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How do you compensate remote workers? Insights from People Mobility Alliance and friends

Community discussion about remote compensation – in-person event summary, Berlin, May 2022.

In collaboration with Deel, the platform built to help companies hire remotely, People Mobility Alliance hosted an intimate community event around the topic of remote work. The gathering brought together experts, service providers, employees and freelancers to discuss one of the most pressing topics in the world of people mobility today: remote work and how to compensate remote employees.

What does remote work mean?

Before diving into the main topic of remote compensation, initial discussions centered on the fundamental question: What exactly does remote work mean? This question uncovered further, more nuanced questions:

Does remote work refer to the popular “work from anywhere” concept?
Is it synonymous with working exclusively from your home?
If so, what difference does it make if you working in your country of residence or from abroad?

For professionals well-established in the people mobility, global mobility and talent mobility world, the answer to the last question is vital to understand due to compliance issues. While compliance is an inevitable topic in any conversation related to remote work, its prominence was kept to a minimum during this event to allow for further exploration of the main topic – remote compensation.

How can you implement remote work?

For many well-established companies, remote work is an entirely new concept. They are still in the initial stages of implementing remote working setups in their existing frameworks. Some industries are not in immediate need of remote work, leading to a diverse range of perspectives on what exactly remote work should and can look like.

The insights shared during our discussion spanned a wide spectrum and included contributions from talent and global mobility managers, recruiters, HR specialists and people managers.

One recruiter specialising in IT emphasised that remote work benefits in his industry may not be as crucial as salary compensation. Conversely, an HR manager highlighted the importance of integrating remote work into employee benefits packages to create attractive value proposition for candidates.

Industries often struggle with talent shortages in their local areas, therefore making it necessary to offer remote working benefits. According to the 2022 AIRINC Mobility Outlook Survey, 45% of companies allow remote work on a case-by-case basis for eligible employees. Meanwhile, 24% of companies incorporate remote work as part of their core offering, permitting staff to work remotely or from anywhere for short, defined periods in order to boost their attractiveness as an employer.

However, these “defined periods” can sometimes be as short as just 15 days. Many employees desire longer stints of remote working options. These constraints around short, fixed remote work periods are rooted in the complexities of setting up remote working benefits.

Addressing in-person roles

Many organisations have a mix of employees with varying work arrangements. In industries like manufacturing, there are many jobs that employees simply cannot perform remotely. This mix of arrangements brings up a fundamental question: How can a company justify treating employees differently based on the nature of their roles?

Our experts unanimously agreed that using the excuse “it’s the nature of the job” is insufficient. Instead, companies must offer other benefits to compensate for employees who cannot work remotely.

How can employers compensate remote employees?

Returning to the primary focus of our event, the panellists continued their discussion on compensating remote employees.

Starting with the considerations regarding the types of compensation packages that should be offered. Should relocation assistance, schooling for children, or housing allowance be part of the package? The resounding answer, as is often the case, was “it depends.” And indeed, there are several factors at play here. Some include:

Specific needs and preferences of the remote employee
Company policies and budget constratints
Cost of living in the old and new working locations
Tax implications and regulations
Housing availability and affordability
Employee’s family situation

There is no “one size fits all” solution for compensation packages for remote employees.

However, companies can, and should, effectively compensate remote employees moving forward. Deciding on compensation packages is complicated. There are many variables at play, including whether the move is initiated by the employer or employee, and whether the company is hiring the employee from their desired working location already.

Luckily, the salary compensation process is much less complicated. By considering the differences in the cost of livin, taxes, and housing, the employer can make comparisons with ease. Ultimately, when it comes to remote work, employers must respect their employee’s purchasing power without overcompensating with overly generous packages given to traditional expatriates.

AIRINC has developed a tool to help run such comparisons, providing potential employees with a base salary that allows them to keep their purchasing power. For companies with an existing salary range based on local employees, the AIRINC tool offers assessments of how the salary offered by the company aligns with the current one. This tool proves invaluable for employers preparing for salary negotiations.

Remote work is here to stay

While differing opinions emerged regarding the definition and fair compensation of remote work, our event attendees were united about one thing: remote work is here to stay. Several organisations in Germany, including Noah Mobility and CLEVIS GmbH, offer assistance to other companies and individuals seeking the advantages of remote work.

However, it is vital that companies carefully plan the integration of remote work into their frameworks and to ensure equitable compensation for all employees. Remote work packages should always be mutually beneficial. The hardest, and most important, part is getting it right before rolling it out throughout the company.

