Employees accept up to 15% lower salaries due to the flexibility of working from home

In context: In the wake of the Covid-19 pandemic, the world of work has undergone a seismic shift, with remote working becoming a central point of contention between employers and employees. As we head into 2025, a new trend is emerging: Workers are increasingly willing to accept lower wages in exchange for the privilege of working from home, while some companies are reversing this strategy to entice employees to return. to the office.

The desire to work remotely has become so strong that many job seekers are willing to make significant financial contributions. sacrifices. Some candidates are accepting 5% to 15% less pay for the opportunity to work from home, Theresa L. Fesinstine, founder of human resources consultancy peoplepower.ai, told Fortune.

“There’s an unspoken trade-off between flexibility and compensation, and for some candidates, it’s worth making a significant trade-off,” Fesinstine said. This is especially true “for those who value work-life balance or save on travel costs.”

However, this change is not without criticism. Sara Kobilka, a communications and education consultant, warned that paying remote workers less is a “dangerous trend.” While she herself took a lower-paying job to escape a toxic work environment, Kobilka argued that this should not translate into “unilaterally paying remote employees less.”

Employers find themselves in a delicate balancing act. Nearly half of managers anticipate challenges meeting candidate compensation expectations, according to Robert Half’s 2025 US Hiring Outlook report. In response, many are offering remote or hybrid work options as a negotiating tool to close the gap between salary expectations and actual offers.

Michael Steinitz, senior executive director of professional talent solutions at Robert Half, noted that employers who do not offer accommodations for remote work may need to find other ways to incentivize in-office work, such as negotiating additional paid time off.

Interestingly, the same Robert Half research reveals that 76% of job candidates are willing to work entirely in the office in exchange for a higher salary, with the average increase requested being around 23%.

Despite the apparent willingness of some workers to accept lower wages for remote work, experts warn of the potential consequences. Amy Spurling, founder and CEO of employee benefits reimbursement platform Compt, predicted a second big resignation in 2025. She warned that companies trying to “downgrade” remote workers may face a harsh reality as employees seek better opportunities.

This prediction is supported by a 2024 PwC report, which predicts a 28% increase in the number of people planning to change jobs, compared to the 19% of people who changed jobs during the Great Resignation of 2022.

As the debate over remote work and compensation continues, it is clear that both employers and employees are navigating uncharted territory. Fesinstine argued that remote work is “no longer a benefit, but rather a standard operating model.”

The coming years are likely to see continued negotiations and adjustments as companies strive to balance their operational needs with employee preferences.

“Even in a weakening market, candidates maintain high expectations for salary and flexibility,” Steinitz said. “Employers must act quickly with competitive, comprehensive offers and be prepared to negotiate, especially when seeking top-tier talent with specialized skills.”

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