UK employers preparing to slash pay for home workers

[Eldorado]

Employers across the country are preparing to slash pay for home workers as part of radical plans that could ignite a widespread backlash among staff.

One in ten companies plan on reducing pay or benefits for home workers after failing to encourage people back to their desks by using a host of incentives, according to a survey of over 1,000 employers by the Chartered Institute of Personnel and Development (CIPD).

Some 4pc of companies have already reduced pay or benefits for those who continue to work remotely, while 13pc are on the cusp of doing so.

https://www.msn.com/en-gb/money/careersandeducation/employers-across-the-country-are-preparing-to-slash-pay-for-home-workers/ar-AAYOpW2?

[L.A.T.1961]

10 minutes ago, Eldorado said:

Employers across the country are preparing to slash pay for home workers as part of radical plans that could ignite a widespread backlash among staff.

One in ten companies plan on reducing pay or benefits for home workers after failing to encourage people back to their desks by using a host of incentives, according to a survey of over 1,000 employers by the Chartered Institute of Personnel and Development (CIPD).

Some 4pc of companies have already reduced pay or benefits for those who continue to work remotely, while 13pc are on the cusp of doing so.

https://www.msn.com/en-gb/money/careersandeducation/employers-across-the-country-are-preparing-to-slash-pay-for-home-workers/ar-AAYOpW2?

Home workers don't pay travel costs which can be significant. Those not traveling are quid's in. 

Should those who still make the effort to go to work end up with less money in their pocket, after paying travel expenses, at the end of the month? 

Or do business pay those going to work more to compensate for doing something they were already doing before covid. 

Pay adjustment for a change in the employment situation should not be a surprise, even if some might have thought they could get away without.  

[ethereal_scout]

I'm not convinced home workers aren't as productive as office based workers. They can't have everything they need to hand, the odd conversations etc that can't happen. I'm surprised employers have tolerated it for as long as they have.

[L.A.T.1961]

21 minutes ago, ethereal_scout said:

I'm not convinced home workers aren't as productive as office based workers. They can't have everything they need to hand, the odd conversations etc that can't happen. I'm surprised employers have tolerated it for as long as they have.

If working from home was a benefit the profit driven capitalist anti worker businesses  would have twigged to this years ago and switched over.

The fact they haven't is probably a good sign its no better, and probably less productive, than working at work. 

Edited June 25, 2022 by L.A.T.1961

[jmccr8]

When one thinks that the company can be leasing or owning thousands to millions of sq.ft. of space that they have to pay for and have been empty virtually for over a year and a half then it's either reduce space and on contract leases there would be penalties and there may be conditions about subletting to offset costs that could work against them.

[Eldorado]

I reckon it's risky.

Amid a labour shortage and skills shortage, they could lose their best and most experienced staff.

[Tatetopa]

Is pay based on performance or not?    Should people that are childless be paid less because they have no daycare expenses?

Even 5 years ago, it was not possible to do as much remotely as it is today.  Working from home was not viable for most white collar workers a decade ago. For many, it has become as easy as being in an office. 

It is both beneficial and detrimental to society, segments have gains and losses.   Buy fewer work clothes, use less gas, spend more time with family, solve some of the daycare problems and spend the extra time and money in other sectors.

If you are looking at the past, then remember that 50 years ago, one wage earner per family was usually enough. There were no massive day care problems for children.  Families had more input on their children's environment and how they were raised and developed values.

What happens to unfilled jobs and labor shortages  when single parents and low wage earning women drop out of the workforce?

[kartikg]

Old people are running most of the companies and they are out of touch with reality. 

[L.A.T.1961]

3 hours ago, Tatetopa said:

Is pay based on performance or not?    Should people that are childless be paid less because they have no daycare expenses?

 

Its an issue but not really the same thing. 

Staff can choose to work at home on reduced pay or go to work on the same terms. 

Companies are looking at what staff are doing now versus a few years ago. There is no way the change in working will not affect a business in some shape or form.

While child care increases costs to parents its not the direct responsibility of the company how many kids people decide to have. Or how big a mortgage.

That is a personal decision based on their own, for want of a better term, risk analysis. 

