“My question is: Since they are willing to accept remote workers, then why are they not making the cut across the board for all employees As soon as they deem their position remote-work-okay?“
Because we prefer in-person workers.
I’m opening up a new office in Vancouver. If I want employees to have a decent work-life balance, and be able to afford to live in the area rather than spending hours commuting, I need to pay a wage that makes that possible.
If I’m hiring remote and not getting all the benefits as an employer that come with office work, then it’s less valuable to me, and the market rate is lower. Lots of people want their “live in podunkville” remote work, and so the supply of labour is much higher.
Since the price of a thing is (for the most part) where supply meets demand, that means lower wages. It gets the double whammy of us being willing to pay around 30% less to begin with due to the loss in quality and performance, as well as the competition being willing to go much lower for higher quality employees (who value lower cost of living, and work from home flexibility).
We have a general policy of paying significantly above market wages to attract better talent (roughly double), but that’s still related to the prevailing market wage for the position.
In other words, we don’t make the cut across the board as soon as we make the position remote eligible, because we don’t want remote workers. We tolerate it, when business and operational necessity require us to do so. It introduces a lot of operational headaches, hurts our security posture, removes some of the synergistic effects of having people working in proximity (especially with regards to junior developers working with senior developers), and in general contributes to human isolation especially for certain types of developers.
If we actually wanted remote workers, then the lower wages would already be priced in.