Linked – Charting the Value of Remote Work: Would You Take a Pay Cut?

Research by Zoë Cullen and Christopher Stanton puts a value on remote work.

https://www.library.hbs.edu/working-knowledge/charting-remote-works-value-would-you-take-pay-cut

I can understand the thinking here. I’ve worked remotely for years, and my answer to the question is that I would take a slightly lower salary for the option. It only makes sense. It’s less expensive for me to work remotely. I’m not driving every day, paying for parking, eating lunch out, and spending much on clothes to wear to the office.

I suspect that one of the chief complaints among workers forced back to the office after years of successfully working remotely is that the employer is adding a cost to them without any compensation. It’s not the only complaint, but it is an issue.

We understand the value, and we’ve likely done the math. However, that’s not the end of the story. Speaking for myself, there are two things that we also need to talk about.

1. Transparency. – I may be willing to accept slightly less money for the ability to work remotely due to the factors I listed above and the ability to live somewhere with a lower cost of living. We should have an honest conversation about it, though. For example, I may accept that my salary is 5% lower than someone doing the same job in the office when I take the job because that’s the decision I make about the situation. Hiring me in at a salary without any discussion and then hiring someone else at 5% more than I make without disclosure is another story. It’s the lack of transparency that’ll kill the relationship.
2. No matter how we get to the point where I’m being paid 5-10% less, you should understand the risk of paying anyone below market rate. I might agree to take less, but when someone comes along and isn’t paying their remote workers less, that money talks. A ten percent raise is a ten percent raise.

I might negotiate a slightly lower salary to remain a remote worker, but if I can work without needing that negotiation, why wouldn’t I?

So, companies that see this research and consider paying remote workers less might want to keep that in mind. Your top performers might get recruited from under you by companies who value work wherever it gets done.

Act accordingly.

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