Covid-19 Provides Tech Experts With Rare Relocation Opportunity But There’s A Catch
Have you ever visited Silicon Valley in San Francisco? If you have, then you know that talks about the high cost of living in the Valley are not exaggerations. The only place in the United States that is more expensive than Silicon Valley is New York City. While other places in California are pricey, Silicon Valley is the most expensive. The Valley, which is now the primary hub for tech workers from all over the world, has limited housing options. At the same time, there are a lot of wealthy people living in the Valley who are willing to pay whatever it takes to keep their homes.
Tech Workers in San Francisco are Fed Up With the Rising Cost of Living
Over the last 40 years, the cost of living in the San Francisco Bay area has been on a steady rise. In the last 10 years, the cost moved at an unprecedented rate. Among other things, one of the primary reasons behind the rising cost of living in the high density of international companies in the region. Currently, there are more than 2,000 tech companies in Silicon Valley. This includes industry leaders like Google, Apple, Facebook, Hewlett-Packard, eBay, and many others.
These companies are flooding the Valley because of the competitive advantage and proximity to suppliers. However, as these companies continue to make Silicon Valley their home, they contribute to the high cost of living. These companies have the best tech talent from around the globe working with them and they offer lucrative salaries that are way above the national average.
Despite the attractive salaries of web developers and other tech experts, these tech workers are getting tired of spending almost everything they make just to live in Silicon Valley. Only high-ranking tech workers like project managers and CEOs can afford to buy comfortable homes in Silicon Valley. The average tech worker may not be able to save any significant amount of money after paying for rent, food, transportation, and everything else.
Covid-19 Has Presented Tech Workers With a Rare Opportunity
People across different sectors have been leaving the Valley because of the high cost of living. However, many tech workers continued to stay in Silicon Valley because of the attractive wages and benefits that come with working in most Silicon Valley companies. These companies give them the state-of-the-art luxury treatment that they might not find anywhere else.
Shortly after the coronavirus pandemic started, tech companies in Silicon Valley were forced to shut down temporarily like many others. The good news is that tech workers didn’t just stay at home without work or pay. They continued to work from home and they have been doing a good job at it. Many of these experts have taken advantage of this rare opportunity and are moving out of Silicon Valley to more affordable places.
Tech Companies Fight Back
The tech companies aren’t happy that their workers are relocating to work from home in other states. Many of them have promised to adjust the salaries of all those who relocate to reflect the cost of living in their new locations. Facebook has already promised to cut staff salaries by up to 10 percent if they relocate to other states. VMware has also said that they will be cutting the salaries of all remote workers. Likewise, Twitter has announced that they might be localizing wages of relocating staff as well.
VMware is threatening the most significant cuts. The tech company said that workers who move to Denver will have to accept an 18 percent salary slash. This is the price they will have to pay if they want to stay in a cheaper city. They said that those who decide to relocate to San Diego will have to accept an 8 percent salary cut. It makes sense since San Diego is a more expensive city than Denver. Other companies have promised to do the same thing to their workers but this hasn’t slowed down the rate of relocation.
The cost of living in Silicon Valley is great. Even if tech experts earn a lot of money, not every worker earns enough to maintain an expensive lifestyle and save. Some companies have also decided to remove their headquarters from Silicon Valley because the policies for businesses in San Francisco are too restrictive and the price they have to pay to run their businesses is too high.