Should workers accept pay cuts in exchange for working remotely?
A recent survey of 600 U.S. adults found 66 percent willing to take a pay cut for the flexibility of working remotely.
To what degree varied, however.
- Fourteen percent would take a one to four percent cut;
- Twenty-nine percent would take a five-to-14 percent cut;
- Seventeen percent would take a 15-to-24 percent cut;
- Seven percent would take a 25 percent or more cut;
- Thirty-four percent would not take a lower salary for flexible remote work.
The survey, taken from July 5 through 7 from Fast, a start-up specializing in online checkout, found COVID-19 safety concerns part of the current appeal of remote working. Thirty-nine percent were less comfortable returning to their physical office compared to 30 days before. However, 65 percent preferred a workplace that gives employees the flexibility to choose where and when they work remotely.
With many Americans now working from their homes, a number of other recent surveys have likewise found a majority of workers open to receiving less pay to be able to work remotely some or all of the time.
According to the latest survey from Dice, the job search site, the benefits of remote work include being more productive, having more flexibility or control of schedule and the time, cost-savings and the environmental benefits of avoiding a commute. A more relaxed workplace, including more comfortable attire, was also cited.
For employers, Global Workplace Analytics has estimated “based on conservative assumptions” that a typical employer can save an average of $11,000 per half-time telecommuter per year. The primary savings are the result of increased productivity, lower real estate costs, reduced absenteeism and turnover and better disaster preparedness.
The concept of “localized compensation” or paying someone less for the same work because of where they live is being hotly debated in human resources circles. In May, Facebook drew some backlash after announcing that employees choosing to permanently work remotely will receive salary cuts if they move to less expensive areas.
A recent survey of tech workers from employment platform Hired found 40 percent supported “cost of living” adjustments while the same percentage were against it.
- Fast Survey Finds 66 percent of Americans Will Take a Pay Cut for Flexibility to Work Remotely – Fast/PRNewswire
- Remote Workers See Productivity, Cost Savings as Top Benefits – Dice
- Latest Work-At-Home/Telecommuting/Mobile Work/Remote Work Statistics – Global Workplace Analytics
- Coronavirus Flash Survey: June 2020 – S&P Global
- Why Remote Work is Good for the Planet and Your Employees – GoTo/LogMeIn
- State of Remote Work 2019 – OWLabs
- New Study: Nearly one-third of workers expect to work remotely full-time after the pandemic – MindEdge/Skye Learning/PRNewswire
- Facebook employees may face pay cut if they move to cheaper areas to work from home – MarketWatch
- 2020 State of Salaries Report: Salary benchmarks and talent preferences – Hired
- Stitch Fix finds California stylists too pricey – RetailWire
- Why localized compensation in a work-anywhere world isn’t so simple – TechCrunch
DISCUSSION QUESTIONS: What are your views on scaling down remote worker pay based on their local cost of living? What complications might companies face should they look to employ local compensation pay structures as they increase the numbers of remote workers?