Talent Hunting? To Get the Best, Pay for the Best, No Matter Where They Live.
By instituting country-wide pay bands, we have seen higher retention rates and surpassed our revenue goals.
As John Lennon once said, "Life is what happens to you when you're busy making other plans."
Many employers try to attract the best workers in different ways, but in this article I will focus on our company's decision to not be restricted by location when making job offers or determining salaries. The reason is simple: Though salary may not be the only factor in a larger compensation package, it is definitely the most visible. For decades, companies have used narrow and outdated compensation models, often basing employee compensation on their geographic location.
The reason this is done is because it is more cost effective, as it takes into account cost-of-living indicators. However, is that geographic disparity a sufficient justification anymore when today's employees demand equitable and transparent salary scales as well as the desire to freely move around?
Hire for the Role, Pay for the Role
By implementing a country-wide pay scale, we have increased our talent pool. This larger talent pool means we can also look at diversity in a more positive light. We have a competitive pay scale no matter where talent lives, so we can hire the best people from all over the world to create a diverse and well-rounded team. This is also better for our new hires. An expanded vision of diversity means we can hire candidates who don’t come from only the top schools. Candidates who were unable to take unpaid internships because they were lucky enough to have wealthy parents now have a chance, and won't earn less than their more privileged peers.
Our Employees Are Happy, So We’re Happy
By valuing our employees' talents and contributions to the company, regardless of where they live, we create the most productive and happy versions of them. We have seen increased levels of engagement and retention from our talent since the start of the pandemic.
How did we arrive at this decision? By consulting our employees and taking into account what they had to say.
Flexibility
Today's workforce is looking for more flexible working arrangements. Being a remote-first company, we offer our employees workplace flexibility. Though some might not want a fully remote work experience, we provide access to coworking spaces globally so they can work from any location of their choosing.
Authenticity
We believe that by expanding our talent pool and going fully remote, we can give employees the freedom to be their true selves. This way, they can focus on being productive and achieving results, rather than on fitting into a traditional workplace lifestyle. It has been shown through research that when employees feel like they can be themselves at work and don't have to put up a front for their colleagues, they tend to be both happier and more productive. By not having to do the emotional labor of "fitting in" at a workplace that might not prioritize diversity, employees can focus their energy elsewhere and feel more invested in their work and relationships with their coworkers. Those who come from historically marginalized groups can feel that their worth is based on their work performance instead of how well they "pass" in the workplace. This not only creates loyalty, but also fosters creativity and peak performance.
Autonomy
They want to work and for employers to enable that, which would require removing barriers impeding people from performing optimally in their own, unique way. If we remove the geographic bias from our pay and hiring practices, we can recruit individuals whose ability might otherwise have been inhibited by demands such as child or elder care or other challenges that arise during the course of "life." Our most recent DEI survey showed that women, caregivers, and those employees identifying as Black had the highest engagement scores.
A competitive paycheck isn't enough anymore; the old methods don't work anymore. Our great network of employees shouldn't just be managed--they're people who have hopes, dreams, and desires that we would be foolish to ignore. Also note that these policies help the company reach its business goals by assisting our employees in being successful in all areas of life. The pandemic has forced companies to change the way they operate, and those that don't adapt will struggle to survive.
