When remote job opportunities rose during the pandemic, many professionals shifted due to necessity. Eventually, many realized that remote work also offers flexibility and better work-life balance. Now that the pandemic has settled, the need for remote workers has decreased.
Unfortunately, many employees have become more comfortable working at home or in coffee shops. While this may benefit the workforce, it could create instability in others, leading to many companies favoring in-office setups again.
Due to varying reasons, many businesses are pushing for RTO. This is why many leaders encourage employees to return to the office by ensuring that on-site workers earn higher salaries.
Salary Growth for On-Site Work
At the height of the global pandemic in 2020, many industries suffered or had to close. To adapt, some had to offer remote job opportunities, which many employees appreciated. Now, it’s time to return to the office.
Unfortunately, this is not the preferred setup for many employees. Working at home not only became a solution to mitigate the recent pandemic but also became a habit for most, dubbed with the term “new normal.” Despite the RTO mandates, many still seek remote or hybrid work setups.
According to LinkedIn, 46 percent of job applications in the US were submitted for those that offer remote work setups.¹
However, remote jobs only account for 10 percent of the total jobs posted on the website. Similarly, the UK, France, Germany, and India also reduced remote jobs.
In another source, ZipRecruiter and CNBC share how much the average salary has changed for on-site, remote, and hybrid in 2024.²
Here is the data:
| 2023 | 2024 | % Increase | |
|---|---|---|---|
| On-site | 59,085 | 82,037 | 38% |
| Remote | 69,107 | 75,327 | 9% |
| Hybrid | 54,034 | 59,992 | 11% |
Despite the changes in salary and the support for in-office work, many still prefer remote or hybrid work. For employees, returning to the office might be a strategic move to achieve higher pay.
Read more: Creating a Secure Workplace in the Hybrid Age: Data Protection Strategies for RTO and Remote Teams
Why Do Employers Push for RTO?
Employers offer fewer remote jobs for many reasons. The most apparent reasons are collaboration, stability, and culture-building. However, this is just on the surface. Here are the reasons many businesses consider traditional work setups over the new normal:
1. Collaboration and Teamwork
Unlike in-office work, remote jobs offer less collaboration. We’ve seen people do great things remotely, but this may not fully support internal collaboration. Humans are social creatures, and meeting in front of a screen might not always lend to exceptional relationships.
In an office, people can easily ask for assistance with their responsibilities. However, in a remote setup, one would have to check their coworker’s schedule and set an appointment just to discuss simple matters. The ease of collaborating in the office leads to efficiency, time management, productivity, and product quality.
To build better teams, it’s necessary for team members to meet, collaborate, and build rapport with one another. Working remotely can achieve this to some extent, but it won’t yield the same results.
2. Building Relationships
Working in an office is a great way to build lasting relationships, leading to improved performance and creativity. On the other hand, when working at home, people have to juggle multiple tasks or talk to someone over the screen. Often, there are misunderstandings and miscommunications.
Imagine talking to your parents or child over the phone for months. Would you be able to create meaningful connections? The answer is most probably no. This is also crucial for employees, as interacting with one another can help build better relationships. Even simple coffee breaks can lead to stronger bonds. The key is physical interaction and continuous communication, which remote work can’t offer.
3. Confidential Information and Workplace Security
Most company breaches happen due to common employee mistakes. Since workers interact with one another over the internet, valuable and confidential information must travel digitally. Unfortunately, this increases the risk of unintentionally leaking information, risking company safety and client trust.
Working in public networks is seen as a threat to many companies. This is why many businesses require secure networks using VPN or home WiFi. When working in the office, this can be easily mitigated, and company information remains secured in internal networks.
4. Productivity and Efficiency
This is debatable since many employees report higher productivity at home. However, this may not always be the case for most roles that require collaboration and constant communication. In an office, one can work and be easily motivated by team members to work efficiently.
However, if you work at home, distractions and personal errands might get in the way of work. Remote employees often require quiet workspaces, limited distraction, or noise-canceling headphones to keep their attention and focus. On the other hand, when employees work together in an office environment, it can be much easier to focus.
