95% of employers won’t lower pay for workers who continue, or transition to, remote work


A survey by Salary.com found that 95% of employers say they will not lower compensation for employees who continue to, or transition to, working remotely. There had been discussion in the media about some companies that were lowering pay for employees who choose to work remotely on a permanent basis.

Salary.com noted the decision not to lower salaries is important as 83% of employees said they would leave their job if compensated less for working remotely. Salary.com’s survey, which included companies and workers, also found that 94% of employees believe they should be compensated based on their skill set, not location.

A majority of employers, 97%, would also not lower an employee’s compensation for working remotely on a partial basis. For those that would adjust compensation, 21% said they would adjust salary with employee contribution, geographic location and concerns about culture as contributing factors.

“Remote work translates into a more fluid, and potentially volatile, market for how employees move from company to company,” said David Cross, senior compensation consultant for Salary.com. “This double-edged sword not only means that there’s a broader selection of talent from which to hire, but that there is also an increased retention risk to the current workforce.”

However, the survey also found that 34% of employers said they would not hire a person on a fully remote basis in a different geographic market at the same rate as an on-site employee. External competitiveness and cost of living would be taken into account along with differences in geographies when determining pay.

Salary.com’s survey included 743 employer responses and 549 individual worker responses. It took place in May.