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Interviews with workers and internal company surveys conducted over the past year suggest that employees have been frustrated with compensation, and experts say that as tech stocks enter a correction and the labor market forces employers to be more competitive, this sentiment isn't likely to improve.
The pandemic proved very lucrative for many tech workers. As millions of people adjusted to working and being at home more than ever before, demand for the services offered by tech companies soared. The companies wanted to grow and needed the talent to do it, creating one of the hottest job markets in years and a soaring stock market to go along with it.
Rob James, a principal with Pearl Meyer who consults with tech companies on compensation matters, described the past two years as a "seller's market" for employees. But he said that in that time he's also seen a "compression" where new hires come in on higher salaries than pre-pandemic hires, leaving some employees feeling left behind.
In addition, James said, performance-based raises haven't kept up with inflation and rising salaries, which can create conflict among employees.