The Coronavirus pandemic spawned massive changes throughout the business world; both in the United States and across the globe. The largest transformation is the switch to remote working, as employers closed offices due to the spread of COVID-19.
This transition might become permanent, with many tech companies maintaining or improving productivity levels with a remote workforce.
The pandemic and remote working also caused a change in the practice of IT salary negotiations. Is a smaller salary now required with employees able to work in areas with lower costs of living? Let’s take a look on the influence of the pandemic on negotiating technology salaries.
The Influence of Remote Work on Technology Salary Negotiations
As noted earlier, remote working means technology professionals don’t need to live in areas with higher costs of living. These regions include typical IT hot spots, like Silicon Valley, New York City, or even our own Boston. If a company located in one of those areas pays the same salaries, remote workers potentially enjoy higher pay.
This is a major reason certain large technology corporations want lower salaries for employees working remotely. They also consider the fact those employees no longer need to pay expenses related to commuting. At the same time, those remote workers now incur costs related to home offices and potentially high-speed Internet service.
Importantly, a recent survey of salaries noted that IT remote workers typically earn more than their in-office counterparts. Notably, that same survey revealed remote workers enjoy higher levels of job satisfaction compared to those working in the office. Subsequently, this also led to an improved ability to retain those workers over time.
Companies Don’t Want to Lose Their Top Technology Talent Amid COVID-19
Another post-pandemic survey of tech employers revealed 86 percent are as likely or more likely to negotiate salaries. The reason for this remains simple. They don’t want to lose their best technology talent. With talented tech pros now available to work remotely for any company, expect competition to increase.
At the same time, businesses now enjoy a wider candidate pool, which is a boon for in-demand positions, like cybersecurity analysts. In the end, if you want to successfully hire and/or retain exceptional technology professionals, offer a generous compensation package. It appears this golden rule matters even more in the wake of COVID-19.
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