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Guest Post by Career Karma

What Does Remote Work Mean For Tech Salaries

Working from home is the new trend for employees. Remote work used to be a luxury. Now it has become a standard way of working for tech employees.

Tech companies built sprawling campuses aimed at giving employees all of the luxuries their employees had at home: deluxe espresso machines, gym memberships, showers, and sushi stations for lunch. There is no doubt these are cool to have in an office, but many of these amenities are enjoyed more at home. Tech employees made this a realization when COVID-19 forced them to work at home.

The temporary “setback” for working from home turned into a relatively productive workspace that employees craved. Employees around the world enjoy remote work and some are even willing to take a pay cut to stay at home.

In a world where it seems people are always looking for their next raise or promotion, taking a pay cut seems counterintuitive. This leaves the question: If productivity isn’t changed, why would anyone take a pay cut? What incentive is there for a company to offer less pay to employees who don’t require as many amenities?

Who Saves More?

An overlooked expense of working in an office is the cost of commuting. Carpooling, rideshare, public transportation, and personal cars are costly ways to get to work. Cutting the costs of commuting can save upwards of hundreds of dollars per month.

But there are added costs, too. Creating a functioning office space isn’t cheap. Some employees might be blessed with stipends from their employers for a cool office setup, but this is by no means guaranteed. Being at home means that all the LaCroix and Kind bars you consume come out of your pocket. The same goes for lunch and coffee. These small costs add up.

On the other hand, employers have the potential to save thousands per employee. Leasing office space is not a cheap venture. If 50 percent of the workforce is able to work remotely, businesses would dramatically reduce their operating costs. There are savings hidden in the perks of remote work as well. Remote employees are happier, which leads to less turnover. Hiring and onboarding new employees at a less frequent pace is a cost saving venture that isn’t always clear on the ledger.

Remote work is here to stay, whether business like it or not. The future of remote salaries might depend on whose will is stronger. Employees expecting remote work might turn down a job offer that doesn’t permit remote or reduces the salary for remote work.

Salaries Will Become More Transparent

Pay has always been a touchy subject for co-workers. The inexact science of determining pay often depended on when you were hired and how hard you negotiated. It’s not uncommon for a more qualified employee to be paid than their peers because they didn’t negotiate.

Transparency will help employees, even before they’re hired, determine how much they will make and the exact standards for promotion. Transparent pay isn’t a new idea, forward thinking companies like Buffer and Stack Exchange have employed transparent pay scales for almost a decade.

Location is one of the biggest factors of remote work. Tech employees are leaving densely populated and expensive cities cheaper, less congested cities. Location-based salaries are the most equitable way to ensure employees delivering the same quality work are paid the same, even if there is a ten-thousand-dollar difference. $90K in Kansas City will get you far more than a six-figure-income in San Francisco. In short, location matters.

Should I Stay Or Should I Go?

Remote work has plenty of perks that aren’t necessarily visible on the ledger. There are health benefits to not spending hours out of each day commuting. Working at your own pace or having a flexible schedule also leads to a healthier work-life balance. If you enjoy remote work, you can find a company and position that aligns with your work style.

Employers benefit from remote work too. The ability to work remotely and the salary you get to do so can be negotiated if there isn’t already a pay scale. Do your research to find the situation that is most beneficial to you!

You Can Work From Home Too

If you want to be a tech worker that can work remotely, you can learn the required skills to gain entry-level employment in the tech industry by attending a coding bootcamp. They are work, but the reward of working from your home or apartment is well worth it.


During these trying times, PMInc decided to accept a guest post by Career Karma, which discusses various methods for working via Freelance.
The views and policies listed in the blog post and it's links do not necessarily represent the views of Personalized Marketing Inc.