What is the future of remote work and its ramifications?
Updated: Dec 17, 2020
When the Covid virus reared its ugly face in early March it forced most companies to adapt the work from home trend (remote work). More companies than less have adapted this methodology.
Years ago, the remote option had a bad connotation attached to it. Are my employees really working? Can I trust my consultants? If nothing else, employees are more productive and more accessible. Presently remote work has become a growing trend in many Industry verticals with many companies seeking to make it permanent structure (aka Twitter).
While employees may love the opportunity to work remote on a full-time basis there could be a price to pay in the end.
If employees base both salary and benefits on a higher cost of living (NYC, Boston, Seattle etc.), what happens when companies start recruiting applicants outside high cost of living areas?
The potential for salaries and compensation could easily be restructured based on cost of living areas. Firms could start looking for candidates in the suburbs or adjust to any lower cost of living environments. This would also open the thoughts of how do employers refill existing positions. Will pay metrics be based on – existing location or lower cost of living?
On the other hand, employers hiring remote workers (with a cost savings) might be able to expand their benefit programs to entice new hires and retain existing employees.
As the virus continues to subside we’ll see what the future holds with remote work. Many firms have expanded remote work till 2021.