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What effect will remote working have on salaries?

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Really interesting debate, if companies decide to operate fully remotely with their tech workforce moving forward what impact will it have on salaries?

We have seen many companies, Twitter, Facebook, Google, Amazon to name a few change their policies on WFH. However, we are seeing more SME’s, start-ups and perhaps smaller brands implementing similar policies for staff moving forward. 

Throughout the UK, there has been quite a big difference on salaries for developers depending on location of work, mainly coming down to cost of living for that particular office location. For example, two equally skilled developer’s living in different areas of the UK, can be paid significantly different, when I say significantly different, it can be as high or as low as 40% in my experience. This isn’t me saying this is right or wrong, but this has just been the way things have been since I began my recruitment career and I believe even a long time before that.

Now if companies decide to go fully remote, will there be occasions where two “equally skilled” developers are available and interviewing for the same role, but with a significant disparity on salary that one candidate is asking for against the other?

I strongly believe you pay salaries on output and the value the individual adds. Many companies operating fully remotely are able to cast the net wider so to speak, perhaps employing developers remotely in areas where cost of living isn't as expensive as others.

I hasten to add not all developers or companies want their staff to work remotely. I have spoken to a huge number of individuals who are desperate to get back in the office, albeit with slightly more flexibility than they had before.

Every individual is different, which is why you should have a balance and give the option and freedom to your staff moving forward , however the question is will companies operating fully remotely be able to hire equally skilled candidates at a lower-priced rate given the location.

What impact do you think remote working will have on salaries? 

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