The Covid-19 pandemic has transformed how and where people work.
Back in February,Spotify announcedthat its 6,550 employees can choose where they want to work in the future.
Whether thats in an office, a coworking space, or a beach in Bali.
In 2020, Dropbox also announced they were going to have avirtual first workplace.
This mass migration of employees has raised plenty of questions.
One of the most pressing concerns at the moment is geo-differentiated vs geo-neutral pay.
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In fact, Mark Zuckerberg said,
Therell be severe ramifications for people who are not honest about this.
Twitter has followed a similar vein.
Employees that leave the Bay Area will receive substantial pay cuts.
Are all companies doing this?
The short answer is no.
It seems like every company is trying to figure this out individually.
Spotify for example will be following a geo-neutral pay format.
Marketing startup Iterable, also announced that the company would be moving to a similar pay structure.
So how are companies deciding what approach to take going forward?
When companies have different pay structures, figuring out compensation can get complicated quickly.
In todays competitive talent market, a geo-neutral approach also makes tech companies more appealing to talent.
Employees can live in Manchester, but get paid a London rate.
What about the future?
While geo-neutral salaries are definitely not the norm, they are becoming more popular.
In 20 or 30 years, its highly likely that a national pay scale will be implemented.
