Business

Does your employer pay remote workers and hybrid workers differently?

Many companies are moving towards salary disclosure. At the same time, employers are determining whether to distinguish between wages of remote workers and hybrid workers.

Consulting firm Willis Towers Watson’s (WTW) 2022 Clarity survey found that 17% of companies surveyed disclosed pay coverage information in US locations where state or local law side does not require. The survey of 388 employers also found that 62% of companies are planning or considering disclosing information about future pay rates.

“Employers are currently disclosing pay coverage information but are not required to do so based on a number of different factors,” Mariann Madden, Fair Pay North America co-leader at WTW, told I. “Company culture and willingness to provide visibility and clarity in pay structures, programs and policies [are all factors]. However, these companies often already have a base salary and job structure in place, which aids in communicating the pay range for the workforce.”

The survey also found that more than half of employers (57%) are adopting a geographic pay policy to determine pay levels or ranges, and they will vary based on the location of the job. Now, the idea of ​​paying employees based on where they live is not new. But the pandemic has been the catalyst for remote work. Many employees have moved from big cities like San Francisco or New York to smaller, less expensive cities like Boise. Is the employer considering paying a remote worker differently than a hybrid employee?

Yes, we expect that companies will continue to set different pay rates or ranges for different segments of their workforce, such as remote workers, Madden said. appropriate or in place,” Madden said. “What this might look like in practice depends on the company’s geographic pay policy, which defines each type of workforce segmentation as well as how employees are paid. each segment will be linked to the pay structure by country or geography”.

Google as an employer where this struggle is currently taking place. The tech giant has always paid differently based on location, but the different pay rates have given “a higher meaning as about 17,000 Googlers have moved locations during the pandemic or gone completely away.” Fortune’s Beth Kowitt wrote in a recent article. “The premise of tweaking your pay to do the exact same thing, in just a different zip code, has become perhaps the biggest sticking point for employees — even those grateful for the choice. hey,” Kowitt wrote.

Google will also have to effectively navigate pay transparency if California Governor Gavin Newsom approves a recently passed bill requiring employers with 15 or more workers. Add payroll to job postings. Newsom has until the end of the month to sign the bill into law. California could join New York City, Colorado and Washington, all of which will require employers to include salary scales on job listings. WTW expects the recent wave of payments transparency legislation to continue, Madden said.

Research indicates that annual salary increase budgets in the US will skyrocket in 2023 compared to long time 3% increase to 4% or more next year. I asked Madden if some companies have expressed concern that salary disclosures would raise questions and raise current employees’ salaries even more.

“Some organizations fear that this will be the outcome,” she said. “But they should also be concerned about the pay gap that the current talent market is causing. Companies should conduct a salary equity analysis to understand whether their previous operations as well as any potential changes to their pay structure and pay range are not causing the disparity. unintended wages”.


See you tomorrow.

Sheryl Estrada
sheryl.estrada@uckyne.com

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