Homeworkers are more likely to miss out on pay rises, training and promotions, according to new data published by the Office of National Statistics.
Their figures – which largely relate to home working prior to the Covid pandemic – show those working exclusively from home were paid 6.8 per cent less than those who never worked from home.
The data shows these home workers were less than half as likely to have been promoted between 2012 and 2017 and 38 per cent less likely to have received a bonus from 2013-2020. They were also 40 per cent less likely to have received training.
However, analysis by Hargreaves Lansdown shows that those who have more recently switched to home working, or who balance office work with working from home have fared better. These groups earned 12 per cent more than those who never worked from home and were 35 per cent more likely to have received training.
Recent home workers were 42 per cent more likely to get a bonus than those in the office, and occasional homeworkers were 28 per cent more likely.
Sarah Coles, personal finance analyst, Hargreaves Lansdown: “Working from home means you risk being out of sight and out of mind when it comes to pay rises, training and promotion. Long-term home workers are being overlooked, and end up overworked and underpaid.
“However, not all home workers are equal. While those who have being doing it for years have suffered the consequences, those who have been offered more flexibility recently, and people who still show their face at the office regularly, are actually better off.”
She says these differences reveal some of the forces at play. “People who need to work from home in order to juggle work and caring responsibilities for years, are far more likely to be under-appreciated. Some of this is down to managers doing a poor job of remembering people they don’t see on a regular basis. It may also be because of underlying bias that makes them think they’re not as serious about work. Managers who measure staff by the inputs they can see, rather than by their outputs, vastly underestimate the value of their remote staff.
“By contrast, those who are offered flexibility further into their career, are more likely to have it as a mark of their seniority and expertise. They are being offered homeworking as a benefit in order to retain them, so they’re rewarded accordingly. And those who balance flexibility with showing their face at the office remain front-of-mind too.”
She says this data is important given the huge surge in the number of people working from home as a result of the pandemic. But she points out that it is often not always practical to “pop into the office” on a regular basis, particularly if people, or companies have relocated.
She adds: “These figures have all been controlled for gender, but there are clear implications in the figures for the gender pay gap. Women are far more likely to have to work flexibly for caring responsibilities than men, so run a much bigger risk of falling into the long-term home-working bracket, leaving them overlooked and underpaid.
“Making flexible work fairer is key to closing the gender pay gap, and removing the harsh penalties women pay for needing more flexibility.”
She adds that there was a need to retrain manager to understand the
potential of this vastly overlooked group of employees.
The working day
- Homeworkers work longer hours – 32.3 per week on average compared with 27.7 hours.
- They also work more unpaid hours – with 6 hours of unpaid overtime in 2020 compared to 3.6 hours for those who work elsewhere.
- They start later in the day – in September 2020 at an average of 10.45am, and take more breaks, but they work later into the evening.
- Their sickness absence rate was 0.9 per cent, compared with 2.2 per cent for those who never worked from home.
Meanwhile separate research from Canada Life shows that many people, particularly those who contracted Covid are concerned about returning to an office environment. Only 34 per cent of Covid sufferers are planning to return to the office, compared to 69 per cent of other homeowners who have remained in good health.
Canada Life protection sales director Dan Crook says: “The varied experiences and perspectives of employees must be considered by employers as they develop plans for the return to work later in 2021. There is no blueprint for a successful return and employers should respect the concerns and wishes of their workforce while still focusing on best business outcomes.
“Employers are likely to have three cohorts of employees, one group that cannot wait to return to the office, another that would happily work from home forever and a third that would like a hybrid-model of both. Ultimately, it’s going to be very hard for employers to please everyone. In reality, the return to the office should be a phased approach which is sensitive to the needs of employees. Plans should be flexible as they are likely to evolve over time.”
With the significant majority (70 per cent) of those who plan on returning to the office happy to adapt their working practices, there is an opportunity for employers to trial and develop new ways of working.
When surveyed home workers would like their employers to adopt the following measures to benefit their mental health:
- Mental wellness days (54 per cent)
- Diarised screen breaks (48 per cent)
- Daily mental health check ins (44 per cent)
- Better access to mental health services (42 per cent)
- Flexible working hours (40 per cent)
Crook adds: “We’re still in the early phases of returning to the office and employers will be expected to show an understanding of their employees’ concerns. Those who actively seek to support their employees’ wellbeing will likely enjoy the benefits of a loyal and enthusiastic workforce.
“Employers who provide support services such as mental health counselling, 24/7 online GP appointments and diet and nutrition programmes will ensure employees and their families are well supported and in turn employees will form a positive view and feel better connected to their employer.”
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