Employers are Offering Remote Work with Lower Salaries

In many instances, there’s a catch: flexible work but at lower pay… Remote workers are accepting lower salaries in order to achieve remote status. Some are taking as much as 5% to 15% less pay to do so, while other employers are reversing the strategy to entice workers to come to the office at higher salaries.

Today, nearly half of managers anticipate challenges in meeting candidates’ compensation expectations. And when the gap between salary expectation and an offer is too great, many employers are negotiating remote and hybrid work to get candidates to sign on the dotted line, according to Robert Half’s recently published 2025 U.S. Hiring Outlook. Some candidates accept 5% to 15% less pay in exchange for getting to work from home, Theresa L. Fesinstine, founder of human resources advisory peoplepower.ai, told Fortune. “There’s this unspoken exchange rate between flexibility and comp, and for some candidates, it’s worth a significant trade-off,” said Fesinstine, who has more than two decades of leadership experience in HR. This is especially true “for those who value work-life balance or are saving on commute costs.”

There are inherent risks in offering job candidates lower salaries, even if it means getting the chance to work from home. Amy Spurling, founder and CEO of employee benefits reimbursement platform Compt, told Fortune she expects to see a second Great Resignation this year after hiring freezes, benefits cuts, and forced RTO policies in 2023 and 2024. “If you’re trying to lowball remote workers, you’re about to face a harsh reality,” Spurling said. “2025 is going to be a ‘find out’ year for companies that thought they could use remote work or other ‘perks’ to replace competitive compensation and genuine employee support.” To wit, a 2024 report by PwC forecasts another resignation period with a 28% increase in the number of people who plan to change jobs, compared to 19% during the Great Resignation of 2022…

What’s more, Fesinstine argues, remote work “isn’t a perk anymore, but rather a standard operating model.” So attempting to describe remote work as a benefit doesn’t sit well with job candidates…
On the other hand, Michael Steinitz, senior executive director of professional talent solutions at Robert Half, told Fortune their research shows 76% of job candidates are willing to work fully in-office — in exchange for a higher salary.

“Among those employees, the average raise they would request is about 23%, he said.”