PayScale Challenges Organizations to Look Beyond Cost Savings When It Comes to a Remote Workforce

Seattle, Washington, UNITED STATES

  • New research from PayScale reveals three compensation strategies for setting fair pay

  • Research suggests remote work can increase diversity and help close the racial and gender pay gap

SEATTLE, Aug. 10, 2020 (GLOBE NEWSWIRE) -- PayScale, Inc. challenges remote work assumptions on compensation cost savings for organizations with new research on how to set pay for remote workers. The company’s data-driven analysis uncovers three strategies for compensating remote employees based on talent market competitiveness and business goals.

PayScale’s analysis of compensation data shows that a compensation strategy for remote employees is not one size fits all. Different businesses will need different strategies to support the expansion of a remote workforce depending on market competition and business goals. PayScale details three strategies for consideration: pay by employer location, pay by employee location, or pay according to a national average.

“Considering remote work as merely a mechanism for cost savings is short sighted,” said Scott Torrey, CEO of PayScale. “There may be cost saving opportunities for some businesses, but the real opportunities include increased employee satisfaction, productivity and talent pool access with workplace flexibility. When approached thoughtfully and deliberately, remote work can help diversify the workforce and close the gender and racial wage gaps.”

These strategies are based on research that shows employees who currently work remote full time make more than employees who do not work remote. When controlling for job title and other compensable factors, employees who currently work remote make 8.5% more than the median salary of employees who do not work remote. PayScale notes that employees working remote are not paid more because they work remotely. Instead, these remote employees tend to hold greater representation in the information and professional services industries where median pay is generally higher and top performers were more likely to be allowed to work from home fulltime pre-pandemic.

As remote work expands, organizations are going to need more compensation data to manage offers to candidates in new markets. PayScale’s research shows that adjusting pay by cost of living alone would result in overpaying or underpaying by a significant margin. The opportunity with a remote workforce is bigger than just reducing payroll. It is also a means of increasing diversity and creating more opportunity for historically marginalized groups.

Fortunately, compensation software from PayScale provides employers with the ability to research pay for a specific position in a specific market using multiple sources of fresh and validated compensation data, including Company data, Crowdsourced data, and third-party survey data. With compensation software, HR can self-service job pricing for positions in new markets accurately and efficiently. In addition, PayScale also offers professional services to help customers define their compensation strategy, build out compensation structures, and analyze and monitor pay equity.

The future of work is data driven. Employees are increasingly expecting businesses to set pay fairly and transparently, manage pay increases consistently, and ensure internal pay equity across the organization. PayScale combines multiple sources of market data with an innovative technology platform to make managing compensation easier and more accurate than ever before.

Median Pay for Remote vs. Non-Remote Workers by Occupation

The median pay for remote versus non-remote workers varies across occupation and industry. When data is controlled, meaning when we are looking at compensation for the same job, higher pay for remote employees is recognized in the following occupations:

  • Media & Publishing (5.7%)
  • Marketing & Advertising (5.4%)
  • Sales (5.1%)
  • Information Technology (4.5%)
  • Human Resources (3.9%)

In contrast, occupations to make less at the median when working remote include:

  • Manufacturing & Production (-2.2%)
  • Construction (-1.5%)
  • Installation, Maintenance & Repair (-1.1%)

For more information about PayScale’s research on remote work compensation and guidelines for getting pay right, visit our website. To learn about PayScale’s compensation management software, ask for a demo.

About PayScale

PayScale offers modern compensation software and the most precise data-driven insights for employees and employers alike. More than 7,500 customers, from small businesses to Fortune 500 companies, use PayScale to power pay decisions for more than 23 million employees. These companies include City National Bank, Corizon Health, Expedia, Hawaiian Airlines, Hollister, Nestle, Perry Ellis, The New York Times, The Washington Post, and Wendy’s. For more information, please visit: or follow PayScale on LinkedIn at

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