Bad news for WFH as companies stop promoting remote workers

By Kirstie McDermott

American workers have enjoyed the option of remote working over the past few years, but now, the option to work out of office is eroding.

Numerous companies are taking advantage of the new post-pandemic labor environment, where many workers have lost their jobs and are back in a slimmed-down job market.

Starbucks, General Motors, Disney, Walmart and United Parcel Service are just some firms that have reversed their position on remote working.

A new report has also highlighted that the percentage of jobs paying $100,000 or above that are available in a hybrid capacity fell 40% during the first quarter of 2024, compared to the last quarter of 2023. Now, only 9% of six-figure career opportunities offer remote work.

3 great HR roles to apply for this week
●     Benefits Specialist, Air Line Pilots Association, Int'l., McLean ($75,552 - $107,889)
●     Human Resources Manager, Uline, Columbus ($120,000 - $150,000)
●     Human Resources Information Systems Data Specialist, Eau Claire Area School District, Eau Claire ($78,488 - $96,599)

The data also showed that in-person roles increased about 7% during the period, accounting for 89% of high-paying jobs.

Another trend is emerging too.

An analysis of data from two million workers by employment data provider Live Data Technologies found that remote workers were promoted 31% less frequently than those who worked physically in the office. This included both full-time in-office, and those hybrid workers who come in a couple of days a week.

The data also revealed that in 2023, only 3.9% of remote workers were promoted, compared to 5.6% of in-office workers.

JPMorgan Chase's CEO Jamie Dimon said in 2023 that there are "serious weaknesses" with virtual work, including slowed decision-making and a lack of "spontaneous learning and creativity".

Dell has taken this further, telling employees that if they want to stay fully remote, they won't be eligible to apply for new positions at Dell or receive promotions.

Proximity bias at work
These decisions can be seen to speak to a culture of proximity bias, where bosses tend to favor those who are in the office, and gloss over the achievements of those working remotely––purely because they simply don't see them as often.

Being seen at work tends to result in positive outcomes for employees, and there are more blows to come for those who favor remote work: often women who have additional care-giving responsibilities and those with disabilities, for example.

Another study from Alliance Virtual Offices found that remote workers have worse performance reviews, and don't advance as quickly as their office-working peers. It found that remote workers are 38% less likely to receive bonuses, will work nearly double the overtime of their in-office peers, and that hybrid workers typically earn 23% more than those working fully remote.

So what can be done?

If your company is reversing its position on remote work, then the solution for workers who want to stay working remotely is often to look for a new job.

The first clue will be in job advertisements. Most remote-inclusive companies will shout about it in their job specs, because they know this enables them to hire talent from anywhere in the world, or at least within particular time zones.

This allows you to narrow down companies which are truly happy to enable and support this working model––those that value remote employees often acknowledge their achievements publicly, offer performance-based rewards, and ensure equitable treatment in compensation and benefits.

This sort of inclusivity is evident through a company's investment in remote infrastructure, flexible work policies, inclusive communication practices, and whether training programs and mentorship initiatives are available to all.

The fact remains that things could change again and this time in remote workers' favor. A recent study from Pew Research Center found that many hybrid workers would prefer to spend more time working from home, with 34% saying that if they had the choice, they'd like to work from home all the time.

Pursue your preferred work style now via the Employee Benefit News Job Board