{"id":1290,"date":"2021-10-15T18:43:00","date_gmt":"2021-10-15T17:43:00","guid":{"rendered":"https:\/\/rethinkq.adp.com\/?p=1290"},"modified":"2024-09-03T21:59:49","modified_gmt":"2024-09-03T20:59:49","slug":"danger-pay-in-the-pandemic","status":"publish","type":"post","link":"https:\/\/rethinkq.adp.com\/danger-pay-in-the-pandemic\/","title":{"rendered":"Swimming with sharks: Danger pay in the pandemic"},"content":{"rendered":"\n<header class=\"entry-header bg-adp-tan block--article-header alignfull block--article-header\" >\n\n  \n\n<figure class=\"wp-block-image size-full entry--image\"><img decoding=\"async\" width=\"1920\" height=\"1282\" src=\"https:\/\/rethinkq.adp.com\/wp-content\/uploads\/2021\/10\/clyde-thomas-jKK6kjyMdpk-unsplash.jpg\" alt=\"\" class=\"wp-image-1291\" srcset=\"https:\/\/rethinkq.adp.com\/wp-content\/uploads\/2021\/10\/clyde-thomas-jKK6kjyMdpk-unsplash.jpg 1920w, https:\/\/rethinkq.adp.com\/wp-content\/uploads\/2021\/10\/clyde-thomas-jKK6kjyMdpk-unsplash-300x200.jpg 300w, https:\/\/rethinkq.adp.com\/wp-content\/uploads\/2021\/10\/clyde-thomas-jKK6kjyMdpk-unsplash-1024x684.jpg 1024w, https:\/\/rethinkq.adp.com\/wp-content\/uploads\/2021\/10\/clyde-thomas-jKK6kjyMdpk-unsplash-768x513.jpg 768w, https:\/\/rethinkq.adp.com\/wp-content\/uploads\/2021\/10\/clyde-thomas-jKK6kjyMdpk-unsplash-1536x1026.jpg 1536w, https:\/\/rethinkq.adp.com\/wp-content\/uploads\/2021\/10\/clyde-thomas-jKK6kjyMdpk-unsplash-375x250.jpg 375w\" sizes=\"(max-width: 1920px) 100vw, 1920px\" \/><figcaption class=\"wp-element-caption\"><a target=\"_blank\" href=\"https:\/\/unsplash.com\/photos\/jKK6kjyMdpk\" rel=\"noreferrer noopener\">Clyde Thomas<\/a>&nbsp;Unsplash<\/figcaption><\/figure>\n\n\n\n<div class=\"wp-block-group entry--title-wrapper\"><div class=\"wp-block-group__inner-container is-layout-flow wp-block-group-is-layout-flow\"><div class=\"entry--social-share\">\n  <ul>\n    <li><a href=\"https:\/\/www.facebook.com\/sharer\/sharer.php?u=https:\/\/rethinkq.adp.com\/danger-pay-in-the-pandemic\/&#038;t=Swimming with sharks: Danger pay in the pandemic\" target=\"_blank\"><img decoding=\"async\" src=\"https:\/\/rethinkq.adp.com\/wp-content\/themes\/rethink-quarterly\/img\/facebook.svg\" alt=\"Facebook logo - click to share this article on Facebook\"><\/a><\/li>\n    <li><a href=\"http:\/\/twitter.com\/share?text=Swimming with sharks: Danger pay in the pandemic&#038;url=https:\/\/rethinkq.adp.com\/danger-pay-in-the-pandemic\/\" target=\"_blank\"><img decoding=\"async\" src=\"https:\/\/rethinkq.adp.com\/wp-content\/themes\/rethink-quarterly\/img\/twitter.svg\" alt=\"Twitter logo - click to share this article on Twitter\"><\/a><\/li>\n    <li><a href=\"https:\/\/www.linkedin.com\/sharing\/share-offsite\/?url=https%3A%2F%2Frethinkq.adp.com%2Fdanger-pay-in-the-pandemic%2F\" target=\"_blank\"><img decoding=\"async\" src=\"https:\/\/rethinkq.adp.com\/wp-content\/themes\/rethink-quarterly\/img\/linkedin.svg\" alt=\"LinkedIn logo - click to share this article on Facebook\"><\/a><\/li>\n  <\/ul>\n<\/div>\n\n            <a class=\"entry--tag tag-style\" href=\"https:\/\/rethinkq.adp.com\/time-for-universal-basic-income\/\">Features<\/a>\n\n        \n  <h1 class=\"entry-title\">Swimming with sharks: Danger pay in the pandemic<\/h1>\n\n\n<p class=\"is-style-summary-style\">Some jobs are more dangerous than others, and putting a price on that risk is necessary to entice key talent to take on the challenges.<\/p>\n<\/div><\/div>\n\n\n  <div class=\"entry--meta content-width\">\n           <p class=\"authors\">By\n                        <a href=\"https:\/\/rethinkq.adp.com\/author\/jessica-mudditt\/\">Jessica Mudditt<\/a>\n\n             \n         \n     <\/p>\n    \n  \n  <p>15 October 2021  <span class=\"desktop-only\">\u2014<\/span> <a href=\"https:\/\/rethinkq.adp.com\/issue-3-place\/\">Issue 3: Place<\/a> \n  <\/div><!-- .entry-meta -->\n\n<\/header><!-- .entry-header -->\n\t<div class=\"entry-content content-width\">\n\n\n\n<p>Before the pandemic, Jeff Wilson traveled often as a regional connectivity engineer in the oil and gas industry.