Nearly six years after the surge in remote work triggered by the COVID-19 pandemic, a concerning trend has emerged: remote employees are increasingly likely to earn less and face fewer career advancement opportunities than their in-office counterparts. A recent survey by Careerminds reveals a “clear gap” in compensation and promotions, even though remote work remains a significant part of the U.S. workforce.
Why this matters: The shift to remote work was initially seen as a win-win, offering flexibility and cost savings for both employees and employers. However, this data suggests that the long-term consequences may be unevenly distributed, with remote workers potentially falling behind in career progression. This is especially important given that over 13% of U.S. workers were regularly working from home in 2023, a substantial increase from pre-pandemic levels.
Smaller Raises for Remote Workers
Careerminds’ survey shows that remote employees are not only receiving pay raises at the same frequency as in-office staff, but those raises are often smaller. The data breaks down as follows:
- Remote workers: 14.6% received less than a 2% raise, while only 4.5% received a raise of 10% or more.
- In-office workers: 11.5% received less than a 2% raise, and 6.9% received a raise of 10% or more.
This suggests that remote workers are being systematically undervalued in pay adjustments, despite potentially delivering the same level of performance.
Promotions are Less Frequent
Nearly half (48%) of remote workers report being overlooked for promotions, even when their performance merits advancement. This disparity can lead to disengagement and higher turnover among remote employees. Employers may be unconsciously prioritizing in-office visibility when making promotion decisions, leaving remote talent behind.
“Remote employees might deliver a stronger result than in-office counterparts, but if they don’t see pathways for advancement, loyalty and motivation among these employees can erode.” – Careerminds
Limited Access to Skill Development
In-office employees benefit from greater access to skill development programs, workshops, and certifications. These opportunities are often tied to raises and career progression. Remote workers, relying more on virtual learning, may miss out on the networking and informal mentorship that can accelerate their career trajectory. The lack of in-person interaction can hinder their ability to “convert skill-building into compensation gains.”
What can remote workers do? Proactive career management is crucial. The key is to reduce reliance on virtual interactions and actively seek face time with leaders and colleagues. By taking ownership of visibility and networking, remote employees can mitigate the relational deficits that contribute to the pay gap.
The rise of remote work has been a major shift in how we work, but if these trends continue, it may create a two-tiered system where remote workers are systematically disadvantaged. Employers must address these imbalances to ensure fairness and retain talent in the long run.