Summary

Our panellists and audience made this event a success for People Mobility Alliance. We gathered insights that shed light on the complexities and considerations that companies must navigate when looking to employ and therefore compensate remote employees. The resounding consensus is that remote work is here to stay, but developing mutually beneficial compensation packages remains a difficult and multifaceted challenge for everyone.

Although “it’s complicated” was the top answer when it came to compensation packages, this also highlights the necessity for developing a tailored approach towards employees. As the remote work revolution continues, employers must proactively prepare their strategies to ensure remote work is not just available to employees but is also beneficial to the parties involved.

Our event sponsors’ expertise serves as a testament to the importance of staying ahead in this transformative landscape.

Event Sponsors: AIRINC, CLEVIS Consult, deel, Noah Mobility

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Anas Abdi

Business Development Manager

Anas has a background in economics and discovered his passion for the Global Mobility industry a few years ago. With experience at a Big Four, he brings valuable expertise as a consultant. At PMA, he will support the streamlining of our operations and contribute to growth through his active role in sales and business development.

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Alexia Schmolling

Head of Operations & PMA Academy Lead

Alexia is a Project Consultant who joined the PMA in 2024. Her focus lies on international HRM, expat management and mental health. She is responsible for content and partner management, and brings valuable insights from her international experience.

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Ayesha Khan

Marketing & Event Manager

Khan is a data-driven marketing professional with expertise in performance marketing, analytics, and digital strategy. She focuses on optimising marketing campaigns, enhancing audience engagement, and driving business growth. With a background in Marketing
and Finance, Ayesha leverages data insights to develop effective strategies and deliver measurable results. She is currently pursuing her MSc in International Information Systems at FAU in Germany, integrating technology with marketing to drive innovation
and growth.

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Mira Pathak

Co-Founder

Mira currently works for AIRINC in Germany and has been working in Global Mobility since 2006. Of German-Indian origin, she has lived and worked in different countries but spent the majority of her working life in London before moving back to her native Germany in 2019. She believes that personal connection and experiences are the key to successful business interactions. And that even in business, it’s the person behind the employee that makes all the difference.

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Stefan Remhof

Managing Partner

Stefan joined the People Mobility Alliance at the beginning of 2023. He brings valuable insights into the academic side of People Mobility into the Alliance. Together with co-founders Daniel and Mira he is part of the PMA Management team.

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Daniel Zinner

Co-founder

Daniel is a global workforce consultant, podcaster and investor. Cultural diversity and global collaboration have been his passion for more than 20 years. He has worked in Global Mobility for various corporations in many different countries, but is currently based in Berlin, where he enjoys the city’s creativity, diversity and open mindset.

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International Talent Development

International talent development faces challenges like cultural differences, language barriers, and varying educational backgrounds, which affect training and communication. Aligning development programs with local norms while maintaining global standards is difficult. Differences in work ethics, leadership styles, and career expectations complicate talent retention and growth. Additionally, logistical issues like time zones and technology access can hinder the implementation of consistent development initiatives.

Our consulting approach on international talent development involves creating tailored strategies that respect cultural differences and align with global business goals. This includes designing cross-cultural training programs, leadership development initiatives, and succession planning. Our consultants address language barriers, diverse learning preferences, and varying educational backgrounds. They also advise on retaining top talent, ensuring global consistency in skills development, and leveraging technology to deliver effective training across regions.

Change Management

HR change management faces challenges like employee resistance, where fear of the unknown or discomfort with new processes can hinder acceptance. Communication breakdowns can lead to misunderstandings and decreased morale. Aligning leadership and getting their buy-in is critical but can be difficult. Managing the pace of change to avoid overwhelming staff, addressing skill gaps through training, and maintaining productivity during transitions are also significant hurdles. Additionally, measuring the effectiveness of change and making necessary adjustments is an ongoing challenge.

Our consulting approach on change management involves guiding organisations through transitions by developing strategies to address resistance, ensuring clear and consistent communication, and aligning leadership with change objectives. Our consultants design tailored training programs to close skill gaps and support employee adaptation. We help manage the pace of change to minimize disruption, maintain productivity, and implement metrics to measure success. Continuous feedback and adjustments are made to ensure a smooth and effective transformation.

Global Mindset

The challenges of a global mindset include navigating cultural differences, language barriers, and varying business practices, which can lead to misunderstandings and conflicts. Additionally, managing diverse teams requires sensitivity and adaptability to different communication styles and expectations. Balancing global strategies with local needs can be complex, and staying informed about international regulations, economic conditions, and political climates adds further complexity to decision-making processes.

