COVID-19 has drastically changed the way businesses and companies operate. Despite COVID restrictions gradually relaxing, many are still choosing to work from home.
The following are some interesting statistics regarding the work-from-home model:
A recent hot topic of debate is whether employees who work from home should get paid less, considering several factors. In this article, we will be going over both sides of the argument. Then, you can decide for yourself whether wages should be lowered for employees who choose the work-from-home model.
Why should work-from-home employees get paid the same?
The main argument on this side would be that because employees are putting in just as much work and effort for the success of a company, they should still get paid the same as employees who choose to work on-site. After all, it is an individual’s choice, and no one is being forced to make either decision.
Regarding this matter, Adam Jackson, CEO of Braintrust, said, “Companies looking to cut pay for employees who change geographic locations when their job can be done just as well remotely as in-person are essentially telling those employees they were overpaid before COVID and this is a ‘fair market adjustment’ of their pay.”
Why should work-from-home employees get paid less?
As we know, the higher the standard and cost of living, the higher the wages; the opposite is true. Many companies determine their remote employees’ salaries based on their living. For instance, large companies such as Google, Facebook, and Twitter have decided to cut the pay of employees who have chosen to relocate and work in less expensive locations. Employees who still live at the same location (don’t change their address) but still choose to work from home are also facing pay cuts because they don’t have to commute to work anymore.
According to Sara Sutton, FlexJobs founder and CEO, “Around 40% of remote workers report personal savings of $5,000 annually on expenses related to working at the office, such as commuting, dry cleaning, and buying lunch. Another 20% said they save up to $10,000 a year.”
The arguments from both sides are continually developing, and many companies are still figuring out how they would approach the situation. What about you - do you think it’s fair to pay work-from-home employees less than their counterparts?