FOR IMMEDIATE RELEASE
New Legions of Remote Workers Puts Geographic Pay Policies in the Spotlight
April 9, 2021 — Scottsdale, Ariz. – Geographic pay policies, a.k.a. localized compensation, are in flux. Of the 62% of organizations with existing geographic pay policies, 44% are considering modifying or have recently modified their policies due to the increase of full-time remote work, according to WorldatWork’s Geographic Pay Policies Study. With 67% of employees expecting their compensation to reflect their location, geographic pay is a critical issue for employers 1) striving to improve the workforce experience and 2) recruiting/retaining top talent. Pay policy prevalence, geographic pay philosophies, determinants of employees’ geographic pay location, modification approaches, remote work flexibility, and limiting factors, among other variables, were measured. Organizations and employees were surveyed separately.
“Work is no longer a place. With remote working requests continuing to emerge and surprise leaders, companies are reevaluating how to create cohesive, consistent, and fair geographic pay policies as employees push to straddle multiple geographies,” says Scott Cawood, CEO, WorldatWork. “What used to only be an occasional issue is now a frequent request and savvy employers will need to respond with fair, transparent, and attractive geographic pay policies for distributed workforces if they wish to remain competitive.”
Survey data was collected over seven days ending 2/18/21. 1,566 responses (1,063 organizations; 503 employees) were received, representing organizations of different sizes and across multiple industries/geographies.
WorldatWork is the leading global nonprofit organization for professionals engaged in the critically important practice of Total Rewards. We serve those who are responsible for cultivating inspired, engaged, productive, and committed workers in effective and rewarding workplaces. We guide them in the design and delivery of Total Reward programs with our education and certification; idea exchange; thought leadership; knowledge creation; information sharing; research; advocacy; and networking.