Will the popularity of remote work change?How do we market price work?

The Covid-19 pandemic gave rise to an employment protuberance to adapt to a work model from the home, which led to a wide adoption of remote work. While many are wondering if the remote work is here to stay, conventional wisdom predicts that, in many cases, these works will continue remotely. In a survey conducted by the Pew Research Center, more than half of the employees said that, given the option, they would want to continue working from their home, even after the crisis of Coronavirus decreases.

The advantages of remote work for employees are many, including travel time reduction, car savings and transportation, more focused work time with fewer distractions, and greater flexibility for the Commitments of child care, lifestyle and family. For many people, return to the \”normal\” work of five days in the office routineRia a highly unattractive result.

Technology companies such as Microsoft, Salesforce and Twitter announced quite early that their employees would have the option to remain away. That is not surprising, since the most compatible works with remote work are generally found in the information, technology and financial services industries. Companies such as Nationwide, Aetna, BP and Verizon also offered various remote arrangements to employees.

There are, of course, the advantages of the employer’s perspective that must be heavy, including the potential for improved productivity and a larger pool of qualified candidates to take advantage of. But the change to remote work also requires employers to determine a very important question: how could remote work agreements impact payment?

The potential impact of remote works in compensation practices

If a companyChoose to adopt a remote workforce, must determine how, or if, compensation must be adjusted. A compensation practice is for jobs using geographical areas and, sometimes, in the industry, which adapt more to the recruitment group used for work for work. Traditional the price of the compensation market considers the geographical location as one of the factors by developing payment levels. The great meters like New York and San Francisco usually have higher payments of payment than the locations of the rural city or smaller. With remote work, should the differences of location or in some cases ignored be minimized?

The answer is: it depends.

Remote jobs offer employers the ability to expand existing recruitment groups, which is a real benefit. However, they should also develop payment strategies to adapt. Normally, thoseJobs have been loaded depending on the recruitment area. However, with remote job opportunities, the recruitment area could be considered throughout the country. A probable result is that payment levels for all remote jobs will follow the prices of the national market instead of being based on the employee’s location.

Highly specialized, \”hot\” works, add another layer of consideration to the process. These difficult jobs may be exempt mostly geographical. Costs of costs, with prices driven mainly due to the availability of talent. If the talent group for a certain work is limited, prices will be reflected more at the shortage of Qualified candidates instead of the location of the candidate. In other words, if you need to hire certain talents, a group of candidates who are widely dispersed will result in more hiring options, will be more favorable for thoseRemote Rreglos and less influenced by geographical considerations.

Local market Conditions will continue to affect jobs in person

, not all jobs are adaptable to remote work. According to a recent McKinsey global study of changes and trends of labor force, the 60% of workers in the United States can not carry out their work remotely. These jobs in person are usually in medical, retail, hospitality and operations.

Paying for some first-line jobs has been improved with bonuses and / or premiums to encourage workers to remain on board, though away from these incentivesHan has been only short term. Recruitment for work that will remain fully in person, including roles such as factory workers and warehouse, hospitality workers, automobile mechanics, plumbers, drivers and workersFrom health, they will continue to be recruited mainly from local talent groups and will be more affected by locals. Marketing.

Employees are also expressing interest interested in a hybrid work model, where there is some combination of work hours in person and remote.According a PWC report, more than half (55 percent) of 1,200 Workers surveyed between November 24 and December 5 said they prefer to work remotely three days a week. It is most likely the payment of the jobs that allow to work remotely of the time will not be adjusted.

Companies that manage a combination of work force on the site and remote that are composed of say 50% remote and 50% Enel site for the same role, must find out how to pay equitably to avoid the creation of the system of class. A Focus could use the location of the site such as the AC Payment Level Ance and Apply a DescuENO or a reasonable premium for workers in different places. Ultimately, the jury is still out on how this will be handled, and the different companies will address it in different ways, with many learnings so that everyone is considered along the way.

The new norm normal to determine payment

While some organizations will have all their employees will continue working on the site, others will administer a hybrid of workers in place and remote, and some will administer A totally remote workforce. Whatever the arrangement, the determination of the correct payment by jobs, and guarantee fair payment equity, now will have additional complexities. Next, the best initial approaches that employers can take in this new normal: Determination of payments for remote workers should be based on the work done, required skills and availability of candidates, with less weightPlaced in the location, since the workers will be in many places.For jobs that can not be remote, the pay will continue to be impacted by the price differences of the location, since most recruitment will be from local talent groups.Keep your ear to the ground for new ideas as the work agreements and payment methodologies continue to evolve themselves with an open mind to employees, managers and colleagues of the industry on how changes can be implemented without negative impact on theoperations.Develop a compensation plan that is transparent and easily communicated.