5. Culture-Building and Commitment
A fully remote job can still become sustainable. However, for larger companies, this might be more difficult to maintain. The main difference between onsite and offsite work is how onsite work can foster a better culture and commitment among its team members.
Collaboration, teamwork, and work relationships all contribute to this. A company’s culture is a crucial aspect in the office. It helps motivate employees and helps maintain a healthy and safe environment.
With a well-established culture, companies can be more productive by encouraging everyone to have a unified goal that aligns with the company. This might not be easily achieved if everyone works at home and does not see each other.
Read more: Adapting Leadership Styles for Hybrid Teams: Leading with Empathy and Accountability
Why Do Employers Offer More Pay for In-Office Employees?
Working at home can indeed provide greater flexibility and work-life balance. However, this can have longer negative impacts on businesses, which is why many employers enforce strict RTOs through higher salaries today. The initiative is not simply to attract employees and gain support. It’s also a reasonable and fair offer.
Location and Cost of Living
Salaries have always been affected by location and cost of living. If an employee works remotely in Mississippi, their salary should not equal that of someone living and working in New York. This is mainly affected by the cost of living in these two different states.
While one may argue that compensation should be equal to what an employee can bring to the company, it’s still a fact that paying for employees can be more costly, especially in higher-income states.
Office Expenses
While both remote and in-office arrangements have their respective costs, working in an office can be more costly in the long run. Remote workers usually incur costs through their work equipment and internet connection. However, work equipment is a single investment, and many people purchase their own computers. The Internet is also a basic necessity that most households possess.
On the other hand, food can be more expensive in the business districts. If an employee is unable to prepare food, purchasing food outside the office becomes the only option. Additionally, there are travel expenses to and from the office, purchasing corporate attire for the office, occasional hangouts, and miscellaneous expenses like coffee, parking fees, or childcare expenses.
Productivity and Efficiency
Remote and hybrid workers can still be productive. However, with limited monitoring, decreased collaboration, and increased personal engagements, it becomes difficult to evaluate work-from-home arrangements. Since office setups offer a well-organized workspace and direct oversight, they can easily maintain productivity and quality of work. Hence, onsite workers are offered a higher salary compared to remote workers.
Read more: Breaking Down Commuting Costs: Incentives That Make the Return to Office More Attractive
The Ethical Implications of Salary Gaps Between On-Site and Remote Workers
One may argue that remote work helps companies save money by decreasing office space, overhead, equipment, facility, and maintenance costs. On the other hand, these savings can also be invested in the company’s facilities, making in-office employees more comfortable and engaged in their work.
If we think about it, the idea that in-office jobs can build better relationships, provide more productivity and efficiency, and foster a stronger culture can be two-sided. Ultimately, it boils down to the company’s direction and management. The reality is that there is an increasing consensus for RTO.
The job market is continuously evolving. Soon, companies and employees will come to terms with the best work setup. As for now, you can still opt for remote or hybrid jobs to find the best in both worlds. However, there might be better competition if you work in an office.
Also, many companies are paying higher salaries for on-site than remote work. So, it might be worth considering putting on your office attire again and heading to the office.
Find work with Madison-Davis.
Finding work can be difficult today, especially if you prefer remote work over on-site setups. Regardless of your preferences, Madison-Davis can be your partner in career progression. We specialize in placing people in accounting, finance, tech, legal, and more.
Additionally, you can download our comprehensive 2025 Salary Guide to navigate the evolving workplace landscape, including insights on how RTO policies and AI integration are impacting compensation across industries. This essential resource will help you make strategic career decisions in today’s shifting job market.
If you’re ready, contact us, and we’ll find the most suitable work arrangement that fits your expertise and job preferences.
References
- Liongosari, Caroline and Hood, Rosie. “Global State of Remote and Hybrid Work.” LinkedIn, 12 Jan. 2024, https://economicgraph.linkedin.com/content/dam/me/economicgraph/enus/PDF/global-state-of-remote-and-hybrid-work.pdf
- Smith, Morgan. “Remote workers could earn up to 30% more if they come in to the office 5 days a week, research shows.” CNBC, 27 Mar. 2024, https://www.cnbc.com/2024/03/27/remoteworkers-get-up-to-30percent-pay-increase-for-switching-to-in-office-jobs-says-new-research.html
