Getting ahead of the 2021 shift to skills-based pay & benefits

With the foundations already in place, and with the potential boost it could bring to company margins, the promise of skill-based pay will be hard for companies to turn down.

With remote work looking like a staple in the new normal, companies are starting to rethink the employment and benefits process entirely. It began somewhat subtly, with a shift to variable pay based on location; with organizations like Facebook announcing that, although employees can work from home for the next 5 to 10 years, their salaries are likely to be adjusted in line with the cost of living in an individual’s chosen location. Now, the compensation structure is changing as well.

As everyone settles into the COVID-ushered remote-working revolution, businesses, looking to cut costs wherever possible, are hiring from cheaper sources overseas. Remote learning is expediting the globalization of expertise, leading to a situation in which companies have a more diverse pool of talent to pick from—and it’s opening the doors to a new model of work: skills-based remuneration.

Related: Redefining compensation strategies in the remote work era