&nbsp;<\/p>\n\n\n\n<p>Between 2015 and 2020, his work included multiple-week trips to places including Cameroon, Nigeria, Trinidad, Brunei, Singapore and Russia, as well as assignments in Australia, his home country. His skills are incredibly specialized: He estimates there are only 100 people in the world who know how to do his job. And a certain level of risk simply comes with the territory.<\/p>\n\n\n\n<p>\u201cThere were all the hazards that are part of the oil and gas industry, such as hazardous materials and high pressure,\u201d he says, \u201cand then in some countries, there\u2019s also political unrest and violence.\u201d Oil is sometimes stolen directly from the pipeline, and there is danger of attacks at worksites.<\/p>\n\n\n\n<figure class=\"wp-block-pullquote\"><blockquote><p>I remember looking over the edge of the rig into the water, and there were thousands of sharks swimming around.<\/p><cite>Jeff Wilson<\/cite><\/blockquote><\/figure>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"alignright size-large is-resized\"><img decoding=\"async\" width=\"769\" height=\"1024\" src=\"https:\/\/rethinkq.adp.com\/wp-content\/uploads\/2021\/10\/Jeff-Wilson-769x1024.jpg\" alt=\"\" class=\"wp-image-1292\" style=\"width:385px;height:512px\" srcset=\"https:\/\/rethinkq.adp.com\/wp-content\/uploads\/2021\/10\/Jeff-Wilson-769x1024.jpg 769w, https:\/\/rethinkq.adp.com\/wp-content\/uploads\/2021\/10\/Jeff-Wilson-225x300.jpg 225w, https:\/\/rethinkq.adp.com\/wp-content\/uploads\/2021\/10\/Jeff-Wilson-768x1023.jpg 768w, https:\/\/rethinkq.adp.com\/wp-content\/uploads\/2021\/10\/Jeff-Wilson-1154x1536.jpg 1154w, https:\/\/rethinkq.adp.com\/wp-content\/uploads\/2021\/10\/Jeff-Wilson.jpg 1538w\" sizes=\"(max-width: 769px) 100vw, 769px\" \/><\/figure><\/div>\n\n\n<p>In some places, Wilson was housed in specific facilities for employees. When he stayed in hotels, he was often under strict instructions not to leave the premises. He\u2019s been ferried in bulletproof cars with a front and tail escort; sometimes the risk of highway bandits was so high that he had to be helicoptered into a worksite.&nbsp;<\/p>\n\n\n\n<p>Before working on an offshore rig in Western Australia, Wilson received training on how to escape from a helicopter if it crashed into the water.&nbsp;<\/p>\n\n\n\n<p>\u201cAfter we arrived, I remember looking over the edge of the rig into the water, and there were thousands of sharks swimming around,\u201d he says.&nbsp;<\/p>\n\n\n\n<p>A hardship allowance is compensation for an employee doing dangerous work or experiencing a significant deterioration in living conditions when working in a new location for a certain period of time. While the incentive is colloquially called danger pay, hardship pay or hazard pay, companies tend to avoid such terms because of perceived negative connotations or legal ramifications.&nbsp;<\/p>\n\n\n\n<p>Instead it\u2019s often referred to as a cost of living allowance (COLA), aiming to entice key personnel to accept an international transfer. \u201cUltimately, it&#8217;s the same thing,\u201d says Sebastian Reiche, a management professor at IESE Business School in Spain. \u201cCompensation is a very delicate issue.\u201d<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Calculating risk<\/h2>\n\n\n\n<p>Most companies do not disclose the specifics of what they pay to the media or potential recruits. For Wilson, each of his work site locations are given a hardship rating by his company, scored from one to 100. The rating is calculated according to the level of danger, a location\u2019s remoteness, the quality of the lodgings, and whether English is spoken. In Australia, all of the site ratings were under 35. In Nigeria, the site rating was 85, and so Wilson was paid a 25% premium on top of his base salary and overtime during a 10-day assignment there.&nbsp;<\/p>\n\n\n\n<p>American consulting firm Mercer is in the business of pricing risk for expat assignees. Its <a href=\"https:\/\/mobilityexchange.mercer.com\/location-evaluation-reports\" target=\"_blank\" rel=\"noopener\">location evaluation<\/a> reports assess factors that make up daily life in a particular place: housing, pollution, disease and sanitation, medical and education facilities, remoteness, political violence, and the availability of goods and services. The final evaluation score is a recommended premium that represents a percentage of an employee&#8217;s pay to be added to their base salary during the assignment.