Another year of distributed work. A brand new set of questions.

In May of 2020, I wrote about the move to adopting a distributed model and how change happens slowly, and then all at once. Today most companies are approaching a year of distributed work and looking ahead at another. While the dust has started to settle for most companies, new questions are emerging — from who shoulders tax burdens for remote employees, to what ongoing support looks like for employees and their families. 

These questions go well beyond the productivity and collaboration topics that typically accompany any discussion around distributed work. And the answers are more important than ever as companies that want to return to the physical office look at another year away from it — and for others that plan to permanently embrace distributed work. A recent article by Chip Cutter and Emily Glazer in the Wall Street Journal examines what another year of remote working looks like along with some insights into how some companies are tackling some big, thorny issues.

Discussions about the future of work, such as whether to reduce the salaries of employees who have left high-cost cities, are priority items in board meetings and senior executive sessions across industries, according to chief executives, board members and corporate advisers. Listen to this article 6 minutes Among the questions companies are trying to resolve: Who should shoulder tax costs as employees move to new locations while working remotely? And what is the most effective way to support working parents? Companies say there is much at stake, from the happiness and productivity of employees to regulatory consequences, if they get these decisions wrong. 

Head to the Wall Street Journal to read the rest of the article.

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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