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How Remote Work Is Changing Salaries in the Era of Coronavirus
3 min read

How Remote Work Is Changing Salaries in the Era of Coronavirus

This is a guest post by CareerKarma.com

Remote work will be one of the lasting changes of Covid-19. Working from home was sparingly used by companies before the pandemic, but the ability to work remotely might be something more new hires ask for. Companies large and small are embracing work from home to prevent the spread of the virus. Employers and employees were surprisingly well prepared for the switch to remote work. Coming to the office only continued because it was how offices had been structured for ages. The acceptance of remote work will create new and interesting opportunities for both employers and employees.

Change always has its consequences. The consequences of remote work might not be obvious right now, but there are reports that remote workers actually get paid more. The report by PayScale.com showed that remote workers earned higher than the median by a margin of 8.3 percent when controlled for a particular position. The survey consisted of over 450,000 professionals in all industries from June 2018 to May 2020. In particular, the two-year study found that remote technology workers earned nearly 40 percent more than their non-remote technology peers. That's comforting news for anyone looking to get a tech career.

Remote Work Increases Job Competition

The option for remote work might mean that companies can hire outside of their geographical region. This will increase the quality of the pool of applicants. HR managers might be looking through more resumes than normal, but the number of high-quality candidates will increase. Commute conscious employees in the same city will consider applying to new roles that won't require them to commute.

Employees have gotten used to the luxuries of working from home, and even if they aren't 100 percent remote, they will expect more flexibility in their work setting. The flexibility of working from home, even partially, will attract more top tier talent. Professionals can continue to live in the places they are comfortable while working for companies that provide the challenge that most engineers are looking for. A wider applicant pool will increase the diversity of applicants with advanced degree levels.

Tech Companies Want the Best Talent

Tech salaries are already higher than the national average, but competition is fierce to hire and retain top tech talent. Executives and top engineers often jump ship to get a larger paycheck, work for a more influential company, or create a startup of their own. Compensation is one of the most alluring ways to attract new talent or keep top software engineers.

Remote work might help companies reduce the risk of hiring new talent. Tech companies generally offer generous relocation packages for even lower-level hires. Relocating employees isn't a cheap endeavor. Companies will save millions of dollars by letting new hires work without moving. There are some hidden costs to employers that come with remote work—paying for employee Internet, enhancing security features with VPNs or software, video chat subscription, and ways to measure employee productivity. These expenses are probably already a part of the budget, but they might balloon as employees spread out. The top talent might need these perks to be convinced to transition to a new workplace.

You Can Still Earn Skills to Get a Tech Job

It's not too late to get a tech job that will pay you more to work from home than your current job does while you're in the office. Tech jobs have a great outlook for growth, and part of the reason they pay so well is that tech and non-tech companies are vying to offer the most advanced services to their customers. Just as work went online during Covid-19, so did consumers. The easiest to use services will often attract and retain customers faster than their peers who don't incorporate tech into their business plans.

Tens of thousands of people are changing careers to become tech workers by attending the top coding bootcamps. Coding bootcamps offer students the ability to quickly build from zero coding skills to a portfolio worthy of landing a tech job. These bootcamps boast ridiculously high hire rates and even have partnerships with top tech companies like Google, Amazon, and Facebook.

Conclusion

Remote work is a great way to earn a higher salary working for a desirable company. Remote work will increase the competition for these jobs as local and non-local talent want the flexibility that remote work offers.