Source: Fortune.com
Summary
A study by the Federal Reserve Bank of San Francisco found that employees working from home, at least some of the time, earned 12% higher hourly rates than those working fully in-person. The study analyzed data from nearly 25,000 French employees and found that remote employees with higher-paying positions and greater leverage negotiated better with employers for more flexible work structures. The study suggests that the trend of workplace flexibility is here to stay, with millennials and Gen Z bosses more likely to let employees work from home.
Our Reading
The numbers tell one story. Remote employees are getting paid more, but it’s not because they’re more productive or deserving of higher pay. It’s because they’re already higher-paid and have more leverage to negotiate for flexible work arrangements. The San Francisco Fed study found that nearly half of the 12% pay bump for hybrid workers was due to demographic factors like age, gender, and job seniority. The remaining 6% is likely due to these employees’ existing higher pay and negotiation skills.
Companies are willing to offer flexible work perks to top earners and senior employees to avoid losing them. A Pew Research report found that nearly half of workers would be unlikely to stay at their jobs if they couldn’t work from home sometimes. The trend of workplace flexibility is driven by both employee preferences and companies’ desire to retain top talent.
Author: Evan Null
