What’s the Future of Compensation in Remote Teams?
Setting compensation is something every employer has to consider and the decisions they make ultimately affect everyone they will go on to hire.
This makes deciding how to approach compensation complicated no matter the makeup of your team, but with more companies embracing remote-friendly policies and expanding their hiring pool internationally, the layers of complexity naturally increase. In an effort to unpack all the competing arguments and intersecting elements, our Journalist, Bree Caggiati, is sharing a seven-part article series on Compensation for Global Teams.
As we finish up our article series unpacking international compensation, I want to talk about what the future holds. Where are we heading? Will distributed companies embrace global rates, or is it more likely they’ll continue to fall into both camps?
And having done all of this research and sharing these arguments -- where do I stand? What makes the most sense to me? And, has it changed as I’ve been writing?
The need for accurate and accessible market data
No matter the compensation style or strategy you choose to implement, data is undoubtedly one of the most essential tools in your arsenal. Even if you aren’t planning to tie your compensation offers to all the local markets you hire in, it’s still imperative to do your research. Information gives you context and valuable insight into what’s necessary to compete in this market, what minimum wage rates exist (including the cost of living), and what ranges will make the most sense. Companies that choose to set one global rate will still often tie their metrics to a specific location, for example, Boston for Help Scout, so accurate data is always crucial.
Unfortunately, accurate and helpful data isn’t always easy to come by, particularly when you’re hiring across many countries. It’s often... read more
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