Remote Work Sparks Tech Salary Revolution in the Covid-19 Era

Remote work is rapidly becoming a more popular option for tech workers across the United States and the entire globe. Most tech workers have the privilege of working from anywhere in the world. Many of these workers have said that they would want to keep working from home long after the Covid-19 pandemic has ended. There are many benefits of remote work that you can't get from working in an office but it is not without its disadvantages. Right now, Silicon Valley tech workers are at risk of a significant change in salary structure directly because of remote work. 

Silicon Valley, Covid-19, and Remote Work

Silicon Valley is the crown jewel of the United States tech industry. Silicon Valley firms set the stage for innovation for other cities in the country and across the globe. Most tech workers in the United States work in Silicon Valley and they earn a lot more than other workers because of their location. Shortly after the coronavirus became a pandemic, the United States issued a nation-wide lockdown. Only providers of essential services like healthcare and food could continue operating, as long as they followed some precautions. 


In many other industries, remote work was next to impossible. The case was different for tech. Major companies in the San Francisco Bay area simply changed their working structure to accommodate remote work. This allowed these Silicon Valley tech workers to keep fending for their families despite the Covid-induced economic downturn. Tech companies have developed infrastructures that made things easier for all their workers who are completing daily tasks from their homes. 


Twitter announced that they would no longer be returning to the office. All their workers will eventually have to work from home post-pandemic. Facebook announced that they want 50% of their employees to be remote workers even after the pandemic is over. Many other companies have made similar provisions that allow workers to choose whether they want to work in the office or not.

taipei at night

Remote Work and Relocation

Since remote work became the norm in Silicon Valley and many other parts of the United States, tech workers have been fleeing the Valley. Silicon Valley tech workers earn way more than other tech workers in the United States. Their salaries also come with huge bonuses and other special benefits that you can't find anywhere else. Unfortunately, the cost of living in Silicon Valley is rather high. You'll spend too much money surviving in the Valley and have little left for savings. Some of the entry-level workers can no longer afford to stay there and have decided to relocate to cheaper states. 


Since the Covid-19 restrictions allow these tech workers to work from home, many of them don't see the need to stay in California. They have decided to move to more affordable cities in the United States while they keep working for Silicon Valley tech companies. By moving to a place like Texas, a Silicon Valley worker can save thousands of dollars yearly on rent and other expenses. However, tech companies don't think this is fair.

Leave Silicon Valley and Face Salary Cut

In March, Facebook announced that those workers who want to move to more affordable places on a more permanent basis can go if they accept a 10% salary slash. Facebook isn't the only company that is going to cut tech salaries. Other companies are following suit and drawing up new contracts for remote workers. VMware is going to remove up to 18% of workers who choose to move to Denver. Many others have made their intentions known regarding remote work salary slashes. 

Silicon Valley is the gold mine for tech talent in the United States and they usually set the example for other cities to follow. There is a strong chance that the decision of Facebook and all the other tech companies will spark a revolution of tech salaries in the United States. It might even affect how tech workers are paid in other parts of the world. It is already disrupting the relationship between these workers and their companies.

taipei in images

CONCLUSION

Despite the salary slash, workers are still fleeing the Valley to different parts of the US, especially Texas. Even some tech companies have decided to relocate from California to Texas. They claim that California doesn't have favorable policies for businesses. Elon Musk cited a similar reason when he decided to move from his home in the Valley to Texas. However, the tech industry in California remains the hottest in the country and people there continue to learn web development in online bootcamps. A nice place to start is Computersciencehero.com
 

 

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