When someone says they earn ‘Wall street pay’ or a ‘Silicon valley salary,’ you likely surmise they make good money. Why? Because New York and the San Francisco Bay area have generally been expensive places to live with prestigious jobs and higher pay.
But widespread remote working has prompted an intriguing question for organizations to consider. Should people working remotely, where the cost of living is lower, be paid less?
“The answer isn’t a simple yes or no,” says Mark Melanson, an HR executive who spent over 30 years working for GE.
“There are many factors that companies consider when determining pay brackets. While geography is a factor, creating fair, equitable and consistent pay policies is what’s important. Right now, with remote work and the return to the office happening as we speak, organizations should be looking very closely at evaluating all the market factors.”
To that end, the following are some key factors to weigh to help companies develop smart pay strategies in this new world of work.