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Discussion on: Should remote workers be paid differently based on location?

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Jason C. McDonald • Edited

I think this should be pretty simple: the salary should be based on the position, and established up front in the usual fashion. If it's a remote position, you the worker should take into account the cost of living in either the area you are IN or the area you WANT to be in when negotiating the salary, or even considering the job offer.

If you're already being paid a certain salary, and you decide to move while keeping the job, I don't think it's fair to force the company to pay you more than they were before just because you moved to a higher cost-of-living area. A Duluth-based tech company should not have to pay considerably more to Employee X than anyone else just because he decides to go remote and move to NYC.

At the same time, the company should pay the same (in general) for remote or in-office, not more or less for either. I say "in general" because salary negotiation is a thing, but there shouldn't really be significant differences based solely on remote status or where you live.

The cost savings to a company for remote workers (if any, depending on their infrastructure) are a reasonable incentive for the employer to support remote work, so it also isn't fair to expect them to roll up those savings into some sort of bonus for the worker.

Long story short: in-office, or remote from anywhere, should be the effective same salary. The only time geography should affect salary is if the employee is being required to move to or stay in an area by the company.

If a company has multiple offices, each with a different average salary — let's say London and Seattle — then the salary for the remote worker should depend on which office he or she works out of. There are other factors that determine the base office, including time zone factors, where the team needing the worker is based, et cetera. This doesn't have to be complicated, because honestly, it has nothing to do with it in the end. If Employee X is hired to be part of the team based out of Seattle, he should be compensated based on the average for the Seattle team, and London doesn't even factor into it.

Anything more or less is unfair to the worker, or the employer, or both. Individual differences in salary needs and expectations is why we have salary negotiation.