Do Workers Get Lower Salaries If They Work From Home

Do Work From Home Jobs Pay Less?

Millions of people have experienced working remotely during the pandemic, proving that remote workers can be as effective and productive as office workers. Having experienced remote work, you might be considering working fully remote for your current employer, are being asked to do so by your employer, or you may be searching for new work from home jobs. These situations once again raise pay concerns and the ugly question of whether work from home jobs pay less?

In this article, we will highlight what is happening to work from home pay in major companies and what is happening to the average salary of remote workers.

What the media says about remote work

The Latest News On Google And Silicon Valley Employers Paying A Lower Salary To Employees Who Work Remotely

Reuters and the BBC have recently reported on companies that have cut pay for remote employees. Across Silicon Valley, companies like Facebook and Twitter have issued pay cuts for remote workers who move out of major cities and set up home in less expensive areas. Reddit has also followed suit, opting for a location-based pay model.

Google employees have also found changes in their pay if they decide to work from home permanently, with their salary determined by geography. Those who have the longest commute are being hit hardest, as the cost of living is less for those in a location further away from the city.

One Google employee said they would have to endure a 10% pay cut if they decided to move to remote work permanently.

However, these information technology-focused companies will pay the same salaries to people who do the same job from home each week if their home is located in the same city as the office.

The broader picture for remote workers

Salary Data On Employees Who Work From Home Each Week

While the leading companies mentioned above may introduce a pay reduction for those who choose to work remotely, research shows that on average, remote workers earn more than their office-working counterparts. Furthermore, employees who are working from home have a higher rate of job satisfaction.

The evidence shows that the typical full time employee gets more accomplished when working remotely, which goes a long way towards justifying being paid more money, not less.

Remote workers have better Job satisfaction

Data On WFH Job Satisfaction And Working From The Location You Are Living

We have already stated that fully remote workers are more satisfied with their job than those who work in the company office. Six out of every ten employees who say they feel dissatisfied with their job are office workers. And, seven out of ten employees who say they hate their job work in the office full-time.

However, working from home 100% of the time does not mean having the greatest job satisfaction. Employees who work on a hybrid basis, working in the office occasionally, have the highest job satisfaction.

We can all appreciate that working from home has benefits, from improved home life to not having to contend with an hours-long commute. And, how about having increased flexibility in when work hours take place within the day? Yet, not everyone will be happy with fully remote work. Many employees feel a need for some office socialisation and face-to-face support from co-workers and the management team.

Remote employees don’t earn less

Average Compensation For A WFH Person

We can dispel the myth that remote workers earn less than office employees. Employees that are fully remote earn on average 2% more then employees who are fully office-based. However, employers are paying the highest wages and overall compensation to employees who work remotely most of the time, some of the time, or as needed.

Just as with job satisfaction, compensation is best for the hybrid employee.

If you are taking less money for work from home, we recommend reading our article: Earn More Working At Home.

How industry and job titles affect work from home pay

Talent Acquisition And Compensation For Non-City Workers

While on average remote work employees earn more than office employees, not all remote work pays more. Some industries and job titles tend to see remote workers taking a pay cut compared to those working on-site.

Those who worked remotely in jobs in transportation, construction, healthcare, and warehousing were paid a lower wage than those who frequented the workplace.

At the other end of the scale, the research shows that pay is significantly more for employees who work remotely in information technology or in the nonprofit sector.

However, the trend does not always hold true for managers and above, with the data suggesting a business would expect a manager to visit the company office as a matter of course.

Suppose you are a manager or senior-level executive searching for remote work opportunities that pay better than company-located roles. In that case, advertising and marketing are two exceptions where salary and compensation are higher.

Find work from home opportunities here.

Remote worker FAQs

FAQs For People Who Want To Work From Home Each Week

Next, we take a look at your questions on wages and working from home.

Should I take a pay cut to work remotely?

It is not always a bad idea to accept a pay cut if the remote work opportunity is right for you. Your circumstances are unique, and there are cost savings that may offset pay cuts.

If you are moving to an outer-city location, your cost of living may be less. The value of properties may also be less, resulting in lower rent or mortgage payments.

However, you may save paying for a business suit by working from where your are living, but see your utility bills increase. On a similar note, you will need to purchase a home-office desk, chair, computer, telephone, and stationery.

Before deciding to work remotely and accept a pay cut, it would be a good idea to note down the costs of attending the office and the costs of working from your home location.

You can then make an informed decision while also weighing up other advantages and disadvantages, such as improved work-life balance, time saved commuting to the city and working with distractions such as your children, spouse, or elderly relatives.

Should you be paid less if you work from home?

The research and data suggests that in most cases, you can earn higher wages and compensation if you work from home. A responsible employee who works remotely often gets more done, so employers have a good reason to offer remote working opportunities.

Employers who switch to a remote workforce can also reduce their location and site costs and office overheads.

Can my employer cut my pay if I work from home?

We cannot provide legal advice on whether a person can be forced to accept a lower salary by their employers. If you feel your are being forced into accepting a lower salary, we recommend getting impartial advice on workplace rights through Acas.org.uk.

Start your work from home career

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About the Author: Jonathan Rawlins

Jonathan's insights reveal the undeniable impact of salary inclusions in job adverts on their efficacy. Noting the rarity of salary details in certain job types, he is resolute in providing candidates with market benchmarks. This determines their worth and offers a solid foundation during salary negotiations.



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