With the recent lockdowns, people started working from home. That also means that more companies have started hiring people that cannot physically show up to work. Does not physically working in an office mean that they contribute less to the company? No. That is why they should make money based on how much they contribute to the company. Not where they live, what their gender is or whether or not they show up to work.

Equality in Pay Scales, A Case of Remote Work

Same Knowledge but Different Salaries?
Everyone spends a similar amount of money on their education, regardless of where they studied. So why is it that some people earn less than others despite being capable of doing the same work?

Women earn 26% less than their male counterparts despite being able to do the same job. Both genders do the same work so, why does one group make more than the other? Pay inequity is becoming more blatant as the level of education is rising.

Pay Inequity Stunts Economic Growth
Although paying your workers smaller amounts will help your company make some small monetary gains, it is harmful to society. Why is that?

The people you pay less cannot afford everything that they need. That means that there is less money flowing back into the economy. Pay equity would lift millions of people out of poverty. Not only that, it would reduce dependence on welfare programs and taking on debts to pay for necessities.  It would also let people comfortably retire instead of having to retire into poverty.

Companies With Pay Inequity Perform Poorly
With a choice between a company that pays you according to your work and a company that pays you less than you should earn, EVERYONE would choose the company that pays you according to your work. If you do not reward the hard work that your employees put in, they will stop putting in the hard work.

Even companies dealing with a high turnover rate can resolve their problems by offering pay equity. That also means that there is a large market of talent still waiting to be accessed.

Pay Equity Is A Win-Win Situation
According to a survey, companies can save up to 11,000$ every year for every employee that works remotely from home. How?

Reduced office costs, turnover and absentees are the main reasons. You can also earn more money by letting your employees work from a place where they are comfortable because that increases productivity. BUT you might be worried about your employees becoming work-shy. That is how Pay Equity comes into play; if they do not contribute to the company, they will have to deal with the consequences. There are even more benefits of Pay Equity for employees that work from home. Not spending money on transportation, clothing, and meals means they can save that money or use it elsewhere.

Location-Based Salaries Are a Cause Of Disagreements
Paying your employees based on their location creates a conception of bias. If someone has to move to a cheaper area, do they have to take a pay cut? They are still putting in the same effort for the company. That is why a location-based salary system is inefficient. It creates distrust and increases the turnover rate for a company.

Employees have expressed an interest in working remotely because that suits them better, but does that mean they have to deal with a pay cut despite contributing the same way to the company? As lockdowns ease around the world, salaries are already decreasing for employees that want to remain remote. That is bound to cause problems later on.

Paying your employees based on how much they contribute to your company is the easier way to handle salaries. With the promise of an equal reward for their effort, employees will continue to work harder. You can grow as a company by treating your employees fairly.

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