The End of Pampering in Tech Career?
It all started in the late 1990s and early 2000s when the tech industry began to boom. Companies like Google, Amazon, and Apple were growing at breakneck speed, and new technologies like the internet, smartphones, and social media were transforming the world.
The demand for skilled tech workers skyrocketed, and with it came some of the most attractive job offers we’d ever seen. High salaries, extravagant perks, and fast-growing companies made the industry the dream destination for workers.
But as we stand today, things seem to be shifting. While tech jobs still pay well, there are signs that the industry’s golden age of ever-rising salaries and jaw-dropping benefits might be reaching its peak. Companies aren’t scaling their teams as aggressively as they once were, and the paychecks and perks that once seemed limitless are starting to normalize. Could we be witnessing a shift in the golden age of tech salaries? Let me share my personal thoughts on this.
Why tech salaries skyrocketed in the first place?
Imagine a brand-new playground in town that no one knows how to navigate. Only a handful of kids have the skills to climb the ropes or swing the tallest swings. Everyone wants to play there, so these skilled kids become incredibly valuable.
That’s what the tech industry looked like in its early years. Companies needed workers with specific, cutting-edge skills—like coding, data science, or designing websites—and there weren’t enough of them to go around. In economics, this is called scarcity: when demand is high and supply is low, prices (or salaries, in this case) go up.
I believe that tech jobs will likely remain well-paying compared to most other industries. However, the days of consistently massive salary increases might be coming to an end.
But it didn’t stop at money. They added perks: free lunches, nap pods, gym memberships, and even stock options that could turn employees into millionaires if the company succeeded. It was all about standing out in a highly competitive market. These perks weren’t just about luxury—they were a strategy to stand out in a competitive market and attract the best minds.
Why things are changing
Over time, things have started to settle down. Think of that playground again—now, more kids know how to use the swings and ropes, and some of the equipment isn’t as shiny as it used to be. Here’s what’s happening in the tech industry:
More skilled workers are available: Universities, coding boot camps, and online courses have trained millions of people in tech skills. With a larger pool of candidates, companies don’t have to fight as hard—or spend as much—to hire talent.
Some jobs are being automated: Many repetitive tasks in tech are now handled by machines or software. For example, AI can write basic code, analyze data, or even manage customer service chats. When fewer workers are needed for the same job, demand for labor decreases, which can put pressure on salaries.
Wage arbitrage: Companies have realized they can hire workers from anywhere, not just expensive tech hubs like San Francisco or New York. A developer in Dhaka or Kathmandu might be just as skilled but willing to work for a lower salary.
The shrinking benefits
One of the most visible signs of this change is the perks tech companies offer. During the peak of the boom, companies would attract workers with elaborate perks. But with costs rising and competition for talent easing, many companies are scaling back.
Instead, they’re focusing on essentials like healthcare and flexible working conditions. While this might feel like a downgrade, it’s a sign that the industry is maturing.
Now here’s the big question: will tech salaries drop?
I believe that tech jobs will likely remain well-paying compared to most other industries. However, the days of consistently massive salary increases might be coming to an end.
Some roles—like those in cutting-edge fields such as AI, quantum computing, or blockchain—will still command high salaries because they’re at the frontier of innovation, at least as we can think of now. But for more common roles, like web development or software development, salaries might flatten or even decline slightly as competition increases.
What does this mean for workers?
This isn’t the first time an industry has experienced this kind of shift. In the early 20th century, manufacturing was the tech industry of its time. The auto industry, for example, paid its workers generously during its early growth phase. Over time, as the industry stabilized and became more efficient, wages leveled off.
The tech industry seems to be following a similar path. After decades of rapid growth, it’s maturing. While this may feel like a letdown for some, it’s actually a natural part of an industry’s life cycle.
For those in the tech industry, or aspiring to join, it’s a reminder to stay adaptable. The skills that are in demand today may not hold the same value tomorrow. It’s crucial to stay ahead of the curve by learning about emerging technologies and focusing on areas where demand is still high. You have to be good at predicting the future.
The tech industry isn’t going anywhere—it’s still one of the most exciting and innovative sectors in the world. But the days of constant growth and extravagant rewards may be behind us.
It’s not the end of an era; it’s simply the next chapter. And in this chapter, the winners will be those who adapt, innovate, and keep their skills sharp.
As the industry stabilizes, it might just become a better place for everyone—not just the top performers but for workers at all levels. There’s still plenty of opportunity out there; it’s just about knowing where to focus.
Photo by Alex Kotliarskyi on Unsplash and Benjamin Child
