By OpenComp, Jan 5, 2022 6:00:00 AM
We recently conducted an informal survey to understand how the COVID-19 pandemic affected our customers’ opinions and policies about remote work and compensation.
Survey participants included CEOs, HR professionals, and compensation analysts from pre-IPO and venture-backed companies of up to 200 employees.
Here’s a summary of the results.
The new now: Remote and hybrid work are here to stay — but may not be valued equally.
For many companies, fully remote and hybrid work arrangements will become permanent post-pandemic policy.
- 59% had hybrid or fully remote workforces before the pandemic
- 96% expect a quarter or more of their team to work from home post-pandemic
- 86% are currently fully remote or leave the choice up to employees
However, the perceived value of these work arrangements isn’t rising as quickly as their popularity.
- 73% value remote work the same or more than in-office work
- 27% value remote work slightly less than in-office work
Companies today pay current employees — and plan to pay future workers — similarly, wherever and however they work.
While the world’s fastest-growing businesses are embracing a distributed workforce, their compensation strategies haven't evolved to address salary ranges in different geographic markets.
- 86% of respondents have the same compensation strategy for both in-office and remote employees.
- 82% have the same compensation strategies for full-time and contract employees regardless of their work location.
- 77% are not considering reducing pay for current or future remote employees.
Want to learn more about compensating remote teams? Watch our webinar, “High-Growth Tips: Compensating Remote Teams”, and download our guide, “High-Growth Strategies to Attract, Retain, and Inspire Today’s Distributed Workforce.”
Base pay is the most significant salary difference between in-office and remote workers.
For companies who have a different pay structure for remote employees, base pay is the key factor.
- 77% of respondents reported a significant variance in base pay
- 41% reported variance in equity
Data is critical for the shift to remote.
Nearly all respondents use local market data to determine compensation for remote or hybrid employees.
- 96% said they require information about standards for compensation based on experience, department, role, and location to determine pay
Want to learn more about benchmarking? Watch our webinar, “What’s the Big Deal About Benchmarking for Pre-IPO Companies?,” and download our guide, “The High-Growth Guide to Compensation Benchmarking.”
Also critical: good communication, based on data-driven strategies.
Respondents are most concerned about communication and connectivity for distributed teams, and how to keep high performers longer in a competitive market for talent.
- 45% are most concerned with maintaining culture and productivity in a new working environment
- 32% are most concerned about losing top talent and paying competitively
Unexpected problems may be on the horizon for companies with remote workforces
As companies adjust compensation programs for its distributed teams, it’s important to adhere to compensation best practices and frameworks for consistency.
- 73% said they have a strategy to ensure pay equity
- Only 59% percent have a defined compensation philosophy, which calls the previous statistic into question.
You can also start using compensation intelligence for free!