While remote work has largely maintained pay equity with in-office work, it may not offer the same opportunities for career progression.
A recent survey by The Conference Board shows only 3% of Chief Human Resource Officers (CHROs) plan to offer higher salaries to fully in-office workers than their remote or hybrid counterparts. However, a notable 10% of CHROs intend to boost promotion eligibility for employees who work entirely on-site over those who are fully remote.
Hybrid workers are also found to be facing similar career roadblocks. The data reveals 9% of CHROs plan to increase promotion opportunities for on-site staff compared to hybrid workers.
The data is reflective of more stringent return-to-office (RTO) mandates seen issued by large companies, like Dell. The U.S.-based tech company introduced a policy in February, which went into effect last month, requiring employees to designate themselves as either hybrid or remote. If employees choose to remain fully remote, they will not be eligible for a promotion. The hybrid workers, on the other hand, will be eligible if they spend at least three days each week in the office.
The Conference Board also looked at broader retention trends with its CHRO Confidence Index.
The Index — which measures hiring, retention, and engagement — increased to 55 in the second quarter from 54 in the previous quarter. A score over 50 shows there are more positive than negative sentiments among HR leaders.
It also reveals mixed expectations for workforce engagement. While 36% of CHROs anticipate engagement levels to increase, 27% expect a decline. This reflects persistent manager/employer concerns related to maintaining worker engagement within flexible work environments.
Outlooks on employee retention are also shown to be somewhat optimistic. The survey data shows 31% of CHROs foresee improved retention rates within the next six months. However, the retention component of the CHRO Confidence Index showed only a slight increase from 53 to 54, which suggests that challenges remain.
While remote and hybrid models have not impacted salary levels in significant ways, companies should address any limitations these arrangements pose for an employee’s career advancement.
The data also shows that 7% of CHRO’s plan to increase development opportunities for in-office workers over fully remote workers, and 15% plan to increase “high-profile projects for in-office workers over fully remote workers.”
In today’s globally diverse workforce, where it’s common to have team members distributed all over the world, it’s possible these strategies could backfire and lead to higher attrition rates. It will also be important for companies to include equitable promotion practices and professional development opportunities to attract and retain top talent.
