WORKING FROM HOME, COULD THIS IMPACT SALARIES?
With the working landscape changing as we come through the current Covid-19 pandemic, most experts feel there will be an increase in employees working from home.
So, the question is, will this impact salaries?
At present, it is well documented, that jobs in CBD location will normally offer $5-8k higher salary than in suburbs due to extra cost of commute, lunches, clothing , parking, tolls, etc, than those in the suburbs.
So if people are now being offered a work from home role, would salaries be reduced by this amount?
I have been speaking to a few employers and job seekers, and the feedback I have received is that this is acceptable for all parties. The employer can reduce overall payroll costs, and the employee is no worse off on the reduced salary, due to the saving of all business travel related expenses, as well as the exorbitant cost of coffee and sandwiches in most CBD outlets.
It is accepted that existing salaries will not be reduced if people now work from home, but moving forward as new employees are brought on by companies and the role is a work from home, be it part time or full time, will the salary packages be reduced?