Workers Want to Do Their Jobs From Anywhere and Keep Their Big-City Salaries | The Wall Street Journal

Workforce Trends

Many employers use location-based compensation structures to determine pay for a job. However, a segment of workers living in higher cost-of-living areas moved to lower-cost-of-living regions because of being able to work remotely during the pandemic. This trend has forced firms to answer the question: Should workers who moved to these lower cost-of-living areas face a salary change to align with labor costs at their new location? While many workers would argue that their work has the same value no matter where they do it, firms have taken different stances on this topic. Facebook, Twitter, and Microsoft cut pay for remote employees who moved to less expensive areas. Google developed a “Work Location Tool” to assist employees in calculating how their compensation might change if they relocate. Smaller companies, including Reddit and Zillow, have shifted to location-agnostic pay models. Since there is no one-size-fits-all approach given the multiple factors involved, firms must critically evaluate the impact of these decisions on their ability to hire and retain top talent. This article provides additional perspectives on this topic. What is your firm’s philosophy on location-based pay in the context of remote work?

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