New alternative work arrangements during COVID-19 are prompting employers to rethink compensation and benefit strategies, according to results of a recent Willis Towers Watson (WTW) survey.
HR Dive reported Wednesday that with significantly more employees working from home roughly half of survey respondents said these changes could eventually necessitate a hybrid reward model, which for some organizations may include paying employees based on where they are located.
While 61% of respondents said that next year, they’ll pay remote workers the same as in-office employees regardless of location, more than a quarter (26%) said pay will be based on the location of remote workers for all jobs, WTW said. Nearly two in 10 respondents (18%) said they set pay levels by first determining the market value of an employee’s skills and then applying a geographic differential.
While it remains to be seen just how common geographic differentials may become, employees have previously expressed a willingness to take a pay cut in exchange for the ability to work remotely, according to HR Dive. In a 2018 FlexJobs survey, nearly 30% of respondents said they would take a wage cut to telecommute. Similarly, in a 2019 Owl Labs survey, 34% of survey respondents said they would take a pay cut of up to 5% to work remotely; 24% said they’d take a 10% cut.
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It seems unfair that the small business company’s don’t have to rehire the employee just keep same head count what about the average employee working same place for 15 years and still not working while every other employee is. what happened to the veteran workers that was counted for in order for company to get the loan no longer needed