The Washington Post reported on “Six ways your office will be different in 2021, assuming you ever go back to it.” An important part of what may change for some people in the coming years is recruiting and salary negotiation. Solid financial planning can help you weather changes in hiring and compensation.
Some employees have remained in the same area and worked from home during the pandemic. Others moved to different cities while they continued to work for the same organizations. In many cases, salary remained the same whether employees stayed in the area or not. This may change for some people. According to the The Washington Post, “…an October survey by advisory firm Willis Towers Watson found that 26 percent of respondents said they would base compensation on location for remote workers.” In other words, if you moved to an area with a lower cost of living your employer may lower your salary.
There is no need to panic. The respondents to that survey do not represent all companies. Some employers may take a different approach. Employees who have moved to areas with a lower cost of living may find that they are not getting the kind of raises they could have expected had they not moved. And one expert commented that people who are getting paid less after they move still have the option to look for other jobs.
That is another interesting development. Employees are able to work remotely across the nation so employers will be looking nationwide for talent. You won’t be just competing with people who are nearby but with workers all over the country.
It is always good to be informed of what the salary range is for your type of work so you know if what is being offered measures up. You have to consider the benefits being offered as well. And remote workers also need to be aware of what kind of costs they will be responsible for such as internet service. While employers may reduce overhead and office space, remote employees are picking up the slack because they need to have their own office supplies and pay for their own electricity.