Tech companies moving jobs out of US due to Great Resignation, remote work

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US employees make up only 18% of the company's workforce — and only 1% in engineering, data, and product. This premium story was unlocked by Verizon.

The payroll startup Deel is headquartered in San Francisco, but the 21 engineering jobs it's looking to fill aren't based there. They probably won't even be based in the US. Deel has an idea of where it wants to fill these positions — some in Latin America, some in Europe, Africa, and the Middle East — but the company says it's flexible because it wants to prioritize hiring the best candidates regardless of location.

The rapid and sweeping shift in tech employment is being fueled by a confluence of two factors: remote work and the Great Resignation. Once companies started allowing employees to work from home, they realized they could hire not only across the US but also abroad. Coding, in fact, is the most remote-friendly job in America: In a recent analysis of job postings on Indeed, across 51 occupational categories, the people most likely to be permitted to work from home were software developers.

Then came the coronavirus pandemic. For the first time, tech companies realized that people didn't have to see one another every day to work well together. With everyone stuck at home, people still collaborated, and products still got built. Everyone from the tech giants to the smallest startups started hiring engineers across America, far beyond the cities where they had offices. That enabled them to tap a much larger talent pool — and pay lower salaries.

Safeguard Global, a payroll and workforce management company in Austin, Texas, that competes with Deel, has taken a similar approach."I needed to have the best talent, and I couldn't possibly do that from one location, because the competition for top talent is too high," says Chitayat, who is Safeguard's chief technology officer.

If you're a software engineer in the US, your biggest concern is probably what this means for your job prospects. When American companies outsource jobs, it often fuels a protectionist,"made in America" backlash.

 

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