There are a range of ways to design compensation for distributed employees and companies. The resources below will help you think through some of the considerations and see examples of how others are approaching distributed comp.
Stripe Inc. plans to make a one-time payment of $20,000 to employees who opt to move out of San Francisco, New York or Seattle, but also cut their base salary by as much as 10%, according to a person familiar with the matter.
"A best practice has emerged among remote companies: variable pay based on the employee’s geographic location. It’s logical, rooted in good intentions, designed for transparency, and optimized for fairness. But regardless of the intention, I believe it’s the wrong approach.”
The work-from-anywhere era changes everything about compensation
The work-from-anywhere era changes everything about compensation (Fast Company)
Some of the tech industry’s giants have been dealt a giant blow by the COVID-19 crisis, laying off thousands of employees in San Francisco in recent weeks. These companies—and many others—are now looking at a future that includes moving entirely remote, or shifting to a hybrid policy in which employees are in the office only on certain days.
Despite its ubiquity, Brex is moving to become less physically centered in the Bay Area. It’s the latest company to make changes forced by the coronavirus pandemic permanent by announcing to employees late last month the company will go “remote first.”