Remote work is a surprising outcome of the coronavirus epidemic. Companies quickly made the switch from congregating daily in the office to staying at home and interacting virtually. Employers and employees enjoyed the changes so much a handful of companies decided to let their employees work from home permanently, even after it is safe to return to the office. The switch to remote work takes away the perks of unlimited snacks and micro kitchens, but working from home has its perks too. As remote work becomes more mainstream, companies and employees both have ideas about any changes to salaries.
Overall, tech companies are leading the charge for the adoption of remote work. Other industries are as well. The Ohio based Nationwide Insurance is allowing employees to adopt remote work. REI, the outdoor company, went as far as selling its brand new campus, citing employees’ productivity at home and opting for smaller remote workspaces to lessen the carbon footprint of transportation to and from work.
Tech workers accept location-based changes to their salaries but are mostly expecting raises at the end of the year.
Tech Employees Are Expecting Raises
Regardless of where they live, employees for tech companies or tech roles, are expecting raises just like any other year. Product managers, software engineers, data scientists, and web designers have received the highest raises of the past three years. These employees are expecting raises this year as well. Those in the San Francisco Bay Area earned $155,000 on average and received an average raise of 7 percent. The high cost of living in the Bay Area, one of the highest in the nation, is a driver of high salaries.
Like other parts of the tech industry, raises aren’t equitable across demographics. Ageism has an ugly role in tech salaries. Salaries plateau after the age of 40 along with desired salaries and salaries of new hires over 40. Career changers graduating from top coding bootcamps are hoping to cash in on the growth of tech jobs and salaries. Employees feel split about job security and the fear of being laid off in the next six months.
Employees Will Go To the Office Less
As remote work is more widely accepted, employees are planning on pursuing a hybrid model where they travel to the office one to two days per week; only 7 percent indicated they wanted to be in the office five days a week. This dramatic shift from pre-Covid-19 is changing the way companies work.
Employees who want to work remotely are still adjusting to the change in scenery. Covid-19 has forced employees to work from home, but they still have kids to figure out. Employees are taking less time off because of the pandemic. The virus has caused many changes in our daily lives, and with the availability of remote work, employees are considering heading out of the state. It is becoming fathomable for non-Californians to apply for jobs in California tech companies even if they live across the country. A Chicago coding camp appears more appealing if graduation means a shot at a California tech salary.
Employees Consider Next Moves
The exodus from California can be measured in multiple ways. Rent prices are drastically lower than the beginning of the year as fewer residents renew their leases. Texas, a growing tech hub, is receiving over a million Californians a year, even before the pandemic. There is a vast difference in earning a $100,000 salary in San Francisco compared to Texas or Florida. The taxes, cost of living, and housing prices are all much lower than in California. Most tech workers believe that the pay should be the same as long as the work is the same. However, more are comfortable with location-based adjustments.
The abrupt changes in the work environment make each person’s situation different. Not all tech companies are thriving during the pandemic at the rate of Amazon, Google, and Apple. Tech unicorns that recently went public have cut thousands of jobs as the low number of travelers has impeded the use of Airbnb and rideshare companies.
The changes from Covid-19 will be felt long after the virus has a vaccine. If you are wondering whether coding bootcamps are worth it because of the potential lowering of salaries for remote work, consider that tech salaries are among the nation’s highest and continue to grow.