Hey there, Remote Work Tribe! As we step closer to September and even closer to fall, (yes, summer officially comes to an end September 22 🤯) we hope that you confidently crushed all of your August goals.
For decades, employers and employees alike have discussed the widespread discrepancies between salaries in relation to company and employee location. Large corporate hubs, such as New York City and Silicon Valley, tend to see higher paying positions versus less-notorious business cities like St. Louis or Portland. And while salary vs. location has been an ongoing battle, there hasn’t been a solution in sight.
Now, as this conversation bleeds into the booming era of remote work, what’s the next move? We’ve already noted that several members of the remote workforce have chosen to relocate from major cities, but how will that tackle the issue of payment?
The Remote Work Tribe was quick to weigh in, offering several points of reasoning such as the issue of supply and demand, along with the global expansion of remote talent.
Two reasons: (1) Supply & demand. Your competitors do, so if you pay more then you are paying more than you have to. (2) Cost of living varies, so if you convert the $ to a basket of goods, so from that lens you are not paying fairly if you pay everyone the same $.
— Adam Nash (@adamnash) August 23, 2020
Long term I think all workers will see stagnation in salaries as pool for qualified workers becomes global.
— Karen B. Forster (@karenbforster) August 23, 2020
In the past premium paid to workers in NY / SF were because many companies were competing for talent in that city. But now companies can get that same talent anywhere.
The way I look at it, you should have a base rate for all employees, with a cost of living affordance for those living in major cities where the cost of living is +25% to 50%. A job is about sustaining a certain quality of life (housing, discretionary income etc).
— Jules Ehrhardt (@ezyjules) August 23, 2020
How do you feel about workers being paid differently based on location? Tweet us @RemoteWorkTribe and let us know!
…But wait up! The remote work conversations didn’t stop there. Check out what everyone else was chatting about this week.
The Tribe’s Weekly Vibes
1. This top-level survival skill combines the focus of a remote worker and the aim of a warrior.
2. The mixed emotions of hump day while working remotely.
3. This reminder that it’s OK to send your parents to voicemail every once in a while.
4. The moment when remote work allows you to become the watchdog instead.
5. This unexpected hard-hat rendition of the Remote Work Tribe.
6. This accurate representation of why most of us prefer remote-first companies.
7. This important reminder to remain attentive while evaluating a business partner’s character.
8. This list of benefits you’ll lose if you ditch the Remote Work Tribe.
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What’s new in your remote role this week? Tag us over on Instagram, @TheRemoteWorkTribe, or on Twitter, @RemoteWorkTribe, for a chance to be featured on our next weekly thread!
[…] remote workers make less if they live – or relocate- to a cheaper city? In an ideal world, everyone should be paid based on the output and results they generate, not […]