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(Note: A broader set of local laws precluding employers from asking about a candidate’s salary history serve a similar purpose, preventing prior pay discrepancies that might be due to discrimination from following an employee to his or her next workplace.)

Setting the Tone This latest executive order is another indicator that the federal government is taking pay equity seriously, setting the tone for the rest of the nation when it comes to implementing similar pay equity laws, said Shardé Skahan, partner, labor and employment at Seyfarth Shaw LLP.

Remote employees’ pay structure is determined by the office to which they are the closest.; ; ;Set pay rates based on the remote-work location of the worker, such as their home address.; ;Set pay rate based on the U.S. national level, adjusting upward for the remote-work location if in a more expensive geographic area.; ;Set all employee pay at the same level, irrespective of location.; Although you could structure your remote worker compensation as mentioned above, or perhaps a different way particular to your industry, be mindful that the approach you take is consistent and fair across all employees.After deciding your philosophy, let’s explore five best practices when determining how to pay remote workers.

“Employee resource groups and other DEI efforts such as having a diverse set of candidates or interview panels to promote diversity and belonging tend to have a lower risk profile,” Siu said.

As a result, when it comes to setting compensation for new hires in comparison to their colleagues, it may be advantageous to mind the midpoint of salary ranges, said Lori Wisper, managing director at WTW.

Henry said there are visual cues that may be more readily apparent in an in-office setting, such as an employee bracing a wrist injury, struggling to get up from their desk as a result of a back problem or showing symptoms of the flu, but when working remotely, an employee may work through their symptoms as a result of the diminished or non-existent feedback loop from coworkers or supervisors who in an in-office setting may encourage that employee to take leave.

;This payout pattern suggests extreme outcomes (both low and high payouts) are more frequent than normal distribution would predict.; ;However, if the company’s pay philosophy encourages ambitious goal-setting and embraces volatility, this approach may be appropriate.; ;Conversely, if the organization intends to provide stable, predictable compensation, it may need to adjust its goal-setting framework to reduce variability.; Blending Data and Strategy in Goal-Setting Goal setting in executive incentive plans is both an art and a science.

Providing an overly generous policy can set a dangerous precedent of inflated payout expectations and can also lead to financial strain on the organization.

Your approach to setting salary increase budgets should be taken with your organization’s financial and competitive situation in mind, rather than what you are reading in today’s headlines.