Location Independent vs Location Dependent Salaries

Last month Google told its employees their pay will be lowered if they switch to working from home permanently and the remote location has lower labor costs than where their former offices are located.

Besides Google, other social media giants such as Facebook and Twitter also cut pay for remote employees who move to less expensive areas. At the same time, smaller companies including Reddit and Zillow have shifted to location-agnostic pay models.

This news has fueled a discussion that has been familiar to all remote-first companies for a long time: should you pay your employee a location-based or a location-independent salary? What are the pros and cons of each approach?

Find out in this video where I answer all these questions and also share how we do this at ‪@timedoctorsoftware‬.

#runningremote #liammartin #remotework #locationindependentsalary #locationdependentsalary #workfromhome

Chapters
0:00 Introduction
1:05 The Buffer Formula
1:25 Location Dependent Salary
1:48 Factors to consider for location-based salary
2:53 Location Independent Salary
3:24 What do we do?
4:32 Don't make the same mistake Google made
5:13 Conclusion

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