Table of Contents
- Why Are Remote Workers Getting Fewer Promotions? The Hidden Costs of Staying Home Full-Time
- Recommendation
- Take-Aways
- Summary
- Remote workers received promotions 31% less often than in-office and hybrid employees.
- Some remote team members are starting to feel disconnected and left behind.
- Studies show no difference in promotion potential between hybrid and full-time workers.
- About the Author
Why Are Remote Workers Getting Fewer Promotions? The Hidden Costs of Staying Home Full-Time
Discover why fully remote employees are 31% less likely to be promoted than in-office peers. Learn how proximity bias affects career advancement, salary growth, and mentorship opportunities according to new workforce data. Read the full analysis below to understand the promotion gap and decide if the trade-off for work-life balance is worth the cost to your career.
New data shows that people who log on from home five days a week get fewer promotions and less mentoring than people in the office
Recommendation
Journalist Te-Ping Chen of The Wall Street Journal reports on studies showing that remote workers are promoted less often than those who work on-site. In some cases, leaders’ preference for in-office workers affects remote employees’ raises and promotions. Even though in-person collaboration, networking, and mentorship help foster career growth, companies still need to ensure growth opportunities for their remote workers. While hybrid workers are promoted much like in-office employees, fully remote workers – despite being more productive – are rewarded and promoted less often. However, Chen reports, many remote workers are willing to sacrifice career advancement to gain a better work-life balance.
Take-Aways
- Remote workers received promotions 31% less often than in-office and hybrid employees.
- Some remote team members are starting to feel disconnected and left behind.
- Studies show no difference in promotion potential between hybrid and full-time workers.
Summary
Remote workers received promotions 31% less often than in-office and hybrid employees.
In the post-COVID workforce, many employees are seeking completely remote jobs. However, Data Technologies research analyzing two million white-collar employees found a downside to working at home: fully remote workers are not being promoted as often as their in-office or hybrid colleagues.
“There’s some proximity bias going on… I literally call it discrimination.” (Nick Bloom, Stanford University economist)
The study showed that 5.6% of in-office or hybrid workers were promoted in 2023, as opposed to only 3.9% of remote workers. Executive and managers are trying to pull their employees back into the office, but – according to the US Census Bureau and the Bureau of Labor Statistics – 20% of college-educated employees continue to work remotely full-time.
In a KPMG online survey of 1,325 CEOs in 11 nations, 90% say they’re likelier to give plum assignments, promotions, and increased pay to those who “make an effort” to come into the office in preference over those who are fully remote. Nearly two-thirds of these CEOs anticipate that most people will return to full-time in-office work by 2026.
Some remote team members are starting to feel disconnected and left behind.
University of Virginia assistant economics professor Emma Harrington reports in a co-written paper that male software engineers who share the same building at a Fortune 500 company received 18% more feedback comments than those who work elsewhere. Female engineers on-site received 40% more comments than those off-site.
“I feel a little lost…I just didn’t realize the impact of not being able to grow as much, being hands-on in the office.” (Erin Villela, remote worker)
Entry-level employees also find that working in the office gives them valuable face time with managers, the kind of contact that seems necessary for career growth. As the white-collar employment situation grows tighter, employers are able to make stricter demands and require nearby employees to come into the office. For example, Egnyte asks employees who live within 50 miles of its facilities to work on-site three days a week and uses badges to keep attendance records; 46% of its workforce of more than 1,000 is office-based. Although CEO Vineet Jain believes those who work remotely show “a lack of connectivity and a lack of ownership,” the corporation’s chief “people officer,” Dean Chabrier, says remote staffers have equal access to advancement opportunities and career development, and that senior leaders make a particular effort to travel to meet with far-flung workers.
Studies show no difference in promotion potential between hybrid and full-time workers.
Stanford University economist Nick Bloom reported in a co-written 2023 National Bureau of Economic Research paper that fully remote workers are actually more productive than their hybrid and in-office colleagues. Though remote staffers may do exemplary work, they miss out on building in-office, interpersonal relationships, from casual chats to mentorships. This networking shortfall can undermine their opportunities for advancement. Thus, Bloom reports, employees with established careers and relationships may be better served by remote work than those who are building careers, though he finds that three days a week in the office suffices to keep workers in that loop.
However, many remote workers are okay with losing out on promotions if that means they can continue to work from home.
“If I can make enough money to pay my bills and have a balanced life for me and my kid, I’m fine doing that.” (Christy Tabors, remote financial services worker)
Ben Wigert, research director for Gallup’s workplace management practice, finds that remote workers demonstrate more overall well-being and suffer less burnout (23%) compared to hybrid (28%) and in-office workers (31%).
About the Author
Te-Ping Chen writes for The Wall Street Journal and has worked for the International Consortium of Investigative Journalists. He is also the author of a book of short stories, Land of Big Numbers.