Gender Bias & Remote Work Arrangements

Since Covid-19, the workplace culture has shifted, and employees at record numbers are pursuing remote work opportunities. According to a survey completed by FlexJobs in March of 2022, 77% of its respondents chose remote work as the second highest priority for their total compensation package. The popularity, however, is not shared by the employer community, who often see remote work as a drawback to enhancing work group dynamics. Most recently, a number of articles and studies have also pointed out that the popularity of remote work arrangments and their benefit may impact men and women differently.

FlexJobs surveyed more than 2,100 people between March and April 2021 to gain insight into these new perspectives. These respondents either worked or were still working remotely due to the pandemic.

Among those respondents, 550 were men, and 1600 were women, and while males and females share some similarities in their remote work experiences, some differences were also noted. Among a number of findings, females were more likely to view remote work as a greater necessity than men.

Given these differences in opinion, employers may want to review their plans and incorporate their policies’ impact, how they are likely to be interpreted between men and women, and how they may impact the company’s pay strategy.

Compensation Strategies for a remote workforce

As remote work becomes more normalized, employers should consider adjusting their compensation strategy. Addressing remote workers’ pay combats pay equities issues that may arise where employees are over/under-compensated. In addition, recruitment and hiring may become difficult depending on the region where the applicant lives.

There are several strategies employers can take to address employees working remotely in several locations throughout the country.

Pay based on location

There are several approaches an organization can take to pay their remote staff based on location:

Set a pay scale based on the location of the main or corporate office. If multiple offices exist, assign your staff to the pay structure nearest their remote work location.
Pay is based on the pay zone that each employee lives closest to. Utilize a tiered US salary range. Take US national data and adjust based on the area. Add a 10 percent premium to employees who live in the five major metro areas, which include the District of Columbia, Los Angeles, Seattle, Austin, and Boston. Add a 15 percent premium to San Francisco and New York City employees since they live in a location with the highest cost of living and labor.
Utilize national data to set pay levels. This is recommended if the cost of living is similar to the national average.

Performance Based

Consider paying your staff based on their role and level of experience rather than their location. Pay should be based on job responsibilities and capabilities.

To accommodate this structure, a matrix can be developed to account for growth and the level of experience and skills.

Carve-Outs

Some jobs are in high demand and may be more critical than others. Consider carving certain classifications and setting a different pay structure for those groups so that they can remain competitive.

Equitable Pay

Employers need to communicate and document reasons for pay decisions due to remote work or performance, and employees need to be mindful of anti-discrimination laws to ensure that workers, including those within a protected class, are compensated equitably.

Define What Works for Your Organization

It is important to define your pay philosophy and structure clearly and what makes sense for your organization to help guide expectations. In addition, a competitive compensation philosophy can help attract and retain your workforce.

Also, consider the cost and administrative implications. For example, the financial impact for smaller organizations can be greater than a Fortune 500 company.

In summary,

As you navigate the societal issues around remote work, gender differences, and your organization’s needs, keep in mind that equality benefits everyone.

Courtney Geduldig of S&P Global summed it up best when she explained that “one of the biggest misconceptions about gender equality is that it only benefits women, but the data shows that this is not true.”

With companies focusing on recovery efforts following a pandemic, gender equality may recede in priority. Other priorities will inevitably emerge, but eliminating discrimination should never be put on hold.

By being proactive and aware of imbalances, businesses can become leaders against gender discrimination in all workplace settings.

8/5/2022

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