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5 key considerations for determining the salary of your remote workers
Safira Adnin
August 27, 2024

Growth and adaptation in the business world often come with their own set of challenges. According to a Gartner survey, a critical talent shortage is the biggest factor impacting organizations, prompting over 50% of them to look for alternatives to meet their needs. One such alternative is expanding their talent search globally through remote working schemes.

The trend of remote working, increasingly popular among the younger generations, is also prompting companies to revise and possibly change their work structures and compensation models. In fact, 62% of employees hope their employers will allow them to work remotely in the future.

The scarcity of talent, especially in specific fields like information technology, has ushered us into an era where employees have greater bargaining power in demanding flexibility and other benefits.

With changing worker preferences and companies increasingly understanding the need for remote work, the question arises: How do you properly determine the salary for a remote worker, especially for those in critical roles?

Remote working vs. work from home: What’s the difference?

Remote working allows talent to complete their work from anywhere other than the office, like at home, a cafe, or a co-working space. Some companies require remote talent to occasionally come to the office, or not at all.

Likewise, some companies set work hours that all employees must follow, including those working remotely. However, many also offer flexible working hours, as long as the work is completed effectively.

Work From Home, on the other hand, is a work system specific only to working from home.

Each option has its own advantages and disadvantages. The benefits for remote workers include the ability to create a work environment that suits their style. For those who perform best amid a bustling crowd, working from public places like cafes with internet connections is ideal.

For those who prefer quiet, working from a co-working space or other quieter locations is possible. Remote work allows individuals to maximize their productivity in a manner that suits their personality and preferences.

Work From Home also has benefits, such as not having to spend time commuting to the office. It’s particularly suitable for those with home responsibilities, like caring for children or sick family members.

However, setting boundaries between work and home life can be challenging. Creating a conducive work area at home is also necessary for those who choose to work from there.

What is a remote working policy?

If your company is starting or already implementing a remote working system, it’s crucial to formulate policies that define the boundaries remote workers should adhere to.

A Remote Working Policy will cover regulations regarding:

  • Who is eligible to work remotely
  • How many days employees can work remotely
  • Professional expectations for remote workers
  • Equipment needs for working from home
  • Compensation policies related to transportation or other remote work expenses
  • Network security
  • Tracking work hours, especially for hourly paid workers

Why have a remote working policy?

Setting Expectations

A well-defined, agreed-upon, and communicated remote working policy helps align expectations. Thus, companies can understand if a remote worker can’t join weekly meetings, for example. Likewise, remote workers can adjust their schedules to fit the agreed-upon work hours.

Bringing Competitive Advantages

While the responsibility of remote working policies might lie with HR, strategically implemented, its impact benefits more than just the HR department. From reducing office rental and infrastructure burdens to employing talented individuals not residing near the office, and retaining them, are all advantages.

Therefore, it’s crucial for companies to find the best ways to implement remote working, then compile these insights into a policy executed collectively.

5 key considerations for determining the salary of your remote workers

Setting the right salary for remote workers involves several key considerations that companies need to pay attention to. Here’s how you can go about it in a fair and competitive manner:

1. Analyze the cost of living in the employee’s location

Each location can have different standards for the cost of living. Before determining the salary amount, it’s wise to conduct thorough research on the cost of living in the worker’s area. This includes accommodation, transportation, food, and other basic necessities.

For example, living in a major city like Jakarta certainly costs more compared to rural areas in Central Java. Therefore, adapting the salary scale based on location can be a way to provide fair compensation to employees.

2. Evaluate your employee’s experience

The work experience and educational background of an individual play a significant role in determining their salary. A professional with extensive experience typically has deeper skills and knowledge.

Besides experience, education is also a consideration. For instance, someone with a master’s degree may have more in-depth theoretical knowledge compared to someone with a bachelor’s degree. Ensure to adjust the salary based on a combination of these two aspects.

3. Assess the value of job duties and responsibilities

It’s not just the job title that matters, but also the details of the work involved. An employee might have the same job title as another, but with different responsibilities.

For example, a project manager handling international projects will naturally have a different workload compared to a project manager overseeing local projects. Therefore, it’s crucial to consider the duties and responsibilities when determining the salary scale.

4. Conduct salary benchmarking

When determining competitive salaries, it’s essential to look at the current industry standards. Use data from salary surveys, industry reports, or HR consultants to find out the average salary for specific job positions.

This ensures that your company not only offers fair compensation to employees but also remains competitive in the market. As a result, you create a magnet for attracting and retaining the best talent.

5. Maintain open communication about salaries

When communicating with remote workers, it’s important to clearly explain their salary structure. This discussion can include base salary, potential bonuses, and other additional benefits.

Moreover, if there are possibilities of salary changes or other incentives in the future, communicate these clearly. Open communication ensures that employees feel valued and understand the company’s expectations.

Build your borderless team with Glints today

Glints TalentHub is our complete talent solution that covers all aspects of talent acquisition, management, and development. Our team can help you access the extensive talent pool across Southeast Asia and build great teams quickly and affordably. Simply schedule a call with us and our dedicated experts will be thrilled to guide you in your journey towards building a borderless team.


This article is brought to you by Glints TalentHub. Leading companies are actively building their borderless teams in Southeast Asia, Taiwan, and beyond. However, the prospect of going borderless can be daunting due to complex regulations and cultural ambiguities. With Glints TalentHub, you’ll have a dedicated team of in-market legal, HR, and talent experts by your side at every step of the way.

Glints TalentHub offers an end-to-end, tech-enabled talent solution that encompasses talent acquisition, EOR, and talent development. We empower businesses to leverage the strengths of regional talent efficiently to build high-performing, cost-efficient teams.

Schedule a no-obligation consultation with our experts to receive a tailored proposal today. 

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