To adjust pay, or not to adjust pay? That is the question employers are asking as they rethink their compensation strategies in response to the new era of remote work.
Social media site, Reddit last week became the latest in a slew of tech companies to take a decisive stance on the issue, announcing that it would not cut the pay of its 600 U.S. employees regardless of where in the country they choose to live.
The call contrasts with those from Facebook and Twitter, which have said they will cut the pay of employees who choose to relocate away from their head offices in the pricey San Francisco Bay Area. Payments platform Stripe said it will offer employees $20,000 to help with moving costs but will then cut pay by 10%. Meanwhile, Software maker VMWare said it could reduce relocating staff salaries by up to 18%.
That has sparked debate about whether these moves will set a precedent for how salaries are determined going forward, and what that could mean for employees working in different industries and locations. CNBC Make It spoke to some experts to find out more.
“Covid-19 is a gamechanger for the workplace,” said David Lewis, CEO of HR consultancy OperationsInc, a human resource consulting firm. “The ability to work from home is going to be … a huge competitive issue, and compensation is part of that.” Read more via CNBC