rise of remote working: Location is no longer a limiting factor for technology talent.

According to a study by global payroll company Deel, the demand for overseas tech talent in the U.S. increased by 74% over the last six months. Just a few years ago, if you lived outside of the U.S. and were considering a career as a software engineer, you would likely have to be prepared to leave your home country, attend an established school and find a business willing to sponsor you for an opportunity.

The constraints and logistics of pursuing such a career were challenging for many people, creating relatively limited access to skill opportunities and inequalities across various regions. In today's working world, software engineers may continue to be in high demand in California but are also increasingly in demand in other areas within the U.S. and overseas.

Remote working has established a new wave of globalisation, spurred by the pandemic. It has enabled greater access to high-paid and diverse opportunities across the world. An individual can work from literally anywhere and still have the potential to be employed in a high-paying position. Situations like this were literally few and far between just several years ago.

If we consider that global hiring will continue on this path, several positive and negative impacts could emerge. The first that comes to mind relates to wellbeing. Enabling employees to remain closer to friends and family has proved beneficial to employee mental health and productivity in the workplace. Remote working eradicates the majority of the daily commute, which equates to approximately 89 million hours each week within the U.S. Furthermore, the potential to hire people from a range of locations increases the diversity of backgrounds within a business, work cultures and ways of thinking.

Another benefit is increasing salaries for skilled professionals in various locations, decreasing the existing wage gap between selected regions. Higher salaries can benefit local economies since remote workers will pay local taxes and have increased purchasing power. The greater demand for talent in selected locations could also increase the development and construction of additional infrastructure and other local businesses.

A study by ADP Research Institute discovered that 64% of the global workforce felt that they were negatively impacted by the pandemic. These findings included 28% who lost their jobs, were furloughed or were temporarily laid off. A further 23% took a pay reduction. Research today suggests that we are witnessing a global recovery, with remote working salaries increasing, despite the emerging economic and geopolitical challenges.

U.S. tech hiring overseas has increased by 74% in the last six months. Engineering salaries in these selected countries have risen 29% on average, reducing the wage gap that has existed for so many years. The study delivered by global hiring and payroll business Deel showed that the wages people hired for their business from July to December last year increased by 57% in Mexico, 38% in Canada, 27% in Pakistan, 21% in Argentina, and 8% in India.

The benefits of this transition in the working environment are already apparent. For example, the median salary for an engineer working remotely in Argentina a few years ago was approximately $33,000. Today, the median salary stands at over $44,000. Apply a similar increase to multiple regions globally, and the impact of remote working becomes quite clear.

In terms of global demand, Software engineers, account executives, QA Engineers, Products Designers and Consultants were the top five most popular jobs. Remote hiring is emerging for more senior executive positions too.
One potential concern is that over time, an increased global talent pool could deter businesses from developing a regional hub due to the ability and ease of hiring remote workers. It could potentially impact local companies because they cannot compete with the best talent from larger businesses.

A further challenge relates to the remote working aspect. The lack of contact and increased distance between other colleagues may impact cultures and the sense of belonging to a business. Working from home impacts the balance between professional and personal lives. Retention could also become more challenging with more opportunities available in other locations.

The dynamic of this new working environment is still developing, but the benefits are already happening. Remote working and the increase in diverse locational hiring are considerable opportunities for global equity. The internet has created an environment of labour conditions where the location may necessarily not be a factor. Talent exists in all locations, and if you are looking to pursue a well-paid position as a software engineer, you may well be able to stay in your exact location.

Ten counties within the UK are considered potential hubs for a new wave of tech talent after the rise in remote working. There is a strong belief that more tech companies will follow a similar path toward remote working, meaning areas across the country with a lower cost of living could become more desirable to those looking to escape urban life. Other factors such as the cost of living could open the potential for city dwellers to explore a new opportunity somewhere quieter and consequently boost local economies.

Remote working offers the opportunity to transform the direction of the tech workforce. While many people wish to remain in the big cities, others choose to work elsewhere or find the commute to cities too challenging. Eliminating the need to attend the office in person has extended the reach to a new audience.
One study suggested that, on average, employees are willing to take a 10% reduction in their salary if they had the potential to work from anywhere in the world remotely, with nearly 60% of tech professionals stating an increase in their happiness due to working remotely.

With the emerging skills gap impacting the industry, remote work can eliminate the barriers associated with relocating and allows technology to be a more realistic career choice for more people. With better salaries in tech, established tech hubs like London and Manchester are likely to continue thriving. There is an alternative way of living for emerging technology professionals and a new chance to help businesses retain their employees.