&nbsp;<\/p>\n\n\n\n<p>Reiche suggests that even before Covid-19 drastically cut mobility, there was a trend over the past 15 years of companies looking to cut costs. Sending staff abroad can be incredibly expensive.<\/p>\n\n\n\n<p>\u201cRather than moving whole families, there have been shorter-term assignments of up to a year, and business travel has increased greatly,\u201d Reiche says. \u201cThere has also been the phasing out of an expat salary: A person gets paid an expat\u2019s salary for three years and then afterwards, if they want to stay, they are gradually shifted to a local salary. Another approach is to move the employee from a developing country to the headquarters, rather than the other way around.\u201d<\/p>\n\n\n\n<p>In the early pandemic, some U.S. states and cities <a href=\"https:\/\/www.adp.com\/spark\/articles\/2021\/03\/march-state-and-local-legislative-updates.aspx\" target=\"_blank\" rel=\"noopener\">mandated<\/a> hazard pay increases for essential workers whose jobs could not be done at home \u2014 manufacturing, retail and healthcare workers, for example. A number of large companies also offered temporary hourly pay increases and bonuses to frontline workers who risked contracting Covid-19.<\/p>\n\n\n\n<p>Pricing danger and hardship is inherently subjective. It depends a great deal on an individual\u2019s life experiences and background. According to Reiche, companies aim for consistency and a perception of fairness when creating standardized compensation rates.<\/p>\n\n\n\n<p>\u201cPutting a value on risk is an inexact science,\u201d he says. \u201cIndividuals have very different risk profiles and perceptions of what it will be like to live and work in a particular area. Even though one person might see something as a bigger risk than another person, there needs to be very clear guidelines of how much that risk is worth.\u201d<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Lemurs and Kalashnikovs&nbsp;<\/h2>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"alignleft size-large is-resized\"><img decoding=\"async\" width=\"768\" height=\"1024\" src=\"https:\/\/rethinkq.adp.com\/wp-content\/uploads\/2021\/10\/Tsimanampetsotsa-National-Park-768x1024.jpeg\" alt=\"\" class=\"wp-image-1293\" style=\"width:384px;height:512px\" srcset=\"https:\/\/rethinkq.adp.com\/wp-content\/uploads\/2021\/10\/Tsimanampetsotsa-National-Park-768x1024.jpeg 768w, https:\/\/rethinkq.adp.com\/wp-content\/uploads\/2021\/10\/Tsimanampetsotsa-National-Park-225x300.jpeg 225w, https:\/\/rethinkq.adp.com\/wp-content\/uploads\/2021\/10\/Tsimanampetsotsa-National-Park-1152x1536.jpeg 1152w, https:\/\/rethinkq.adp.com\/wp-content\/uploads\/2021\/10\/Tsimanampetsotsa-National-Park.jpeg 1536w\" sizes=\"(max-width: 768px) 100vw, 768px\" \/><\/figure><\/div>\n\n\n<p>A year ago, Vicky Blades and her two sons left Belfast, Northern Ireland, to join her husband in Madagascar, where he had begun working as a marine conservationist for a British non-governmental organization.&nbsp;<\/p>\n\n\n\n<p>The Blades family was thrilled to get up close to Madagascar\u2019s incredible wildlife, including endangered lemurs, and to learn to scuba dive. However, life on the island off the southeastern coast of Africa comes with certain risks. Madagascar has some of the highest poverty rates in the world, and droughts and political turmoil have led to high unemployment and a spike in crime.&nbsp;<\/p>\n\n\n\n<p>\u201cSecurity is on my mind,\u201d Blades says. \u201cWe were travelling around the Avenue of the Baobabs a few months ago and narrowly missed some bandits who were targeting vehicles by putting trees across the road. When you\u2019re travelling with kids, that kind of thing is terrifying.\u201d&nbsp;&nbsp;<\/p>\n\n\n\n<p>She is somewhat reassured by the heavily armed police who patrol the streets of Madagascar\u2019s capital, Antananarivo, where they live. But before they moved closer to the boys\u2019 school, it was a long journey each day. \u201cMy eldest son used to count the Kalashnikovs on the way to school to keep himself amused,\u201d she says.