Telecommuting and COL Adjustments
BarbieW
117 Posts
I have an interesting situation. In the past, we've had a few people who move to different states. We agreed to have them continue in their positions on a telecommuting basis. However, we did a COL and salary differential analysis and made adjustments to base salary accordingly. In a case where the person moved to a part of the country with a much lower cost of living, we adjusted the salary down significantly.
Now, we have an employee who wants to telecommute part of the year from Florida and will work in the office the other part of the year. They are going to a location in Florida with a considerably lower cost of living. How can we handle this and still be fair to the ones telecommuting full time who took lower salaries? Any ideas/suggestions would be a appreciated!
Comments
Here are some options:
Take the midpoint between the two respective COL adjsuted base pay rates and weight according to the percent of year to be spent in each.
Change their pay depending on where they are stationed at the time the pay was earned.
Pay the lower rate
Pay the higher rate
I like the first option best if their schedule is set in stone. If they're in Florida or in the office according to a secret clock, then I'd prefer option two. Either of these options is more work to monitor and adjust in payroll but are more fair to both parties than either of the other two much simpler to administer options. Someone probably has a more clever way to approach this.
TXHRGuy - I was thinking the same thing. Take the midpoint of the two different pay rates. I had also thought about changing the pay, depending on the location, but that just seemed like more of an administrative headache then the other option.