Workers Demand Long-Term Remote Work Options

A 20-year high in job vacancies puts focus on competition for talent

As the global workforce quickly approaches year two of remote work, the struggle between managers pushing workers back into the office and workers demanding to stay home is intensifying. This desire for long-term remote work seems to be exacerbating the challenges businesses are having attracting and keeping workers.

Salesforce CEO Marc Benioff recently admitted that the popularity of remote work among rank-and-file had caught corporate chiefs by surprise. Many companies have offered greater flexibility to current and new employees, but HR professionals worry that complicated, unclear, and short-term remote work policies will create retention problems in the future.

Despite companies attempting to pave the way for a return to the office, workers have already made what could be a permanent shift to remote work. PwC surveyed 1,007 full-time and part-time employees and found that 41% of workers want to remain remote. A similar survey conducted by online newsletter theSkimm found that more than 1 in 5 millennial women would turn down a job if an employer didn't allow for remote work in the future.

Location-based salary may no longer be acceptable

A talent shortage and a white-hot job market have given workers the power to demand more from their employers. The pandemic sparked a mass migration out of big, expensive cities and into more affordable areas. At the beginning of the pandemic, employers tried to save money by cutting pay commensurate with market rates in their workers' new homes, but employees are now pushing back.

Some employers offered one-time relocation bonuses to offset a reduction in base salary for workers who wanted to leave expensive cities like San Francisco or New York City. Now, almost two years into the pandemic, remote workers are realizing they are working more hours and producing the same quality of work for less money. This has left many remote workers questioning why their salary is based on their geographic location.

For companies, there are risks in reducing salaries for relocated employees. Not only is pay reduction — for any reason — bad for morale, but the global talent shortage and rise in remote work make it incredibly easy for disgruntled employees to find new work that will pay them more. This point is illustrated by small-town startups that are feeling the pressure from bigger companies that will hire a worker remotely and offer them somewhere between a coastal salary and a local one.

The future of location-based pay scales will come down to a company's ability to hire and retain employees. Many workers won't tolerate location-based salaries, and they won't have to stay for lower pay. Will companies be willing to part with top talent?

Companies and workers negotiate increased benefits

Millions of workers have left their jobs in the "Great Resignation" which has resulted in a 20-year high for job vacancies. Many believe the mass exodus was brought on by employers failing employees during the pandemic, so workers are now going elsewhere to find better options. As the employment market remains unstable, workers and companies are negotiating which benefits are reasonable.

Many employers feel that granting workers the flexibility to work from anywhere is enough, but employees are increasingly seeking more benefits to match their evolving needs. The global competition for talent has empowered workers to bargain for perks that matter to them, like better leave policies, flexible work schedules, and fair pay.

Over the past several years, workers have begun to negotiate for increased benefits, but the pandemic significantly accelerated things. Now, almost two years into the pandemic, workers are especially interested in long-term, flexible work policies. Traditional benefit offerings like paid vacations and sick leave are just starting points.

Working parents are pushing employers for childcare-specific benefits, despite the continued lack of a nationwide parental leave policy. Nearly 40% of companies have increased their childcare-leave options, and 78% of employers have shifted and expanded their telework options since 2019.

Working from anywhere has proven that workers can be physically out of the office and still effectively do their jobs. Workers are now demanding that their company has benefits that help them thrive wherever they're working. As the pandemic continues, employers have little choice but to continue letting their employees work from home and with potentially better benefits.