Have Compensation Rates Been Affected by The Pandemic?
As 2021 begins, maybe your company is still crafting tech staffing plans for the upcoming year? After all, employing a talented team remains an essential part of successfully competing in the modern business world. But an important question exists: how did the Coronavirus pandemic affect IT compensation?
Remember, any effective staffing plan takes into account the salaries you need to pay to hire (and retain) experienced technology talent. With an effective planning effort in mind, here’s a quick analysis of how COVID-19 influenced IT salaries. Leverage this information to hire the tech talent your company needs.
The Factors Influencing IT Compensation in a Post-COVID World
Many companies employing IT professionals implemented work from home policies in the wake of the pandemic. Surprisingly, these organizations discovered their workforce stayed as productive as they did before COVID-19. In fact, some even saw increased productivity, as employees didn’t have to spend time commuting between home and work.
This newfound working model potentially saves companies in corporate real estate costs. At the same time, expect larger candidate pools for IT positions as companies no longer need to restrict themselves to in-market candidates. This is especially helpful for certain in-demand skills, like cybersecurity.
Tech Salaries Based on Where Remote Workers Live?
Some pundits expect Silicon Valley-based companies, as well as others located in high cost-of-living regions, to offer lower salaries to remote employees. In fact, offering compensation based on where a remote candidate lives are predicted to grow in popularity.
Will this trend cause companies to prefer talented tech pros located in the middle of nowhere? Still, others predict paying IT professionals in similar roles different pay rates might lead to poor employee morale.
Telecommuting is Likely Here to Stay
Ultimately, working from home isn’t a new trend. For years, IT companies have leveraged telecommuting as a perk to attract talented candidates. COVID-19 only made this longer-term trend the new normal.
In the end, companies hoping to source and hire the best need to consider a salary policy for remote workers. Basing compensation on the company’s location, the remote employee’s location, or the national average remain the three most obvious options.
Remember, it’s still a competitive market out there for in-demand technology talent. Generous compensation and a robust benefits package are required to make a successful hire. The pandemic just made the compensation process more complex. Make sure your company’s 2021 staffing plan takes this into account.
If your company needs help building a tech team in a post-COVID world, speak with the experts at Digital Prospectors. As one of the top IT staffing agencies in Boston, we provide great candidates able to make a positive impact on you. Connect with us soon!