Moved and Working Remotely? - Here's How To Avoid a Pay Cut
More people are working remotely than ever before. A Gallup poll showed that as many as 33% of workers are working from home full time. As the pandemic continues, higher cost of living cities such as New York and San Francisco are seeing an exodus of high paying workers moving to lower cost smaller cities across the US in search of a different lifestyle. Benefits such as a slower pace of life, cleaner air and lower home prices are driving this shift.
Lower Salaries Coming for Remote Employees
Employers are taking note of this shift as salaries tend to be lower in smaller cities and rural areas. Many employers who did not make salary adjustments in 2020 are planning to do so in 2021. Why now? As remote work becomes the new norm some employers are making adjustments out of a sense of fairness, or as part of their market rate strategy.
Others have figured out they don’t need workers to work in the office to get work done and are adopting a “work from anywhere” approach. This also means a shift to “hiring from anywhere” approach. Workers who previously competed within tight pre-pandemic labor markets will now need to compete with skilled workers nationwide including new graduates or those newly entering the workforce who tend to be paid entry level wages.
Before you revel in the idea of living like a king, find out what your employers policy is. Are they allowing remote work indefinitely or only as long as local shelter at home requirements are in place? Do they have plans to make cost of living adjustments?