<\/p>\n\n\n\n<p>As it was the first accompanied posting for the British NGO, Blades\u2019 husband negotiated hard for his family. Even so, the COLA doesn\u2019t cover the children\u2019s school fees, dental or optical care. By comparison, when he worked for a multinational organization in Myanmar between 2011 and 2014, housing and school fees were paid directly.&nbsp;<\/p>\n\n\n\n<p>Blades also worries about access to healthcare in Madagascar, exacerbated during the pandemic. The family arrived just before borders closed, and it remains uncertain as to when they will reopen. Schools were shut for three months, and weekend lockdowns have curtailed the family\u2019s ability to make friends and explore their new home. The language barrier has also made it difficult to settle in, as although her husband speaks French, Vicky and her sons do not.<\/p>\n\n\n\n<p>However, Covid-19 had no bearing on the Blades\u2019 compensation package, which is the case for most expat families living abroad during the pandemic. Since the outbreak, expat hardship allowances in most locations have been largely unaffected, says Kate Fitzpatrick, senior principal and global mobility practice leader UK&amp;I at Mercer.<\/p>\n\n\n\n<p>\u201cThere are a number of reasons for this, including the global nature of the pandemic \u2014 that is to say, that it isn\u2019t affecting just one location or region,\u201d she says. \u201cAnother is the temporary nature of the disruption \u2014 it is not a permanent or indefinite state of affairs, even if it has gone on for longer than many would have wished.\u201d<\/p>\n\n\n\n<p>Right now, says Fitzpatrick, \u201cthe global priority is getting people moving again, and that is being dictated by border closures and vaccination rates.\u201d<\/p>\n\n\n\n<p>Reiche believes it is difficult to predict what the longer-term impact will be. He thinks that much will depend on how well countries manage the process of vaccinations and boosters. Comparing Covid-19 with previous epidemics does not provide clear answers.<\/p>\n\n\n\n<p>\u201cEbola and SARS were temporary and more geographically contained,\u201d he says. \u201cObviously, if someone had moved to work in an area where there had recently been Ebola, a risk allowance would have been negotiated. I would be surprised if the same didn\u2019t occur in places where there&#8217;s very low Covid-19 vaccination rates. The risks are going to vary, and I think there&#8217;ll be much more dynamic and temporary assessments of what it means to be moved to a certain location.\u201d<\/p>\n\n\n\n<p>Although being away from his family was always difficult, Wilson considered the arrangements he was offered in the oil and gas industry a fair deal.<\/p>\n\n\n\n<p>\u201cI always had to have my wits about me; I couldn\u2019t ever really relax. But I always treated it like an adventure. I didn&#8217;t worry that much. And there wasn\u2019t anywhere that I felt so scared that I had to show my \u2018stop work\u2019 card,\u201d he says. That was a literal card with the company president\u2019s stamp that he could pull out when he felt unsafe.&nbsp;<\/p>\n\n\n\n<p>After an extended period of being a stay-at-home dad, Wilson recently began a new role in sales and cybersecurity. \u201cI\u2019m getting paid a heck of a lot more for a lot less travel, and it\u2019s not dangerous,\u201d he says.&nbsp;<\/p>\n\n\n\n<p>But when international travel resumes at some point in the future, Wilson admits he would be tempted to return to doing what he does best \u2014 taking on the risk and reaping the rewards.<\/p>\n\n\n<div class=\"block--author\">      <div class=\"block-author__inner\">\n        <div class=\"author--image\">\n                      <a href=\"https:\/\/rethinkq.adp.com\/author\/jessica-mudditt\/\"><img decoding=\"async\" src=\"https:\/\/rethinkq.adp.com\/wp-content\/uploads\/2021\/10\/profile_Jessica-Mudditt-298x305.jpg\" alt=\"\" \/><\/a>\n                  <\/div>\n        <div class=\"author--info\">\n                      <a href=\"https:\/\/rethinkq.adp.com\/author\/jessica-mudditt\/\" class=\"author--name\">Jessica Mudditt<\/a>\n\n          \n          <p><span style=\"font-weight: 400;\">Jessica Mudditt<\/span><span style=\"font-weight: 400;\"> is the author of <\/span><i><span style=\"font-weight: 400;\">Our Home in Myanmar<\/span><\/i><span style=\"font-weight: 400;\"> and a Sydney-based freelance journalist covering business, technology and lifestyle. Her articles have been published by The Economist Intelligence Unit, BBC, CNN, GQ, Australian Geographic, Marie Claire and Westpac Wire. She is an accredited newspaper journalist and spent seven years reporting from Myanmar and Bangladesh.