Why Distributed Companies Will Likely Move Away from Location-Based Compensation

Managing a remote workforce comes with obvious benefits (no pricy office space, for one), but also with some distinct complexities. With potential employees applying to a variety of positions from dozens of countries around the world, it can be a tall order to create salary ranges that are equitable, fair, and scalable. But as Matt Mullenweg recently explained in an interview with Connie Loizos at TechCrunch, getting this right is a crucial goal and an ongoing process for any distributed company that wants to hire from a geographically diverse talent pool.

Among other highlights, Matt mentioned that ethical considerations and macro-economic trends will push more and more companies in the direction of location-agnostic salaries:

“Long term,” said Mullenweg, “I think market forces and the mobility of talent will force employers to stop discriminating on the basis of geography for geographically agnostic roles.” He also said that while he isn’t aware of location or geography currently being a protected class for pay discrimination suits — at least in the U.S. — he thinks that for “moral and competitive reasons, companies will move toward globally fair compensation over time with roles that can be done from anywhere.”

Read the rest of the interview on TechCrunch

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