The work-from-anywhere era changes everything about compensation
Companies that say they’ll let people work where they want have yet to figure out what that means for pay. Here are the questions that need answering.
Some of the tech industry’s giants have been dealt a giant blow by the COVID-19 crisis, laying off thousands of employees in San Francisco in recent weeks. These companies—and many others—are now looking at a future that includes moving entirely remote, or shifting to a hybrid policy in which employees are in the office only on certain days.
Employee compensation is a company’s largest operational expense. Yet those announcing new remote work policies have yet to reconcile how the new rules impact compensation in the long term. Though some companies, such as Facebook, have already announced their intention to pay different rates for employees working outside an office, most have been holding back on making that decision. But once the dust settles and many or most employees have moved off-site, employers will be looking at shifting pay policies while employees reconcile how this affects their paychecks and plans.