Our consulting approach on global mindset involves guiding organisations to embrace cultural diversity, fostering cross-cultural communication, and aligning global strategies with local practices. We help teams to navigate international markets, adapt to varying regulations, and manage diverse teams effectively. Our consultants also emphasise the importance of cultural sensitivity, inclusivity, and adaptability in leadership to ensure successful global operations and sustainable growth.

Global Workforce Management

Global workforce management faces challenges like cultural differences, varying labour laws, time zone coordination, and communication barriers. It also involves managing remote teams, ensuring consistent training, addressing different work ethics, and navigating political and economic instability.

Our consulting approach helps to balance global policies. This involves advising on cross-cultural communication, aligning global and local HR policies, and navigating diverse labour laws. Our team offers strategies for managing the complexities of remote teams, optimising talent acquisition, and ensuring compliance with international regulations. Our consultants also address challenges in employee engagement, leadership development, and compensation strategies. We help organisations to effectively manage a diverse, global workforce while maintaining productivity and cohesion.

Expat Wellbeing

Expat wellbeing faces challenges such as adapting to new cultures, managing isolation, and balancing work-life dynamics in an unfamiliar environment. Expatriates often struggle with the loss of familiar social networks, language barriers, and cultural differences, which can lead to stress and burnout. Ensuring mental and physical well-being while navigating different healthcare systems and support structures adds complexity to the expatriate experience.

Our consulting approach on expat wellbeing focuses on providing comprehensive support to ensure expatriates thrive in their new environment. Our consultants offer resources and training to enhance cultural adaptation, promote mental resilience, and improve work-life balance. We help organisations implement wellness programs, foster strong support networks, and establish open communication channels. This approach strengthens expatriate well-being, increases job satisfaction, and enhances overall performance abroad.

Global People Collaboration

Global People Collaboration faces challenges such as coordinating across time zones, overcoming language barriers, and aligning different work styles and cultural expectations. Teams often struggle with maintaining clear communication and fostering trust in remote, cross-border environments. Misunderstandings can arise due to cultural differences, which may hinder collaboration and decision-making. Additionally, managing virtual teams can complicate relationship-building and team cohesion, leading to a lack of engagement and reduced productivity.

Our consulting approach to global people collaboration focuses on helping organisations enhance communication, trust, and teamwork in multinational environments. Our consultants provide training on effective virtual collaboration, cultural sensitivity, and inclusive communication strategies. We assist in developing processes that encourage knowledge sharing and cross-cultural understanding, ensuring that teams are aligned in their goals and can work efficiently across borders. This approach fosters stronger relationships, increases engagement, and drives productivity, creating a more connected and effective global workforce.

Sustainability

Sustainability faces challenges such as reducing environmental impact while maintaining operational efficiency, adapting to evolving regulatory requirements, and fostering a company-wide commitment to sustainable practices. Balancing short-term business goals with long-term environmental responsibility can be complex, as can tracking and measuring progress toward sustainability targets. Engaging employees at all levels to adopt sustainable habits and practices requires ongoing education and leadership support.

Our consulting approach on sustainability focuses on helping organisations integrate sustainable practices into their operations. Our consultants provide training on reducing environmental impact, optimising resource use, and meeting regulatory standards. We assist in developing sustainability strategies that align with company goals while fostering a culture of environmental responsibility. Through the learning of sustainable habits and continuous support, we help organisations track progress, engage employees, and achieve tangible sustainability outcomes.

Cultural Awareness

Cultural awareness faces challenges like overcoming unconscious biases and stereotypes that can hinder understanding and inclusion. Communicating effectively across different cultures can be complex due to language barriers and varying norms. Misinterpretations of behaviors or traditions may lead to conflict or offense. Integrating diverse cultural perspectives into decision-making can be difficult, and there’s the challenge of ensuring all employees feel respected and valued, which requires ongoing education and open dialogue.

Our consulting approach on cultural awareness involves guiding organisations to recognise and respect diverse cultural perspectives. Our consultants provide training to overcome biases, improve cross-cultural communication, and foster an inclusive environment. We help develop policies and practices that integrate diverse viewpoints into decision-making. Additionally, our consultants facilitate open dialogue and continuous learning, ensuring all employees feel respected and valued. This approach enhances collaboration, reduces conflicts, and supports a more cohesive workplace culture.

Local ecosystem connections

Local ecosystem building faces challenges like limited resources, including funding and talent, which can hinder growth. Fragmented networks and poor collaboration between stakeholders often lead to inefficiencies. There’s also a lack of trust and shared vision among participants. Regulatory hurdles and slow policy adaptation can stifle innovation. Additionally, small markets may struggle to attract investors and scale, while cultural resistance to change can impede progress.

