(X-posted in a few subs)
If there is one thing Americans can count on, it’s for corporations to find a way to make money. While employees are generally happy working from home (not having any commute time, saving gas, wear and tear on vehicles, not having to eat out for lunch, etc), I feel that companies will use this against employees by outsourcing work, not out of country, but to other states.
Hear me out: since so many people went remote, people have moved to areas for better standard of living, as they no longer need to stay by the office. Companies know this.
Take a look at the cost of living for New York, California, any larger state, and then compare to states such as Mississippi or Kansas. Now imagine a large corporation hiring for a decent remote position. What incentives do companies have to hire someone in state? Especially if they can get the same quality worker or better, based out of another state for half the salary/compensation package?
That being said, what about corporations manipulating the system by hiring workers in states with more laws governed to help employers, not employees?
Long term, this could mean that the average income in High Income areas could drop, and at the same time, Lower Income states could increase. A lot of people could be hurt and impacted by this dynamic change.
For instance, someone making living wage (according to google) in New York would make $21ish, while someone in Kentucky makes $13ish. That’s a 16k difference along regular living wage, not even to mention 75% perfect or top earners.
A company outsources 6 employees, they just added 100k to their bottom line simply based on remote employee placement. That’s just salary, not to mention any money they may save on health insurance, 401k matching, etc.
I feel like I am crazy when trying to explain my viewpoint, but I feel long term remote working will be bad for employees. Companies will always find a way to maximize profits, and they aren’t above hiring lower salary remote workers to do so. Nor are they above hiring workers based on location due to the states laws regarding work/employment.
Quit watching companies outsource work to their countries, start watching them outsource to other states. Call me crazy, but the power won’t stay in employee market for long.