One in three Australian employers want to pay remote workers less

The future of work is up for debate as new research reveals that one in three employers plan to pay employees who work from home differently from their office colleagues.

Critics have cautioned employers of discrimination risks, with remote workers often choosing this lifestyle in order to fulfil caregiving responsibilities— many of whom are women taking on unpaid care.

The research, released on Monday, comes out of a Herbert Smith Freehills (HSF) “Future of Work” global survey.

About 38% of senior executives in large Australian corporations told the survey that working from home will become a privilege earned through trust and seniority, with 37% revealing plans to pay remote staff differently to in-office staff in the next three to five years.

Thirteen percent of employers said remote workers will receive less pay and fewer benefits, while unions have argued these workers should be paid more due to the rising cost of heating and electricity. Many have also pointed out that employers save money by downsizing when staff work from home.

This debate comes off the back of former Victorian premier Jeff Kennett’s proposal in July that remote workers should be paid less because they are saving “thousands” of dollars in transport costs by not having a daily commute. The Australian Council of Trade Unions rubbished the proposal, however, with ACTU secretary Sally McManus saying the proposal didn’t take into account the financial pressure Australians face in the current economic climate.

“Whenever there’s an issue affecting workers, it seems the Liberals have one answer, cut people’s pay,” she said in a statement.

“It wouldn’t matter the problem, it’s always the same solution, cut workers’ pay.”

The HSF report said the biggest risk for employers was beginning conflict among staff as remote workers may feel relegated to “second-class status”.

This risk affects employers’ talent strategy considering “workers told they must wait months or years for the right to work from home may not stay long enough to earn the privilege,” said the report.

There are also legal risks for employers around discrimination considering many workers choose this flexibility due to disability or to take on caregiving responsibilities.

Compared to other countries, it seems Australia is pushing back against work from home, with data showing the nation’s employers topped all other regions for staff who work entirely in the office at 18% versus 11% globally.

About 83% of Australian employers expect more in-person work in the next two years, compared with 70% globally. And only 8% of Australian employers expect more hybrid work.

The effects of artificial intelligence on the future of work were also highlighted in the report, with 56% of Australian employers believing AI will significantly affect the size and make-up of their workforce within the next three to five years.

Sixty-five percent of employers are preparing to substantially change their automation strategy, and a third expect job losses to spark employee activism.

This article was first published by Women’s Agenda.