Remember a couple weeks ago when we discussed potential work-from-home adjustments for salaried workers now living in lower COL areas thanks to the Rona? In case you forgot, the gist of it is that this is already happening in the tech industry, so there’s no reason to assume accounting couldn’t possibly follow suit.
The comments on that article were about as I expected them to be, and I hope any big brains running the show at accounting firms take them into account before coming up with any grand plans to save on salaries while office space remains mostly empty. Knowing what we know about said big brains, I won’t be holding my breath. Nor should you, which is why I thought this recent New York Post article was both interesting and unfortunately relevant. Let’s take a look:
Not long ago, a friend told me he’d bought a new house.
“Congratulations!” I said. “Where will you be living?”
“I can’t tell you,” was the somewhat puzzling answer. All I could guess was that he might not have closed on the new house yet and didn’t want to jinx the sale.
But then, just a month later, the same thing happened again. Another friend, another new house, and a secret location. I really began wondering what was going on.
I’d still be in the dark if not for a real-estate agent who filled me in on the latest trend among homebuyers. With more people working remotely due to COVID-19, quite a few companies are basing salary decisions on their employees’ home ZIP codes.
So yeah. Hell, even if you once enjoyed an entire downtown condo to yourself but now find yourself crammed into a dingy twin bed in a dark corner of your mom’s basement because things are so tough out there it’s probably best to keep that information to yourself. Not just generally, I mean.
As yet, we haven’t seen indications of any accounting firms considering COL adjustments for staff who have moved to lower-cost areas during the pandemic. That said, we do know that COL adjustments exist so it stands to reason that firms that agreed to pay you more because of where you live might, should this thing drag on much longer, start to ask themselves if they should pay you less for the same reason.
For that reason, we wouldn’t recommend giving HR your mom’s ZIP code. Not if mom lives in one of those cheap rural towns with only one Pokestop and a Piggly Wiggly. If the work is done why does it matter where you did it? The less they know, the less they can use against you when belts start tightening.