In the current landscape of work, the debate over whether on-site workers should be paid more than remote workers has been a topic of discussion. While some employers may consider offering higher pay for those who work in an office, other factors typically take precedence in compensation decisions. According to Marta Turba, VP of content strategy at HR association WorldatWork, compensation philosophies are often based on factors such as geography rather than work location. For example, companies may adjust pay based on the cost of living in different areas or offer stipends for in-office workers to cover expenses related to commuting and caregiving.
Reports of organizations offering higher pay for in-office work have been sporadic, with some instances of pay increases for employees who return to the office. However, Turba emphasizes that work contribution is a more significant factor in compensation plans. Employers are encouraged to compensate their workforce in a fair and equitable manner based on individual performance rather than work structures.
Despite perceptions that on-site workers outperform remote workers, research suggests that productivity can be just as high in a hybrid or remote work setup. A 2021 Gartner survey found that employees can thrive in different environments and settings, unlocking their potential and allowing them to do their best work. Similarly, a 2024 Mercer report highlighted increased productivity as a main driver for organizations adopting fully flexible work policies, with 64% of workers reporting higher productivity when working remotely.
While some may believe that on-site workers have a competitive advantage in terms of bonuses, raises, and promotions, the reality is that individuals excel in different work environments. By embracing flexible work policies and allowing employees to choose their preferred setting, organizations can tap into the diverse talents and workstyles of their workforce. Ultimately, the focus should be on rewarding employees based on their contributions and performance rather than their physical work location.
