57% Of Companies Want To Enact Geographic Pay Policies – Here’s Why That’s A Problem

A new survey finds that more companies are exploring discrepancies between remote and hybrid worker salaries. 

According to advisory firm Willis Towers Watson’s (WTW) 2022 Pay Clarity Survey, 17% of companies currently disclose pay ranges in states where it is not required by law. However, 62% said they had plans to do so in the near future. 

“Those employers that currently disclose pay range information but aren’t required to will often do so based on a couple of different factors,” said Mariann Madden, co-lead of North America Fair Pay at WTW.  

“Company culture and willingness to provide visibility and clarity into pay structures, programs, and policies [are all factors]. However, these companies often have the foundational job and pay structures already in place, which aids in communicating pay ranges to the workforce.”   

Over half of respondents said they are beginning to enact a geographic pay policy, where salaries will depend on where an employee lives. However, this strategy has been widely criticized by professionals, especially when it comes to gaps between remote and in-office workers.

For instance, Google has historically paid employees based on their geographic location, but the pandemic led tens of thousands of staffers to relocate. This means that some saw pay cuts simply for moving. 

With pay transparency laws becoming more common, companies like Google will need to navigate how to address disclosing pay ranges in job postings.  

While some organizations have tackled this by excluding applicants from certain states like Colorado, the more common these laws become nationwide, the less organizations will be able to avoid these policies.