remote work after the pandemic.
Shift to Remote Work
Before and During the Pandemic
Apparently, in the
past decade, the shift to remote work rose by as much as 400 percent. According
to a study by GetApp, the
ease of remote work is made possible by fast Internet connections, evolved
mobile devices, and cloud-based storage.
When the coronavirus
pandemic hit, remote work made for an even better working arrangement. Given
the nature of the virus, companies just cannot risk employees’ health. Thus,
remote work became the ‘new normal’.
Remote Work In the
Experts believe that
even after the pandemic ends, the option to
work from home is here to stay. The tricky part, however, has a lot to do
with salaries and compensation.
Based on the US Bureau
of Labor Statistics, tech salaries can range from $50,000 to $122,000 as of
2019. Some companies can provide as much as $155,000 annually. Software
engineers, for example, make an average of $108,700 in the US, while data
scientists earn a median income of 108,200. With the aftermath of the
pandemic, some employees are willing to settle for less as long as they can
permanently work from home.
A study by Hired
showed that about
53 percent of their 2,300 tech worker respondents are willing to move to
cities with a lower cost of living. Some companies, however, do not believe
that remote work should be permanent despite its cost-cutting appeal.
Tech Salaries During
In 2020, many
well-known tech companies such as Twitter, Facebook, and Amazon are looking at
permanent remote work for the majority of their staff. Facebook announced that
it is looking at adjusting employee compensation based on their location.
Localized compensation would follow the minimum wage of the city where an
employee lives. Employees would now have to declare where they are so that
their salaries will be adjusted. With all the different considerations, what
could this mean for tech salaries?
Appeals of Permanent
salaries, there are employees willing to take it. Permanent remote work means
reducing daily expenses such as food or transportation. It also pushes some
people to move to cities with lower costs of living.
There would be no
change in productivity because the work of a tech firm is all in the digital
space. Companies do not need to worry about workflow disruptions compared to
other traditional jobs. Working from home also makes hiring talent from
different parts of the world much easier. Instead of spending on visa
requirements, tech companies can channel their funds elsewhere.
Permanent Remote Work
Remote work also comes
with a set of cons that tech companies need to consider. Some CEOs of tech
companies are not sold on the idea of permanent remote work. For them, being in
the same space leads to better collaboration and outputs.
cybersecurity and data privacy are also of concern. This is especially true for
developers working on top-secret projects. Working at home might not be as
secure against hackers and opportunists.
Health Risk as a Main
For now, with no
vaccine available, health risk is the main concern. Some employees are not yet
allowed to go back to the office even if they want to. Hence, localized
compensation still needs to go through a lot of deliberations. With the current
situation of the world in the coronavirus pandemic, remote work is indeed the
Tech Salaries in
Compensations in the
tech industry remain relatively higher. The work that the tech industry puts
out enriches the digital world and its users. At the end of the day, tech
salaries must measure up to the quality of the outputs that employees put out
regardless of their location. To learn more about anything tech, visit Career Karma, where you will be able to
expand your knowledge about a career in tech.