A/P Trevor Yu opinion article published in The Straits Time: Can employers pay you less if you insist on remote working?

Many employers adopted flexible work arrangements (FWAs) to continue their operations during the Covid-19 pandemic, However, even as most restrictions lift, this legacy from the Covid-19 pandemic seems likely to persist. Some reasons include employers incorporating FWAs into their employment value proposition and FWAs giving employees the flexibility to meet their needs.

However, such arrangements can create challenges like lower creative output, slower responses leading to lower productivity, and a decline in company culture. Hence, employers that hope to encourage employees to return to work and provide employees with the option of FWAs are in a bind.

A proposal to resolve this is a pay differential whereby in-office employees are paid higher than remote ones. However, its implementation can be difficult. For example, employees may perceive the pay differentials to target employees who need FWAs. Employers can overcome these difficulties by developing a clear policy to communicate to their employees about eligibility, performance management, and compensation for FWAs and in-office employees. Such a policy is critical to develop an inclusive environment for in-office and remote employees.

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