Remote Hiring Narrows Salary Gaps — Except When It Doesn't

Tech · 4 min read

The remote-hiring wave of the early 2020s led many remote-first firms to flatten pay across geographies, initially benefitting candidates in lower-cost markets. As cost-of-living inflation varied and competition for senior talent rose, firms started reintroducing location multipliers to better match market realities.

Design leaders now use hybrid approaches: core roles tied to major hubs retain higher bands, while fully remote design positions use regionalized scales. Some companies introduced localized retention bonuses and commuter stipends as a middle path, aiming to keep global talent while managing payroll costs.

Candidates evaluating offers should ask specifically about how location affects base pay, bonus eligibility, equity refresh cadence, and relocation support. Recruiters emphasize clarity during the interview process; uncertainty about location-based pay remains a top reason candidates decline offers.