Virtual 101: How to Compensate Remote Employees
Long gone are the days when the words “work” and “office” are equivalent to one another. As remote work continues to become more and more popular, it’s no surprise that over fifty percent of the U.S. workforce has adapted.
This innovative work manner isn’t on the rise in the U.S. alone; it’s becoming a global trend. One company might even have multiple employees working remotely, each from a different geographic location. Different locations mean different costs of living, payment methods, as well as tax and social security regulations. So how would an employer fairly compensate all of their freelance employees?
Here are 4 factors to help you distribute fair compensation to all of your employees:
1. Determining the Value of Compensation
Different employers have different methods of determining compensation rates for remote workers, but everyone has their own basis for the rates they set. Taking the level of skills and experience that an employee offers into consideration, there are three common ways of setting these rates:
- Based on the average salary rate determined in the employer’s company.
- Based on the location of the remote worker and their standard-of-living needs.
- Based on the global trend of the market, regardless of location.
2. Choosing the Right Payment Service
Sending payments may not be too troublesome for employees working remotely in the same state, but that’s not the case with freelance workers living in different states or even countries. You want to choose a reliable and safe method of money transfer and preferably one that charges low to no fees per transfer. With a global network of 385,000+ locations, you’ll be able to transfer money through Ria Money Transfer to your remote employees, no matter their location. Choosing the right payment service is critical, as many viable options can be too expensive, limited to certain locations, or difficult to withdraw.
3. Providing Tools for Best Performance
There are a lot of things that in-house employees take for granted, some of which are the office space, equipment, and tools they need to use as a part of their job. Independent workers set up their own workspace, many of whom might work in cafes or co-working spaces. Their fair compensation should afford the tools they use for work, which can include laptops, team communication applications, and any other technology tools necessary for the job.
4. Offering Perks for Remote Workers
Many studies have shown that remote employees show more productivity than in-house employees. And yet, many of them are compensated with lesser rates than their counterparts. It’s only fair to propose that, while having the flexibility to work out of office is a great perk, they should be offered more perks, such as development opportunities, time-off, or coverage of the workspace expenses.
As the popularity of remote work continues to rise, employers seek to adapt to the growing trend. Finding a fair way to compensate a team of such employees can be difficult, but after determining the compensation value, there are many tools to make it easier. Taking into account the latest tech tools and customized perks will also ensure you maintain your remote employees’ loyalty and supreme performance.