Two candidates doing identical work can be paid very differently, and the reason is policy rather than performance.
The three models
- Location-adjusted: your pay follows local market rates. Most common.
- Single global band: one rate for the role anywhere. Rare and usually at well-funded companies.
- Value-based: paid for the role's contribution regardless of geography. Rarest.
Find out which before you negotiate
Under location-adjusted pay, arguing "this role is worth more" fails; arguing about which market they benchmarked against can work. Under a global band, individual negotiation is genuinely limited.
The question that gets an answer
"How do you set remote compensation — is it benchmarked to my location or to a single band?" It is a normal question and the answer shapes everything after it.
Common questions
Is location-based pay fair?
It is contested. Employers argue it reflects local markets; critics argue equal work deserves equal pay. Either way, know the policy before negotiating.
Will my pay drop if I move somewhere cheaper?
Under location-adjusted policies, sometimes yes. Ask what happens if you relocate, before you sign.