Tech-Compensation Trends to look out for in 2021

The outbreak of the Covid-19 virus has changed every aspect of our lives and society. It has fundamentally altered the process most companies worked including hiring, recruitment, and conducting daily business operations. Owing to these, several compensation trends are structured to help reach the organizations' goals and strengthen the employees in this disrupted environment.

Due to the emergency Covid guidelines almost all global companies; have been forced to conduct business operations digitally. It means that most companies are heading towards a digital work environment. Some companies are even considering permanent work from home. Therefore, to adjust to the current working environment, companies are looking for individuals with the best tech talents and who can adapt to these changes smoothly. Recent trends in compensation management reflect the company's attempts to increase the organization’s rapidity to reach its goals and create a long-term balance between the organization and its employees.

Here are some of the current trends in compensation to look out for in 2021:

1. Reconsidering pay for isolated working- In the first quarter of 2021, over half of the global workforce is working remotely which enabled several organizations to cut real estate and transportation costs. It is only for essential services that, commuter services and company cars are provided to ensure the employees' safety. Remote working can help minimize costs and enhance employee engagement and well-being. For other leadership roles like the chief technology officer or the engineering leader of an organization, and such other positions that are responsible for interpreting the current trends in this evolving technological landscape, demand the maximum salary increments in the market.

2. Rewards for digital talents: The sudden change in working environments has enabled a complete digital transformation. There has been a rise in demand for candidates with crucial digital knowledge like machine learning, data analysis, customer experience analyst, user interface designer, and other roles. These additional skills from the employees enable the organization to adapt to these changes and create long-term solutions for such disruptive environments. With the rise in remote working, possibly becoming a permanent solution in many organizations, digital executives are aware of their demands and their current market value. Companies should focus on understanding the present landscape of technological changes and take the necessary measures.

3. Enhanced cybersecurity- During the pandemic remote working proved to be a successful solution to carry out business operations, but it also pointed out the importance of cybersecurity. In the first half of the pandemic, several organizations realized that they were ill-equipped to protect confidential business information. While the world is moving towards digital currency and digital transactions, it was imperative to bring technological changes that confirmed the protection of such information. Confidential employee information also required protection in the digital workspace and hence required enhanced security. With the advanced technologies available today, maintaining tight cybersecurity has become easier. Among the current trends in compensation, this is one of the most important changes to look out for.

4. Keeping up with the ESG agendas: Inspite of pandemonium during the outbreak, several investors held company leaders accountable for their environmental, social and governance (ESG) agendas. During the lockdown, several companies took rapid measures to ensure the safety and well-being of their employees. Thousands of employees suffered from job loss and started showing symptoms of extreme anxiety and depression. Many companies acknowledged this crisis and provided timely guidance concerning compensation and temporary adjustments, enabling different salary trends in the market. Many large scale organizations moved towards more sustainable forms of products and services to ensure environment-friendly practices in the wake of the pandemic.