For in-office or hybrid employees, the geographic pay locations are most often determined by their nearest work location (45%) or reporting location (31%). Meanwhile, over half of full-time remote workers are tied to location of residence, says WorldatWork.
Is dependency beneficial?
But is eliminating base pay dependency on location a wise move? Only 7% of organizations report geographic pay policies as ineffective for reducing turnover, according to the survey of 858 U.S. employers and 312 full-time business professionals.
And 73% of employees expect their pay to differ based on a geographic location.
Since 2020, about 2.4% of Americans, or 4.9 million people, say they’ve moved because of remote work. And almost 1 in 10 Americans plan to move to work remotely, report Bloomberg, citing studies from Upwork.
Almost three-quarters (72%) of HR leaders and 61% of employees say that the stress resulting from cost-of-living increases is negatively impacting employees’ work. Now, 72% of senior executives plan to leave their employer within the next two years, according to another study.