Compensation in the Remote-Work Era

One of biggest headaches for HR when it comes to hiring remote employees is figuring out the right compensation strategy.

It’s always been somewhat normal to assess compensation based on the average cost of skilled labor in a particular region and industry. A tech employee in Silicon Valley would typically make more than a tech employee in Central Florida.

But what about a tech employee living in Central Florida but working for a company based in Silicon Valley? Do they get offered the going rate? Or is there a geographic scale?

You see the problem.

According to Bloomberg, in 2022, roughly the same number of companies base their pay on location versus those that don’t. But there’s a confusing 45% of companies that choose “other” when asked the question. What does this mean?

As a recruiter, if I had to guess, I’d say most of these companies are still trying to work out their strategy around remote work and pay structure. I’m curious to hear any insight on this topic….