Are Developers Salaries a Bubble? If Yes, Then How Bad Could it Burst by@Giorgi-M

Are Developers Salaries a Bubble? If Yes, Then How Bad Could it Burst

Giorgi Mikhelidze HackerNoon profile picture

Giorgi Mikhelidze

I'm a beginner Software developer from Georgia with a big love for all things blockchain!

Work-from-home options were made permanent in 2020 by companies like Apple, Google, and Microsoft. Ironically, companies that were formerly recognized for creating work environments that felt like homes for their workers are now relocating to more traditional housing types in order to save money.

Facebook (Meta) is leading the drive for a permanent work-from-home scenario. To begin, it plans to hire more remote workers while also letting its current employees work from home as long as they like.

According to a second factor that is directly related to its rapid adoption of remote workers, remuneration for remote workers will be changed depending on where they live. Employees in Silicon Valley who left the expensive metropolis to save money are particularly hard hit.

It's not just Facebook. Since then, a number of other IT firms have declared that they would follow suit. As a result of the epidemic, Twitter has accelerated its own move to remote employment, which the company says has been discussed for over two years.

It includes the localization of pay as part of its strategy. Twitter, on the other hand, was keen to emphasize its "competitive" attitude in implementing the policy to the tune of extra days off plus the allowance of $1,000. Twitter employees.

Similarly, workers at the software business VMware are being offered a similar deal. Employees who accept the company's offer should expect to lose between eight and 18 percent of their yearly compensation.

Shopify workers in Canada are likewise not anticipated to return to work very soon, if at all. Tobi Lutke, Shopify's founder, said that the company should be able to continue its operations even if it shifts to a remote work environment. "Office centricity is finished," he said. To add insult to injury, Shopify has yet to make a decision on whether or not to implement pay localization.

Remote employment is reshaping the IT sector on a massive scale. It's also obvious that the burden of these shifts will fall on the shoulders of IT workers. As a result, opinions on the impending implementation of the new pay system are divided. However, before we get to the answer, let's have a look at the typical salary for computer experts.

Salary Bubble

Six-figure salaries are the norm in the IT business, not the exception. Google's software developers, for example, make between $120,000 and $318,000 a year on average. There is a total pay plan of $179,000 to $1,350,000 if bonuses and stock options are included.

According to Glassdoor, the average compensation for a front-end developer in Toronto, Canada, is C$68,000 (about $52,000). Meanwhile, data scientists are paid between $95,195 and $185,500.

Tech workers make more money than the majority of other job seekers combined. When data was first introduced, it immediately became a critical component of a company's success. Competitive advantage may be gained via the proper use of data.

The need for skilled technologists has also expanded as a result of the increasing value of their services. As a result, the IT sector has had to contend with a lack of skilled workers because of the inelastic nature of tech jobs. Putting two and two together, we get a shortage of competent workers and a strong demand for them. Because of this, the actors get paid a lot of money.

The formerly six-figure incomes may have to take a blow as a result of the virus-induced remote work environment.

Mixed Response

Blind, an online workplace community for computer workers, ran a study after a slew of announcements about salary adjustments. Would you accept the trade-off (i.e., lower salaries for a permanent work-from-home arrangement) in this new Covid-19 future?

Thirty-eight percent of Facebook employees stated they were open to moving despite the company's recent layoff announcement. When it comes to work-life balance and costs, 61% of VMWare workers stated they would be prepared to give up some of their compensation in order to have it. 47 percent of Twitter pros share their sentiments.

66 percent of professionals answered "yes" when asked this question in a larger context. In other words, if you can afford to relocate out of the tech hotspots of Seattle, New York, and San Francisco, then do so. The benefit to them considerably outweighs the cost.

According to a Hulu employee, the policy is nothing more than a form of labor exploitation.

A key tenet of the respondent's argument was that wages aren't affected by where a worker is located. Regardless of where one is in the process, one's output, both in terms of quality and quantity, remains consistent. There was merely a shift in the way that work was done.

Results of a survey conducted through Twitter by Jeremiah Owyang, the founding partner of research and consultancy business Owyang Research, followed. Is it possible to work from home for the rest of your life if you accept an offer that comes with a 10% salary cut? A whopping 44% of those who took the poll said yes. Many stated they would either continue working at the workplace or look for a new position.

Giorgi Mikhelidze HackerNoon profile picture
by Giorgi Mikhelidze @Giorgi-M.I'm a beginner Software developer from Georgia with a big love for all things blockchain!
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