Remote work is bringing equal startup salaries across the United States and across the country, including Silicon Valley and San Francisco as the standard as well as Seattle as an example.
One of these insights comes that comes from the latest study conducted by the company that makes financial technology Carta Compensation packages offered by tech startups within the Seattle region are now comparable to the ones in areas like the Bay Area, after increasing 3 percentage points over the last year.
“As remote work is now a more common expectation for 2022, wages are beginning to increase towards metropolitan areas that are higher in the rankings,” explains Peter Walker the leader of the Carta Insights team in his analysis of the results.
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Many factors have contributed to this convergence. Walker suggests: Some employees have become remote, but they have retained their salaries. Certain companies with remote employees are looking for talent in various locations across the nation instead of just their states of residence.
Walker says “This trend is likely to continue and could have a profound impact on employees in the tech field as well as executives of companies seeking to make their next major hires.”
For instance, he states that certain startups could begin hiring outside of significant U.S. tech hubs, and internationally, as compensation is converged across the United States.
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This trend is particularly evident in the West blurring the distinctions of Silicon Valley and Seattle, and further enhancing the idea of an expanding West Coast “megalopolis.This trend has been driven partly by the growth in the number of Silicon Valley engineering outposts in the Seattle region in the last decade.
Axios Seattle was the first to have reported on Monday morning about Carta’s findings of the newfound parity in pay in Seattle as well as Bay Area startups.
Remote hiring is a major driving factor in the field, with 62% of all new hires occurring in states that are not a company’s headquarters which is up from 35% in 2019. according to data from the companies that were included as part of the Carta study.
Despite this convergence in technology-related pay across countries approximately 84% of employers take into consideration geography in determining compensation, and are making adjustments for the variations which do exist.
The economic recession and inflation make for a complex stew. The study reveals the effects of belt tightening and layoffs throughout the tech industry In the tech sector, 29% of layoffs from May 20, 2022, were voluntary terminations which was up from 15% in August 2021.
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Carta was previously called eShares was an American-based company which develops software to track and managing equity in companies which includes stock compensation as well as cap tables. Carta claims that it built the study on 127,000 employee records of companies using its platform for compensation management.
