Salary premiums: The golden ticket to getting workers back in the office

With more organisations wanting their workers to return to the office, employers are going to have to play ball with their employees, convincing them that RTO is worth it.

Despite the flirtation with RTO mandates that is growing throughout the working world, remote work options remain a key factor in workers' decision-making process, according to Robert Half. The report showed that more than one-third (39 per cent) of workers prepared to resign from their role or turn down a job offer that does not include flexibility regarding where they work.

As employers attempt to restore pre-pandemic attendance levels, RTO mandates have been the go-to plan for several organisations, despite how disgruntled employees often become when these are deployed. The stats from Robert Half show that this year, 39 per cent of workers are expected to be in the office full-time, compared to just 19 per cent in the previous year.

Despite this expected increase, remote work and flexibility are still a key priority for workers across various industries – directly tying it to their job satisfaction. In fact, 78 per cent of workers stated remote work plays an important role in their overall job satisfaction.

“The future of work is not about returning to the past. It's about finding new and innovative ways to meet the needs of both employers and employees,” said Nicole Gorton, director at Robert Half.

“Flexibility is key to attracting and retaining top talent in the modern workforce. Employers need to be creative and adaptable in their approach to work arrangements. Depending on the industry and business operations, a hybrid model that combines in-office collaboration with remote flexibility can be a win-win solution for both parties.”

When it comes to convincing workers to return to the office on a full-time basis, employers who are willing to pay a salary premium to lure workers back to the office may have some success. According to Robert Half, 44 per cent of workers said they would be willing to RTO full-time if they were offered a salary premium.

In terms of amount, 16 per cent of employees would accept a salary premium of between 11 per cent and 20 per cent, whereas 9 per cent of employees would accept a salary premium of more than 20 per cent.

There are still some no-goers, however, as 15 per cent of workers said they would not be willing to return to the office full-time, even if they were offered a salary premium.

“Many workers believe they deserve a premium for giving up the flexibility and autonomy of remote work due to commuting costs, potential childcare expenses and the loss of personal time which many consider are all factors that contribute to the financial burden of returning to the office full-time.”

“In a cost-driven environment, however, premiums might not always be an option for employers. Instead of offering a salary increase, employers can instead focus on enhancing the office environment, offering career development opportunities and highlighting the benefits of an in-person work arrangement to make the return to the office more appealing.

“Employees have experienced the benefits of remote work firsthand with many reluctant to give them up. To ensure top talent don’t leave an organisation for this reason, companies should aim to strike a balance where workers still feel a level of autonomy and an in-office work environment that sparks enthusiasm, not dismay,” Gorton said.