Our consulting approach on local ecosystem connections involves helping organisations build and strengthen relationships within their community. Our consultants identify key stakeholders, such as local businesses, government entities, and nonprofits, and create strategies to foster collaboration and mutual support. We facilitate networking opportunities, promote knowledge sharing, and help align the organisation’s goals with community needs. Additionally, we assist in leveraging local resources, enhancing the organization’s reputation, and driving sustainable growth within the local ecosystem.

People-Focused Approach

A people-focused approach faces challenges such as balancing individual needs with organisational goals, which can lead to conflicting priorities. Ensuring consistent and fair treatment while accommodating diverse employee needs can be complex. Managing varying expectations and maintaining engagement across different personality types requires nuanced strategies. Additionally, measuring the impact of people-focused initiatives on overall performance and adjusting approaches based on feedback can be challenging. Ensuring resources are allocated effectively to support people-centered practices is also crucial.

Our consulting approach on a people-focused approach involves assessing organisational culture and individual needs to create strategies that prioritise employee well-being and engagement. Our consultants design tailored initiatives that align personal goals with business objectives, ensuring fairness and consistency. They facilitate effective communication, provide training, and support leadership in fostering a positive work environment. Our consultants also help measure the impact of people-focused practices, adjust strategies based on feedback, and optimise resource allocation to enhance overall effectiveness.

HR Digitalisation Project Implementation

Implementing HR digitalisation projects faces challenges like resistance to change, where employees may fear job displacement or struggle with new systems. Integrating new digital tools with existing legacy systems can be complex and costly. Ensuring data security and privacy compliance is critical, especially with sensitive employee information. Additionally, inadequate training and support can hinder adoption, while managing the project’s scope, budget, and timeline adds further pressure to successful implementation.

Our consulting approach on HR digitalisation projects involves addressing key challenges such as resistance to change by fostering a culture of openness and providing clear communication about the benefits and support available. Our consultants help ensure a smooth integration of new tools with legacy systems, minimising disruption and costs. We emphasise data security and privacy compliance, crucial for protecting sensitive employee information. Our effective training programs are designed to enhance user adoption, and consultants meticulously manage the project scope, budget, and timeline to ensure successful implementation.

Tech Vendor Screening

Tech vendor screening presents challenges like assessing vendor reliability, as companies must evaluate a vendor’s financial stability, reputation, and track record. Identifying the right fit requires aligning the vendor’s offerings with business needs, which can be difficult with technical complexities. Data security is a critical concern, demanding thorough scrutiny of the vendor’s security practices. Additionally, there’s the challenge of managing vendor lock-in risks and negotiating favorable contract terms.

Our consulting approach on tech vendor screening involves guiding businesses through selecting the best vendors by assessing their offerings, reliability, and compatibility with the organisation’s needs. Our consultants evaluate vendors’ financial stability, scalability, and long-term viability. We also ensure compliance with industry regulations, focus on data security, and mitigate the risk of vendor lock-in. Additionally, our consultants help align vendor choices with the company’s budget and growth strategies, ensuring a tailored, sustainable partnership.

Tech Vendor Selection

Selecting the right tech vendor poses challenges such as navigating a crowded market with numerous options, making it hard to distinguish between similar offerings. There’s a risk of vendor lock-in, where future flexibility is compromised. Assessing the vendor’s reliability, financial stability, and long-term viability is crucial. Compatibility with existing systems, data security, and compliance with regulations are also key concerns. Budget constraints and ensuring the vendor can scale with business growth further complicate the decision.

Our consulting approach on tech vendor selection involves helping organisations choose the best vendor to meet their specific needs. Consultants assess business requirements, compare vendors, and evaluate their offerings for compatibility, scalability, and security. Our consultants consider the vendor’s reputation, financial health, and customer support. We also negotiate contracts to avoid vendor lock-in and ensure cost-effectiveness. The goal is to align vendor capabilities with long-term business strategies, reducing risks and ensuring value.

Global Talent Pools

Global talent pools present challenges such as managing diverse skill sets, cultural differences, and varying educational standards. Time zone disparities can hinder collaboration, while legal and regulatory differences complicate employment contracts and compliance. Language barriers may affect communication and integration. Additionally, ensuring equitable opportunities and managing compensation across regions are difficult. Competition for top talent is intense, making retention a critical issue.

Our consulting approach on global talent pools involves helping organisations source, attract, and manage talent from diverse regions. It requires strategies for navigating cultural differences, ensuring compliance with local labor laws, and overcoming language barriers. Our consultants guide on optimising remote work, aligning global talent with business needs, and fostering collaboration across time zones. We also focus on creating equitable opportunities, competitive compensation packages, and effective retention strategies in a global context.

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