Senior management and leaders are trying to decide how to bring back employees to the office. This is a big decision. According to FlexJobs, 58% of workers stated they would look for new jobs if they couldn't work remotely.
Compensation is often overlooked or poorly crafted. Compensation planning is a complex area that involves founders, leaders, and compensation experts.
These are just a few of the new questions that this group must answer:
Are salaries adjusted for those who move to other regions?
Can we change the pay of employees who perform the same job, have the same title and are located far from each other?
How can we teach geographies who aren't as well-versed in equity value as Silicon Valley?
These questions can be answered differently for everyone, as we've seen over the past weeks. Google employees working remotely may see a reduction in their pay. Adobe employees can choose the days they work remotely up to 50% of time without any salary impact. LinkedIn has just relaxed its policy to allow employees to work remotely permanently.
No matter what your company's position on distributed work, the first step to developing a compensation program is to determine how your teams are paid relative to the market.
No matter what your startup's stance on the subject, having a consistent and consistent compensation philosophy for your workplace can have a huge impact on important growth metrics such as attracting and keeping top talent and creating a culture that trusts and performs.
As the CEO of a company that provides compensation intelligence, there are four mistakes startups make when planning compensation. These mistakes can hinder success for remote and hybrid workers. These are the steps to avoid them.
1. 1.
No matter what your company's position on distributed work, the first step to developing a compensation program is determining how your team's pay compares to the market. Data is the key to understanding market rates.
2019 data will not work if you are moving from an office-based model to a hybrid one. It is tempting to either search online for free data or use data from surveys your company has bought in the past. However, both options have their risks. Traditional compensation survey data is outdated, limited, and sometimes not verified. Because spreadsheets require manual labor, they are highly susceptible to errors and security risks.
Only current, real-time, accurate benchmarks or pay ranges will suffice in a world still responding to a pandemic. These must include aggregated information on what other segments are paying employees according to experience level, job role, department, geography and industry size.
Technology startups, for example, require different data sources from global financial service organizations. Both require information that is geared towards companies of similar size and stages. Salary requirements for software engineers should reflect similar positions, with some nuances for those who specialize in data science and machine learning.
It is amazing how many times self-reported data from free websites are inaccurate or unverified. A credible source of intelligence for your compensation data must be found.