[L.A.T.1961]

1 hour ago, kartikg said:

Old people are running most of the companies and they are out of touch with reality. 

I think they are aware of the reality but want some say over the process. Which is reasonable.  

[Tatetopa]

3 hours ago, L.A.T.1961 said:

Its an issue but not really the same thing. 

Staff can choose to work at home on reduced pay or go to work on the same terms. 

Companies are looking at what staff are doing now versus a few years ago. There is no way the change in working will not affect a business in some shape or form.

While child care increases costs to parents its not the direct responsibility of the company how many kids people decide to have. Or how big a mortgage.

That is a personal decision based on their own, for want of a better term, risk analysis. 

If a staff member at home consistently out-preforms a staff member in the office do they exchange salaries?

Of course you are right, it is not the responsibility of a firm how many kids an employee has.  On the other hand, at least in the US, it is the responsibility of a director of a publicly held corporation to maximize profits for investors. If they can fill all positions with capable employees, good on them.  If they have open positions and cannot attract enough employees or find themselves settling for second and third class performers, they might want to examine their policies.   

 

[Silver]

10 hours ago, kartikg said:

Old people are running most of the companies and they are out of touch with reality. 

 

[ThereWeAreThen]

18 hours ago, Eldorado said:

I reckon it's risky.

Amid a labour shortage and skills shortage, they could lose their best and most experienced staff.

Its not a labour shortage but a wage shortage. Alot of companies have been underpaying for years only now are wages going up. Yet their putting prices up even higher as an excuse, its wrong.

[Eldorado]

11 minutes ago, ThereWeAreThen said:

Its not a labour shortage but a wage shortage. Alot of companies have been underpaying for years only now are wages going up. Yet their putting prices up even higher as an excuse, its wrong.

“Our national challenge is that there are over half a million fewer people in the labour force than before the pandemic – solving this participation problem will be essential to get the UK economy growing again. Government and business must work together to support those not currently working to find a way back to the labour market, reform the skills system to equip people for the future and ensure the new immigration system does meet the needs of our economy.”

https://www.onrec.com/news/statistics/number-of-job-adverts-reaches-new-high-for-2022-as-labour-shortages-continue-to-bite

With the end of the Covid restrictions in mid-2021, the number of job vacancies rose at unprecedented rates, and at the same time industries across the UK faced record labour and skills shortages, with many members reporting the tightest labour market they’d ever experienced.

https://www.rec.uk.com/our-view/policy-and-campaigns/labour-shortages/labour-shortages

[L.A.T.1961]

39 minutes ago, ThereWeAreThen said:

Its not a labour shortage but a wage shortage. Alot of companies have been underpaying for years only now are wages going up. Yet their putting prices up even higher as an excuse, its wrong.

When business started to attract staff back after covid with more pay, global inflation came along and started to wipe out any pay gains. 

Increased energy prices feed into almost everything, pushing up prices.

It was said that people did save money during the covid period as they could not go on holiday or shop as easily or need to drive around and use public transport.

Although this is recognised in the US as beneficial to the economy its not included in the talk of a cost squeeze in the UK. But there should be a buffer. Not as it will last long.    

I think changes made by Gov will help. The increase in the tax free personal allowance when paying national insurance contributions does move the poorest employed from paying some tax and should have been done years ago. This and the basic rate of tax personal allowance needs to be moved up every year.

Something that does not always happen.

If less tax is payed at source by staff then there should be less need for big pay rises, reducing inflation pressures.

 

[odas]

On 6/25/2022 at 11:59 AM, L.A.T.1961 said:

Home workers don't pay travel costs which can be significant. Those not traveling are quid's in. 

Should those who still make the effort to go to work end up with less money in their pocket, after paying travel expenses, at the end of the month? 

Or do business pay those going to work more to compensate for doing something they were already doing before covid. 

Pay adjustment for a change in the employment situation should not be a surprise, even if some might have thought they could get away without.  

That sounds like punishing those who try to save some gas money and comute time. Also in many cases work from home stuff need to upgrade their internet conections fir which they are not reimburst because they are not selfemployed. Then you need a printer, paper.... your electricity bills will go up....

There are pros and cons for working from home, but the pay should not be based on that but on performance and productivity.