How to Adjust Your Pay Model to Reflect Remote Work
The COVID-19 pandemic sent many people to work from home. It doesn’t look like remote work is going anywhere any time soon either. In fact, many companies found their employees to be more productive in the remote work setting. Not to mention, some employers were able to save money by not renting out a physical office space for workers. With many people working from home, you need to put some thought into how to adjust your pay model to reflect remote work.
Location, Location, Location
With more people working remotely, the location of your employees matters more when it comes to determining a fair wage. An employee in Iowa, for instance, may require a different working wage than someone located in New York City. You may want to keep this in mind when hiring and setting salaries for your employees.
Not all employers take location into consideration. After all, you can work from anywhere. So, why not locate somewhere your salary better serves you financially? Instead, they base their employee salaries on the job itself, skills, and experience. Overall demand for the job should be taken into consideration as well. If the job isn’t in high demand, geography is more likely to play a role in finding and hiring a new candidate and setting their salary.
At the end of the day though, many employers will lean towards lumping together the difference and leaving geography out of the equation entirely. Instead, the same salary would be offered across the board. It may just seem more competitive to individuals in lower-cost areas of the country than others. However, it is entirely up to the individual company on how they decide to handle it.
Think About the Entire Employee Experience
Human resources teams have to put more thought into the entire employee experience. They will need to put thought into how to change the company’s proposition model to reflect the remote workers on staff. HR will also need to change its operating model. This is because they will need to cater to individual employee needs more often. They will need to think about employees that never step foot in the office as well as those who come in several times a week. HR will need to address the staff’s needs and understand challenges facing remote and in-person workers.
Consider the Long-Term
Remote work is here to stay. So, consider the long-term. Your HR teams need to put additional thought into what your employees want. Beyond that, they will need to be well-versed in what will attract top talent in your industry and learn how to adopt those things for your organization. This includes how to best adjust your pay model to reflect remote work.
Many companies are looking to cut costs where they can these days. Working with a staffing agency like The Bradley Group can help you reduce the overall cost of recruiting for your business. Contact us to learn about how we can assist you in remote hiring and beyond.