Should salaries be increased for employees who stop telecommuting?

Is offering a salary hike to employees who resume working from the office daily a viable option for your company? This practice is gaining popularity in nations such as the United Kingdom.

Despite the widespread adoption of teleworking in many Western companies, some entrepreneurs remain concerned about its impact on productivity. As a solution, an increasing number of companies are offering salary increases to employees who choose to work in the office during the week.

“The salaries of employees who are required to be physically present at the workplace for five or more days a week have seen a significant increase. Employers are obliged to pay more for this,” says the expert.

This is a new factor that job seekers are using to negotiate their work arrangements, and it could soon become a trend in Spain. As a result, business owners will have to decide whether to allow their employees to work remotely a few days a week or require everyone to come into the office daily in exchange for higher salaries.

Employers doubt the productivity of their employees while working from home

The trend of offering higher salaries to employees who return to the office arises from two main concerns:

• firstly, the need to provide incentives in the midst of a talent crisis,
• secondly, the mistaken belief among many employers that their employees are less productive when working from home.

The CEO of Microsoft, Satya Nadella, has described the mistrust of entrepreneurs in their employees as “productivity paranoia.” He believes that bosses still hold the misconception that their employees shirk their work duties while working from home, when in reality, the situation seems to be quite the opposite.

After analyzing data from all Microsoft 365 accounts, Satya Nadella stated that over 80% of people feel highly productive when working remotely. Microsoft 365 is a suite of employment tools used by billions of users worldwide.

Raise salaries or offer more days off, the most common incentives in 2023

In light of this situation, numerous entrepreneurs in 2023 are compelled to provide their employees with expanded social benefits or incentives to meet objectives. The majority of these incentives entail a salary raise or an increase in the number of available days off, as illustrated by these examples.

In essence, the concept of unlimited vacation is straightforward. In addition to the standard vacation time outlined in their contract, employees are permitted to take an unlimited amount of time off as long as they coordinate with their colleagues and meet their work objectives, ensuring that the company’s operations are never disrupted.