Juggling the Challenges of Remote Employee Compensation

Over the last two years, employees have come to appreciate the benefits to a fully remote or hybrid work environment. These benefits include saving time commuting, more productivity, schedule flexibility, and better work / life balance. A vast majority of workers do not want to relinquish these benefits as we begin to migrate back into the office. According to Payscale’s 2021 State of Remote Work Report, 43% of employees expect more remote work options moving forward. Yes – remote work is here to stay. Considering the high number of employees anticipating opportunities for remote work and the bourgeoning talent retention challenges from the Great Resignation, organizations must consider how they will respond. In this Astronology®, we’ll briefly discuss a weakness many organizations are facing in connection with the recent demand for remote and hybrid work environments, and some compensation options to deal with this new work environment.


Three Common Approaches to Remote Work Base Pay Compensation

Payscale’s 2021 State of Remote Work Report exposed a weakness many organizations possess: 81% of surveyed organizations did not have a compensation strategy that incorporates any form of remote work. Let’s begin by considering what compensation approaches could be used for those opting to provide a fully remote and / or hybrid working environment. There are three common approaches to remote work compensation:

Establishing pay based on where the employees live – Using this approach allows the organization to incorporate the cost of living where the employee lives. This is a major concern for employees that live in locations with a high cost of living. They will find this approach beneficial as it guarantees they will at least earn a wage that will allow them to maintain their current living conditions. A disadvantage to this approach is that staff with the same tasks / job title, but with a lower wage due to their location, may feel negatively impacted. In time, this approach can lead to low employee morale and a lack of motivation.

Establishing pay based on the location of the organization – This approach involves using the organization’s headquarters as the benchmark for base pay. Doing so could eliminate unfair pay issues as employees with similar responsibilities would have the same pay – regardless of where they are located. Organizations must keep in mind that this approach could result in talent retention issues. For example, remote workers from a high cost of living area may not be inclined to work for an organization that has its pay centered on a lower cost of living headquarters.

Establishing pay based on the national pay average – A third approach could be to use the national average as the benchmark for base pay. While using the national average seems to be a fair approach, be mindful that workers from locations of high cost of living may find themselves being paid lower than their location’s cost of living. To alleviate this, some organizations have offered a 15% to 20% premium to workers from major cities such as New York and San Francisco. This approach also means workers from rural areas may possibly gain a bump in pay if the national average is higher than the local average.

Incorporating Total Rewards into Compensation for Remote Employees

Regardless of your stance for a fully remote, hybrid, or fully in office work environment, Astron recommends constructing your compensation philosophy on Total Rewards – no matter the industry or the workforce population. Total Rewards is the combination of benefits, compensation, and other rewards that an employee receives for their work. By combining both the intrinsic and extrinsic rewards and providing transparent messaging of these rewards, employees can see the bigger picture of how the organization values their contributions.

The main purpose of a total rewards compensation strategy is to help organizations strike the perfect balance of budget constraints and organizational culture, mission, and goals. By thinking about direct and indirect forms of compensation strategically, organizations can develop more effective compensation plans that support long-term engagement goals while also making the most of available resources. With this new phase of hybrid work environments, incorporating a total rewards approach to compensation may provide the best solution for both employers and employees.

Is your organization part of the 81% that does not have a compensation plan in place that considers remote compensation? Contact us today to learn how you can update your compensation program to reflect our ever changing world.

Is your organization part of the 19% that does incorporate geography into pay? Share your thoughts with us in the comment box below!

New Feature Available “Ask the Expert”

“Ask the Expert” is a new benefit exclusively provided to our Nonprofit Partners. If you are a Nonprofit Partner looking for guidance, support, and/or a resource, you can do that easily by completing the brief questionnaire below.  Your questions will then be directed to one of our vetted and approved Associate Member/s. Once received, they will be in touch with you in a timely manner, in order to help you with your inquiry.

