As remote work becomes a standard practice, companies must rethink their compensation strategies for off-site employees. Many are still making the mistake of overly focusing on geographic factors or internal benchmarks, which can lead to inequitable pay and retention issues. Members of the Forbes Human Resources Council emphasize the importance of considering diverse factors like local economies, the nature of work performed, value creation, and employer branding when developing remote compensation packages. Organizations should aim for flexibility and customization in their approach to align compensation with results and employee needs.
Many companies still miss the mark on compensation for remote teams by focusing too narrowly on geography or internal benchmarks.
Competitive compensation packages include benefits that reflect the ethos of the business: flexible, family-friendly, and growth-oriented, rather than just geographically focused.
A forward-thinking organization aligns compensation with results rather than location, reducing retention risks that stem from inequitable pay based on geography.
It’s critical to incorporate the local cost of living and job market dynamics to ensure compensation reflects the true value of work performed.
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