Join CodeSignal CEO Tigran Sloyan and Co-Founder Sophia Baik as they discuss the future of remote work in Data-Driven Recruiting Episode #37. In this episode you will learn about:
- Why remote hiring is scaling now
- Key benefits of remote hiring, not just remote interviewing
- How companies should think about compensation in the future of remote work
The Future of Remote Work is Here
Remote work has been gaining popularity for a long time. “But with more and more people working remotely these days, it’s starting to change many leaders’ perspectives,” says Sloyan.
Remote hiring offers advantages for both job-seekers and companies. For job-seekers, remote work creates economic opportunities for people worldwide, largely outside the US, who would not otherwise have been considered. Companies, in turn, are able to truly ‘go beyond resumes’ in accessing top talent globally. They also save on recruiting costs to attract and retain talent in less competitive markets.
With such clear benefits – and key enablers like technology and project management tools already in place – why haven’t more companies moved in this direction already?
The answer: inertia.
Remote work has been around for a while but is not the norm. A lot of companies are just starting to experience the unknown due to present circumstances; leaders are finding they can still build a great culture while running a remote company.
Whether you are simply expanding existing remote hiring practices or dipping your toe in for the first time, it’s important to first develop your philosophy around compensation.
Strive for Fairness
When evolving your company’s compensation structure for the future of remote work, let fairness be your guiding principle. If compensation decisions are not perceived to be fair, employees will rebel. And remember, your company’s structure may differ from others based on your unique mix of salary and stock compensation.
For some companies, the approach is location agnostic: no matter where you reside, you earn the same compensation for the same role because you deliver the same value to the company. The more common approach is taking multiple factors into account including the hire’s location, its local job market dynamics, and its local cost of living.
Empower Your Recruiting Team
Remote hiring creates an extra incentive for companies to provide opportunities where they are fewer, especially outside of the US and existing technology hubs. In most cases the cost of living is driven by the existence or abundance of opportunities; in other words, it’s already baked into the market rate. Companies should take note of emerging geographies that are exceptions and empower their recruiting teams with the flexibility to close the right candidate.
Embrace Radical Candor
Open communication will aid companies in making the transition from non-remote to remote hiring. Companies could opt to adjust down the salary for a lower cost of living for employees who seek to relocate or take a more nuanced approach, i.e. keep the compensation the same when the employee relocates but consider it an early promotion with the potential to delay the next promotion cycle. Whatever their decision, employers should have upfront conversations with their team seeking to relocate.
Talent leaders clearly have a lot to think about as we increasingly shift to a remote-based workforce. Learn more about how CodeSignal can help you navigate the exciting changes ahead.