Predicting every single change technology is causing is a difficult task. There is a myriad of forces changing how the workforce operates at any given time. However, technology isn’t the only factor in changing how people work. Remote work has become incredibly prevalent amidst the pandemic and it is changing everything about how work is performed.
With that in mind, one of the areas being affected by remote work the most is tech salaries. While it may not seem like it upfront, remote work has its pluses and minuses. Many of these benefits, as well as setbacks, directly affect tech salaries.
According to SHRM, location is one of the leading factors in determining salary levels for non-executive positions. Tech jobs already pay high salaries, but they used to earn more than most traditional jobs due to where the job was located. In the past, this was Silicon Valley which tends to have higher expenses overall.
Ratio between cost of living and salary in three different locations. Increasing the ratio means increasing your disposable income. Based on data from salary.com
As it is in the employees best interest to optimise income/spend we will start seeing massive shifts in the labour market. Nowadays, remote work is enabling tech workers to tackle their job from wherever they’d like. This means that higher salaries offered to counteract high costs of living may actually go away. Therefore, tech salaries may see a slight decline in salary levels due to this lack of office space for workers.
At Talent Data Labs, we index and rankcan tell you just how vulnerable organizationsyour companiescompany may be to these changes and how to avoid getting caught off guardup in those disruptions. Knowing how many of your employees may be at risk of churning this potential pay cut is half the battle of preparing for this new realitydisruption. On the bright side, there’s also room for opportunity and attracting new talent in new jobs.
New Job Openings
As remote work begins to take off, new career paths will inevitably make themselves known. This is a natural part of creative destruction which occurs whenever there is a widespread disruption in the workforce. As a whole, the new jobs that emerge to replace older tech jobs will likely offer higher and more competitive salaries that will attract experienced tech workers.
This is why attending coding bootcamps has become such a popular choice in the last few years. Learning tech skills now is becoming more important than ever. While some jobs may disappear, it is inevitable that the new jobs set to emerge will use certain skills from older careers.
Coding is an example of one of these skills, and picking it up now from a coding bootcamp or trade school is a smart choice. Doing so may help any tech worker earn a higher salary solely based on the fact that they possess such a skill. To find a trade school or bootcamp near you today, try visitingvisit Career Karma and take your first step to level up your salary.
Different Education Leads to Different Salaries
People are being educated in new and fascinating ways like never before. Trade schools and bootcamps are two examples that have taken hold in recent years alone, but they are just the tip of the iceberg. Reports actually show that trade school attendance is beginning to rival that of university and college.
These alternative forms of education often teach students unique skills that are applicable to one career path. This makes graduates of these sources highly specialized. An added benefit, however, is the fact that these graduates are used to remote learning and work, which means they can succeed in this new format. Overall, different educational backgrounds will lead to different salaries. If the skills being taught are more useful than other sources, then the salary levels of those employees will reflect this.
As a whole, technology is a driving force of change that is affecting every industry on the planet. Ironically enough, technology-enabled remote work has allowed the workforce to survive amidst the coronavirus pandemic. This new form of work is set to disrupt the workforce in new and potentially exciting ways that we have never been seen before. For the most part, disposable incomesalaries may be beneficially impacted in the tech sector, but only time will tell the true tale. Until then, the best that can be done is to stay ahead and actively analyseactively monitor and speculate on how the coming workforce changes. will change everything about the workforce.