How to Compensate Remote Staff Located around the World — Andy Sto

The challenges of setting a remote work compensation policy

Local, global and hybrid approaches to remote staff salaries

Local salary model: based on the employees location

Global salary model: based on the head office location

The hybrid model: based on the employees location with global benefits

National average model: based on the head office’s country

Remote salary calculators

Factors to consider when drafting your remote work compensation policy

  • Do you want to be transparent and openly share your remote compensation policy and will you be open to revising it over time?
  • Which remote work compensation model do you plan to opt for: the local compensation, global compensation, national average compensation — or a hybrid approach? This may be determined depending on where you plan to hire employees from, and how big the team will be in time.
  • If you opt for local or national average compensation models, then do you plan to use a compensation calculator to establish fair salaries? Or will you buy verified and well-researched data on living costs for each location? Or will you guesstimate local salaries and living costs? How often will you update the compensation calculator data? Will you use feedback to make adjustments where the compensation calculator or estimates of local salaries and living costs seems to be incorrect?
  • Would you reduce an employee’s compensation if they relocate?
  • Do you plan to provide any perks and benefits to employees over and above salaries, regardless of where they live?
  • Do you plan to monitor employee salaries to ensure that they are fair and equitable, and that gender equality and underrepresented groups are treated fairly?
  • Will you have a different compensation approach for top executives and managers?
  • How will you make decisions in future about remote compensation and how often will your policy be reviewed and updated?

Final thoughts on remote compensation models



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Andy Sto

Andy Sto

Digital Nomad focused in #remotework and #digitalnomadism