Why Tech Giants Are Meeting Virtually For The Long-Term
Tech Giants are Shifting Thousands of Employees to Remote Work.
The global COVID-19 pandemic is showing no signs of being resolved anytime soon. As a result, tech giants have been forced to explore new remote working possibilities for their vast workforces.
Twitter is giving its employees the option to work from home indefinitely, regardless of whether it’s safe for them to return to the office. Facebook wants over 50% of its staff to work remotely within the next 10 years. Even Shopify has announced plans to cement their current virtual/remote work situation.
So Why Are So Many Tech Businesses Making the Switch to Remote Work?
Tech Salaries
A shift to a completely remote working tech industry would have a significant impact on employee salaries. Facebook is among the companies considering localized compensation, where an employee is paid an amount that is dependent on where he or she is located in the world.
‘Hired,’ a hiring platform, conducts research and creates tech salaries reports based on data that it collects from countless amounts of job offers and interview requests.
Pre-COVID-19 saw a general increase in tech salaries worldwide, with an average annual salary of $130,000.
Even far into the pandemic, tech salaries have remained unchanged, for now. Hired also conducted a survey where 40% of tech workers believe that their salaries should be adjusted as per the cost of living.
Political Benefits
The tech industry’s culture and base in coastal states such as California, Seattle, and New York have created a political divide. Ro Khanna, a U.S. representative from California’s 17th Congressional district, recently cheered on the shift that tech companies are taking.
According to Khanna, “This is a game-changing proposal, and I applaud Facebook for taking this step. Regardless of where they live, all Americans should participate in the digital revolution,” said Rep. Ro Khanna (D-Calif.). “It should not have taken COVID for us to realize this, but I’m glad that tech companies like Facebook and Twitter will allow people to work remotely and not have to move for a good-paying job in tech.”
Expanded Talent Pools
Other cities can win in this scenario. Currently, most of the tech industry’s talent is concentrated in specific hubs, including Silicon Valley. This comes with disadvantages in that companies are held back from accessing the best talent the country or the world offers.
A permanent shift to virtual work would allow big tech companies to tap into talent pools in cities in the United States and worldwide, which would lead to greater cultural and racial diversity.
Cutting Costs
For years tech giants have been offering incentives and benefits to its employees. Employees who work in Silicon Valley get more than just a basic office setup and a salary. Benefits included free lunches, on-site massages, and chiropractic treatment. Employees also get access to spaces such as Silicon Valley: Apple Park and the Googleplex that are as large as entire theme parks.
Google has been reported to offer three meals a day and a $6,000 a-year amount that the employee can use towards his favorite charity. Facebook offered $10,000 towards adoption fees and $20,000 for surrogacy, among other options. With employees out of the office for the long-term in many big tech companies, office-perks are expected to be cut down significantly.
‘Hired,’ a hiring platform, conducts research and creates tech salaries reports based on data that it collects from countless amounts of job offers and interview requests.
