The debate surrounding whether on-site workers should receive higher pay compared to remote workers continues to evolve, with various factors influencing employers’ decisions on compensation structures. Marta Turba, VP of content strategy at WorldatWork, highlights that while some employers may consider offering higher base pay for on-site workers, it’s typically not solely because of their location but rather due to more complex factors.
Turba explains that compensation philosophies often take into account geographical considerations, with adjustments made for workers based on the cost of living in different areas. For instance, a technology company operating in cities with higher living costs might adjust pay for remote workers who move away from these areas. Additionally, some employers may offer stipends to in-office workers to help cover expenses related to commuting, meals, transportation, and caregiving.
While there have been sporadic reports of organizations offering higher pay for in-office work, Turba emphasizes that work contribution, rather than location, is often the primary factor in compensation plans. She suggests that employers should prioritize compensating their workforce fairly and equitably based on their contributions rather than their work arrangements.
Despite perceptions that on-site workers outperform remote workers and are more likely to be promoted, recent data challenges these beliefs. Gartner’s research director Caitlin Duffy notes that over the past few years, data has shown that people can be just as productive, if not more so, in a hybrid work setup. She emphasizes the importance of allowing employees to choose their work setting to unlock their potential and accommodate different work styles.
Similarly, a 2024 Mercer report highlights increased productivity as a primary driver for organizations adopting fully flexible work policies. The report found that a majority of workers reported being more productive when working remotely, further challenging traditional perceptions about on-site work superiority.
