Due to Covid-19, work is evolving. In June 2020, a study by Gartner predicted that 48 percent of employees will be working remotely for some (if not all) of the time post-pandemic, compared to 30 percent pre-pandemic. And in May, Facebook announced it would allow employees to permanently work from home—with a catch. Facebook employees’ salaries will be based on their local cost of living if they don't live near the corporate HQ.
These and other new work arrangements brought on by Covid-19 will most certainly affect salary negotiations. And though you still need to strategize and prepare to successfully negotiate a high salary and compensation package, now that many positions are remote ones there are a new set of rules for salary negotiating.
Here are five tips for negotiating a lucrative salary for a remote position.
1. Highlight ROI
Throughout the interview process, address questions with answers that depict the return on investment (ROI) your decision making and team building has brought to your past employers. Showing repeatedly how you’ve made companies money will go a long way toward getting the salary you want. This is true now more ever, as employers are frantically trying to cut costs in a down economy.
2. Establish demand
Find out why the company you’re interviewing with is looking to hire in your lower-cost-of-living area and not in the local immediate area of its headquarters. If the answer revolves around reducing costs, you might have a harder time convincing this particular employer why they should pay you more. But if the answer is the talent pool is scarce for the position they’re looking to fill, then you might’ve found leverage to keep your high-salary request alive. So, establish exactly why an employer is looking in your area, and then point out how you're perfect for the position.
3. Shift from local to global
As you learn more about the job, inquire about the geographical locations of the teams you’ll be interfacing with and the cultural knowledge you’ll need to bring to the position. The more global the nature of your job, the more it’ll warrant additional compensation, regardless of where you live. Creating value and working productively remotely with a multicultural team and/or multi-geographic team is a compensated skill set all in its own class. Leverage this as you learn more about the job.
4. Focus on skills and results
When you focus on your skills and results, it's easier for the compensation decision to be based on those skills and results, as opposed to other factors. It's questionable for companies to focus pay grades on a lifestyle choice such as location. Companies wouldn't offer higher salaries to people because they’re married or have kids, would they? Or offer a higher salaries to people with expensive hobbies like race car driving, right? So why should where you decide to live affect your salary? Compensation should be based on the skills and the results you bring to the table. Period.
5. Consider non-monetary components
Will the company pay for your MBA? What about extensive time-off allotments? Are the medical benefits second to none? Will the company give you a childcare allowance working from home? These are options to consider introducing to the discussion alongside your high-salary requests based on research. These options don't automatically have to be in lieu of a higher compensation. Stay firm and seek out those benefits that matter most to you.
A final note
The bottom line is you, the job seeker and employee, shouldn’t have to take a financial hit when it comes to salary negotiations for remote work. No matter where you live, you should be paid fairly—your market worth—whether you’re working remotely for a Fortune 500 company or a boutique leader in your field. So don’t be afraid to negotiate, using the above tips to get what you deserve.
Lisa Rangel is the Founder and Managing director of Chameleon Resumes LLC (a Forbes Top 100 Career Website). She is a Certified Professional Resume Writer, Job Landing Consultant, and Recruiter. Lisa has been a moderator for LinkedIn's Premium Group since 2012. Chameleon Resumes reviews the goals of each client to ensure career documents serve their goals while meeting the needs of the prospective employers. Rangel has authored 16 career resources, and has an active YouTube Channel with regular tips and advice.