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Hi there. I think you make an excellent point. However, I would like to understand how you make this important distinction when dealing with a "virtual" workforce where the line drawn in the sand that distinguishes "we pay based upon the market indicators of where you work, not where you live" now become one and the same.


Thanks for the comment and question. I think organizations who employ virtual workers have to have a clear and purposeful pay philosophy that addresses this question. That philosophy, and the organization's position on how it pays virtual workers, probably ties back to the rationale and situation that drove it to employ virtual workers in the first place, along with the labor market it faces for this kind of talent.

I can see this going in a number of possible directions, including:

1. Paying workers in line with the labor market where they reside (even if this is high-market locations like New York or Los Angeles), in response to a difficulty in recruiting and retaining the necessary talent - and it being a seller's market.

2. Paying workers in line with the labor market where the organization's offices are located (even if this is a low-market location like Tampa or Greensboro), in response to the fact that these virtual opportunities are in high demand, it is a buyer's market, and the organization is easily able to fill any openings it has.

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About The Author

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    Compensation consultant Ann Bares is the Managing Partner of Altura Consulting Group. Ann has more than 20 years of experience consulting with organizations in the areas of compensation and performance management.

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