Should remote workers be paid less than those in the office?
San Francisco-based fintech startup Human Interest has grown dramatically during the pandemic, hitting 700 employees this year spread out across 40 states.
For those outside of San Francisco and New York, the company opted for a national average rather than a tiered approach that some other companies use. The debate comes as many workers consider remote work to be a valuable perk, which is probably why 45% of American workers would take a pay cut to get or keep remote work, according to a recent survey by GoodHire. That same survey found 73% of workers believed companies should pay in-office workers more.
Walden said companies that pay their workers fairly and equitable for their work — whether in the office or not — will be the ones that attract top talent.Companies with a remote workforce might save money when factoring in real estate, internet, office supplies and other overhead costs. Meanwhile, in-person workers have more expenses to deal with, such as commuting that can burden an employee, Walden said.
He stressed companies are more likely to offer pay differentials for remote employees among their permanent workforce in part to keep long-term costs down. However, contracted positions tend to be temporary, and companies need them for a specific, revenue-related reason.
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