<\/span><\/p>\n          <div class=\"block--author-social\"><ul class=\"author--socials\"><li><a href=\"https:\/\/jessicamudditt.com\/about\/\" title=\"Author Website\" target=\"_blank\"><i class=\"fas fa-globe\"><\/i><\/a><\/li><\/ul><\/div>\n        <\/div>\n      <\/div>\n       <\/div>\n\n<div class=\"block--recommended-content alignwide is-style-bg-adp-tan\"><div class=\"block-recommended-content__inner\">\n\n<h2 class=\"wp-block-heading\">Read more<\/h2>\n\n\n<div class=\"block--article-pushpoint pushpoint__small\">      <div class=\"block-article-pushpoint__inner\">\n        <a href=\"https:\/\/rethinkq.adp.com\/talking-about-pay-more\/\">\n        <div class=\"pushpoint--image\">\n          <img decoding=\"async\" src=\"https:\/\/rethinkq.adp.com\/wp-content\/uploads\/2022\/12\/iStock-828369152-1084x576.jpg\" alt=\"\" \/>\n        <\/div>\n        <div class=\"pushpoint--info\">\n                    <span class=\"pushpoint--title\">We need to talk about pay more<\/span>\n          <p>Talking about pay is taboo in many places, but it\u2019s also one of the best tools to combat pay inequality. Now, some places are requiring even more pay transparency.<\/p>        <\/div>\n      <\/a><\/div> <\/div>\n\n<div class=\"block--article-pushpoint pushpoint__small\">      <div class=\"block-article-pushpoint__inner\">\n        <a href=\"https:\/\/rethinkq.adp.com\/location-based-pay-hybrid-work\/\">\n        <div class=\"pushpoint--image\">\n          <img decoding=\"async\" src=\"https:\/\/rethinkq.adp.com\/wp-content\/uploads\/2021\/10\/rural_cityroads_compressed-1084x576.jpg\" alt=\"\" \/>\n        <\/div>\n        <div class=\"pushpoint--info\">\n                    <span class=\"pushpoint--title\">In a remote world, should pay be based on location?<\/span>\n          <p>During the pandemic, some workers moved to places with a lower cost of living. Companies are now considering how much location should determine pay.<\/p>        <\/div>\n      <\/a><\/div> <\/div>\n\n<div class=\"block--article-pushpoint pushpoint__small\">      <div class=\"block-article-pushpoint__inner\">\n        <a href=\"https:\/\/rethinkq.adp.com\/unique-job-commercial-diver\/\">\n        <div class=\"pushpoint--image\">\n          <img decoding=\"async\" src=\"https:\/\/rethinkq.adp.com\/wp-content\/uploads\/2023\/05\/06_June-1084x576.jpg\" alt=\"\" \/>\n        <\/div>\n        <div class=\"pushpoint--info\">\n                    <span class=\"pushpoint--title\">A commercial diver navigates the deep<\/span>\n          <p>About 3,700 people in Australia are certified to work as commercial divers, one of the most dangerous jobs in the world. \n<\/p>        <\/div>\n      <\/a><\/div> <\/div>\n<\/div><\/div>\n\n\n<section class=\"wp-block-group alignfull section--sign-up has-background\" style=\"background-color:#7967ae\"><div class=\"wp-block-group__inner-container is-layout-flow wp-block-group-is-layout-flow\">\n<p class=\"has-text-align-center is-style-default has-white-color has-text-color has-large-font-size\"><a href=\"\/sign-up\/\">Sign up<\/a> to keep up to date with ReThink Q.<\/p>\n<\/div><\/section>\n","protected":false},"excerpt":{"rendered":"<p>Some jobs are more dangerous than others, and putting a price on that risk is necessary to entice key talent to take on the challenges.<\/p>\n","protected":false},"author":1,"featured_media":1291,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":true,"footnotes":""},"categories":[116],"tags":[141,140,136],"coauthors":[124],"class_list":["post-1290","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-features","tag-expats","tag-hazard-pay","tag-pay-strategies","issue-issue-3-place"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.5 - 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