In August, Reuters revealed that Google employees could see changes in pay if they switched to working from home permanently in a location with lower salary costs. Fellow tech giants Facebook and Twitter also revealed they would cut pay for remote employees who move to less expensive areas.
The news sparked debate across the globe, with insiders questioning the repercussions such a move would have on productivity and equality. For example, more women have care responsibilities than men and are more likely to opt for full-time remote work. If applying Google’s remuneration method, the gender pay gap will widen even further.
From a productivity standpoint, researchers at Columbia University found that employees reduced their output at work by 52% when they discovered their coworkers were paid more. It means that the increased productivity levels organisations saw from their remote workforces over the pandemic could evaporate if some people were forced to take a pay cut.
Are employees asking for a pay cut?
If recent headlines are anything to go by, employees are happy to take a cut to their pay if it means remote working permanently. Research from Hitachi Capital found that over a quarter (27%) of UK office workers are willing to take a salary reduction to continue working from home. The results differ geographically, with four in 10 (40%) London workers prepared to sacrifice pay compared to just one in seven (13%) in the South West of England.
These results aren’t limited to the UK. A recent survey from Goodhire found that 61% of Americans would take a pay cut to retain remote working status, with a staggering 70% saying they would forfeit benefits like health insurance and paid time off to stay at home.
Not an excuse
Such statistics could be music to the ears of some unscrupulous employers who would be more than happy to enforce pay cuts across their organisation. However, the reason employees are so willing to take a salary cut should be examined more closely.
According to Carers UK, there are currently 5 million people in the UK juggling caring responsibilities with work, which equates to 1 in 7 of the workforce. ONS figures state that around 3 in 10 mothers (28.9%) and fathers (30.9%) report facing some obstacle in fulfilling their childcare responsibilities within their work life.
Additionally, some neurodiverse individuals don’t thrive in an office environment, finding it overwhelming, distracting, and impacting productivity. For some, working from home isn’t just a nice-to-have; it’s necessary to fulfil their responsibilities and produce work at a level they can be proud of.
What makes the prospect of pay cuts for remote workers more frustrating is that it’s been proven in multiple studies and surveys over the past 18 months that working from home increases productivity. One of those surveys, conducted by the CIPD in January 2021, revealed that 33% of employers said productivity improved, compared to 28% who saw improvements in June 2020. Another study found that when employees have access to remote-work options, burnout at work decreases by over a quarter (26%).
What’s the answer?
Safe to say, it’s not pay cuts. Some of the most forward-thinking employers are considering how they can accommodate all of their employees’ needs equally. Such thinking has led to a rise in hybrid working options that provide employees with the flexibility to work remotely or in the office, based on their preference, location, and responsibilities outside of work.
At its core, hybrid working gives employees the autonomy to utilise their time more effectively. Of course, policies and processes need to be established to ensure all employees have access to the same advantages, including training and development, opportunities for promotion and mentoring, to name a few, but levelling the playing field for all means employers will reap the benefits of a happier, better rested and less stressed workforce who deserve equal pay.
Looking to make changes in your organisation?
Omni’s Recruitment Effectiveness Assessment (REA) provides HR and recruitment leaders with both a strategic and practical analysis to inform, audit and assess current inclusion resourcing and retention activities. This will then inform the development of next step action plans to help you create a truly inclusive and equal workforce. Complete our five-minute REA to receive your free resourcing effectiveness report today.