Ask Your Questions Today Here: https://nonprofitresourcehub.org/ask-the-expert/

Camp Pa-Qua-Tuck

Camp Pa-Qua-Tuck is a 501(c)(3) nonprofit that has been welcoming children and young adults (ages 6-21+) with special needs for 75 years. Located in Center Moriches, the Camp provides a variety of creative and challenging activities that build self-esteem, promote social and personal growth, and provide experiences that these children would not otherwise be able to enjoy. Campers learn how to explore and try new things, make friends, practice self-discipline and independence, build resilience, develop their talents, and practice teambuilding and peer relations, all in a safe environment where they feel comfortable and supported. Campers leave with smiles on their faces, pride in their accomplishments, and lifelong friendships. At the same time, parents are provided with some much-needed respite.

Camp Pa-Qua-Tuck is a sleep-away camp and boasts all of the activities one would expect in a camp, including a recreation center, in-ground swimming pool, row boats, kayaking, fishing, campfires, movie nights, arts and crafts, adaptive sports and games, nature trails, and even a petting zoo. The Camp welcomes children with most physical and developmental challenges, and is proud to be a place “where summer is for everyone!” In addition to summer programming, the Camp offers several year-round programs that provide recreation, social activities and respite for their caregivers. In total, the Camp serves nearly 500 campers annually.

The Camp relies on generous supporters to ensure a safe, fun, and high-quality Camp experience for all campers. Monetary donations and volunteers willing to donate their time and talents are always welcome! If you’d like to make a donation or volunteer to help, please call the Camp at 631-878-1070 or visit www.camppaquatuck.com.

OPEN Impact Real Estate

State Department of Education and are tuition-free public schools with private management. In the last nearly 10 years, funding for the schools also includes facility funding to support the costs of private facilities. As a result, the OPEN team has helped clients lease and purchase hundreds of thousands of feet of facility space.

Demand for charter schools has persisted throughout the pandemic with the concentration of admission applications located in the Bronx, upper Manhattan and parts of Brooklyn. Many parents in underperforming school districts believe that charter schools can offer them a critical alternative. There are approximately 85 charter schools in the Bronx and Brooklyn out of more than 250 citywide.

Finding permanent, autonomous real estate for charter schools in NYC is not an easy task. Considerations such as proximity to mass transit so that students and staff can get to school easily and inclusion of athletic facilities, like a regulation basketball court and outdoor play space, make site selection complex. Charter schools also add other student-friendly features to their buildings such as acoustically sound music rooms or wider stairways for circulation.

Open Impact Real Estate’s nonprofit practice takes these specific requirements and helps schools pursue build-to-suit deals with developers. There’s nothing readily available, so because of the lack of supply, we’re often working with developers doing ground-up development for the schools, including recent deals for Zeta Charter Schools, Public Prep, Seton Education Partners, and Bold Charter Schools. The benefit is that the schools can create a learning environment from the ground up and build in all the specializations that they want. Ground-up development is also generally lower-risk for charter schools.

TRANSWESTERN is an affiliate of OPEN Impact Real Estate

Save Time & Money On Operating Your HP Printers

Paying a high amount each year for a fixed traditional contract may not make sense if you do not print that much, but at the same time, you don’t want to be stuck with a large, unanticipated repair bill. When your printer goes down, you need it repaired quickly so you can get your work done!

CF281X

As an HP Managed Print Specialist with access to special supplies & discounts from HP, our contract program will cost you no more than what you are paying for supplies today, and it includes service for the lifetime of your printer(s). This will not only save your business money but it will also save your staff time and prevent printer downtime by not having to think about ordering supplies. Our team will send you HP Original supplies automatically 10–20 days before you need them.

Call 718-785-8243 Ext. 3 or fill out the form below to get started today!

The Why

Today Longhorn Outpost is a place I want veterans to feel welcome and at home. Our mission is to Defend, Advocate for, and Educate” veterans and their families so that we can change their lives without all the requirements.

Continue reading