Depends on the employee, and why they moved.<p>1. If you really value the employee, and might lose them if you don't give them a raise, then give them a raise.<p>2. If the move was to a certain degree out of their hands (moving with a partner, etc), this would make me more likely to give them a raise.<p>3. If they moved of their own accord, then after committing to the move they ask for a raise because of living costs, this would leave a sour taste in my mouth - I don't like being painted into a corner.
I agree with @Artagra but as a businessman/entrepreneur<p>a) always look at your profit margin<p>b) if you are a big company, will you be interested to offer it to other employees as well, as you are setting a precedent<p>c) check for tax implications<p>d) if the employee is irreplaceable, consider converting the engagement to consultant
Should have been discussed and put in writing when the terms of employment changed to remote work - a whole bunch of things change in terms of taxes, liability, etc.<p>If you genuinely value the employee, and genuinely want to keep them, and the increase is not rediculous, then it's a perfectly reasonable request - especially if they only seem to be asking for the same standard of living and not gaming you for more spending cash.
If you don't increase their pay - will they leave?
What about paying for insurance and expenses for remote workers. Laptops, pcs, etc.
It depends -- did she ask for a raise? If she asks for a raise, then it really doesn't matter what the reason is, you just ask yourself do you want to give this person a raise.<p>If she didn't ask for a raise, then a 3rd option might be to give a "moving expense" bonus of some sort right now, and then reevaluate a raise at a later date, or whenever the next review/raise schedule is.
If the value she brings to the company can justify the increase then I would consider it. If it's too much then u could meet her halfway or start looking for new talent.