A staggering number of n bosses have revealed they are prepared to slash the pay and benefits of staff who choose to work from home.
Some 37 per cent of senior executives revealed plans to differentiate the pay between remote and in-office staff in the next three to five years.
The shock revelation was made in a global survey conducted by law firm Herbert Smith Freehills (HSF) with the findings released on Monday.
Some 38 per cent of bosses said working from home would become a privilege that would have to be earned through trust and seniority.
Another 13 per cent went a step further to say remote workers would not only have their pay slashed, but their benefits cut as well.
Aussies remain resistant to returning to working in the office, but some employers have had enough and may start cutting the pay of people who won’t come back. Pictured: a stock image of a woman working on her laptop
Aussie employers are using ‘a carrot and stick’ approach and one of the ‘soft’ methods they are using to lure staff back is the promise of ‘team lunches’ and ‘team drinks’. Pictured: a file image of people having food and drinks
More than two-thirds of ns worked from home in mid-2021 during the Covid pandemic.
While the amount of work being done from home has fallen since the pandemic officially ended on May 5, a huge 88 per cent of companies say their workforce is still at least partly hybrid.
The HSF report said that bosses are responding by ‘rolling back’ freedoms granted to employees during the pandemic.
Some 500 bosses were interviewed during the survey with 70 per cent saying more work will be done from the office or on-site within the next two years.
Working from home will remain an option, but almost half the employers surveyed – or 47 per cent – expect remote work to ‘become a reward for loyalty’ and trust and even seniority.
Overall 38 per cent said they expect working from home to be seen as ‘a privilege’.
Natalie Gaspar, a partner with Herbert Smith Freehills, said some n companies are currently using a combination of ‘carrot and stick’ approaches to get staff back to offices.
Many use ‘soft encouragement’, such as offers of ‘team lunches’ and ‘team drinks’.
Many companies are telling staff they expect them in the office more often, including on certain days. But they are facing ‘resistance’ to a full return to work.
‘There’s only a handful of organisations mandating a full return to the workplace, and that’s being met with a significant amount of resistance,’ Ms Gaspar said.
The change is already taking place with employers outlining the days they need to be in the office, Sydney university’s September Transport Opinion Survey said.
‘About 42 per cent of employers have stipulated that workers must return to the office a particular number of days during a week.’
Of all working hours done in in September 2023, 21 per cent were work-from-home (WFH) hours, according to Sydney university.
This is down from 27 per cent in March, mainly driven by professionals and sales workers returning to their offices. Managers, technicians, community workers and clerical/admin workers continue to WFH at about the same rates.
Natalie Gaspar (pictured), of Herbert Smith Freehills, said companies trying to insist on a full return to the office are being met with ‘a significant amount of resistance’
On average Victorians worked from home the most (25 per cent), just ahead of NSW (23 per cent).
In all other states and territories the 21 per cent of all work – or less – was done in the office.
The Sydney university research showed the most common days to work from home are Monday, Tuesday and Wednesday.
‘Wednesday, Monday and Tuesday have the highest levels of WFH, with 63 per cent, 61 per cent, and 60 per cent of those who WFH during weekdays working from home on these three days.
‘In contrast, only 52 per cent and 55 per cent of employees WFH work from home on Friday or Thursday during weekdays.’
The Herbert Smith Freehills report suggested ending all work from home arrangements was unlikely, partly because there could be ‘legal risks’.
‘There are also legal risks, especially given that many workers choose to work remotely due to caregiving responsibilities or disability.
‘Employers will need to carefully consider if such policies risk discriminating against those with protected characteristics and ensure they are treated fairly, in the eyes of the workforce as well as the law.’