12 July 2024
Work from home pay gap emerges post-COVID

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Work from Home Pay: Understanding the Impact on Promotions and Pay Rises

In a recent study conducted post-COVID, researchers have found that individuals who work from home, either entirely or partially, are less likely to receive pay rises and promotions compared to their office-based counterparts. This research sheds light on the implications of the work-from-home (WFH) phenomenon and its effects on career progression. Let’s delve deeper into the key findings and implications of this study.

Key Findings: Pay Rises and Promotions for Remote Workers

The study surveyed 937 UK managers and revealed significant disparities in promotions and pay rises between employees working from home and those working in the office. Managers were found to be 11% less likely to promote staff who worked entirely from home and 7% less likely to promote hybrid workers (those working both in the office and at home). Similarly, remote workers were 9% less likely to receive a pay rise if they worked entirely from home and 7% less likely if they were hybrid workers.

Furthermore, the research highlighted a gender gap in these outcomes. Managers exhibited a 15% lower likelihood of promoting men working entirely from home compared to office-based men, and a 10% lower likelihood of giving them a pay increase. For women, the figures were slightly lower at 7% and 8%, respectively.

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Gender Disparities and Organizational Cultures

The study also uncovered gender disparities in the impact of remote work on promotions and pay rises. Men experienced more significant career penalties compared to women when working from home. In organizations with demanding work cultures, remote male employees faced a 30% lower likelihood of promotion and a 19% lower likelihood of receiving a pay rise compared to their office-based counterparts. The figures for women in such environments were 15% and 19%, respectively.

Conversely, in organizations with supportive work environments and family-friendly policies, no penalties were observed for flexible working arrangements. This suggests that the organizational culture and support systems play a crucial role in mitigating the negative consequences of remote work on career progression.

Implications and Future Directions

The findings of this study raise important considerations for both employees and employers engaging in remote work arrangements. Employees working from home may need to actively advocate for their career advancement and seek opportunities for visibility and recognition within their organizations. Additionally, organizations should evaluate their work cultures and policies to ensure that remote workers are not disadvantaged in terms of promotions and pay rises.

Moving forward, future research could explore strategies to mitigate the career penalties associated with remote work, particularly for male employees. Understanding the factors that contribute to disparities in promotions and pay rises between office-based and remote workers can help organizations create more inclusive and equitable work environments.

While remote work offers flexibility and convenience, it is essential to address the challenges it poses in terms of career progression. By recognizing and addressing the barriers faced by remote workers, organizations can create a more equitable and supportive work environment for all employees, regardless of their work location.

Links to additional Resources:

1. https://www.peoplemanagement.co.uk 2. https://www.cipd.co.uk 3. https://www.acas.org.uk

Related Wikipedia Articles

Topics: Remote work, Gender disparities in the workplace, Work culture and career progression

Remote work
Remote work (also called telecommuting, telework, work from home—or WFH as an initialism, hybrid work, and other terms) is the practice of working from one's home or another space rather than from an office. The practice began on a small scale in the 1970s, when technology was developed that linked...
Read more: Remote work

Gender disparity in computing
Gender disparity in computing concerns the disparity between the number of men in the field of computing in relation to the lack of women in the field. Originally, computing was seen as a female occupation. As the field evolved, so too did the demographics, and the gender gap shifted from...
Read more: Gender disparity in computing

Vocational education
Vocational education is education that prepares people for a skilled craft as an artisan, trade as a tradesperson, or work as a technician. Vocational education can also be seen as that type of education given to an individual to prepare that individual to be gainfully employed or self employed with...
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