As more and more companies are starting to eliminate remote jobs, recruitment agencies warn that companies are at risk of losing talent.
Many business leaders have expressed their disdain for working from home. In fact, the CEO of Goldman Sachs, David Solomon, described remote work as an “anomaly”.
Therefore, the idea of paying remote workers less – which is not new – keeps coming back, with employers arguing that remote workers’ lack of commuting and freedom to live wherever they want results in lower costs in relation to those working in the workplace.
The same question was the focus of recent research with a a significant number of European businesses to be in stark contrast to what workers want.
Businesses are watching opportunities to increase production and reduce costsaccording to the survey findings, published by the expense management platform Pleo, and shows that almost one in five European SMEs are considering cutting the wages of employees who work remotely.
As more and more companies, including tech giants around the world, make headlines by ordering their employees back to the office, in a reversal of a trend that many thought was here to stay, Thorbjørn Fink, COO of Pleo, told Euronews Business that companies “will focus on cost savings during 2024”.
“Our report shows that 1 in 4 respondents cite taking a pay cut from home workers as a way to achieve savings, while they see decisions being made within 2024,” he added.
Euronews Business contacted the office of European Commissioner for Employment and Social Rights Nicolas Schmit to ask regarding any wider implications of such a move, but did not immediately receive a response.
How would cutting the wages of remote workers affect the European labor market?
However, there are many who argue that remote workers are just as productive as their office-based colleagues, and even reduce costs for employers, so their work should be equally compensated.
Meanwhile, Dutch multinational HR consultancy Randstad told Euronews Business that it is extremely important that all employees are treated equally, regardless of their location.
“We need to make sure we create a level playing field, where everyone is treated equally, to make the best use of employees’ abilities,” the company said.
Risk of losing talent
As more and more companies begin to eliminate remote jobs, recruitment agencies are warning that companies are at risk of losing talent.
According to LinkedIn’s latest report “Global State of Remote and Hybrid Work” conducted at the end of 2023, 50% of employees prefer flexible, hybrid or remote work.
And they may not compromise, especially since, according to Randstad, younger generations value work-life balance just as highly as the question of pay.
Compromise
However, many employers are turning to hybrid work solutions as a kind of compromise between the flexibility desired by employees and the company’s goal of an office presence.
Meanwhile, remote jobs receive nearly five times as many applications as others, according to LinkedIn.
Source: Nautemporiki
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