The Blubber

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Some companies are responding by offering remote or hybrid work options to attract new hires. However, there’s often a trade-off: flexible work arrangements come with lower pay.

According to Robert Half’s 2025 U.S. Hiring Outlook, nearly half of managers expect difficulties in meeting candidates’ salary expectations. When salary gaps arise, employers are increasingly negotiating remote or hybrid work options as a way to secure talent.

Theresa L. Fesinstine, founder of HR advisory firm peoplepower.ai, told Fortune that many candidates accept 5% to 15% lower salaries in exchange for remote work. “There’s this unspoken exchange rate between flexibility and compensation, and for some candidates, it’s worth a significant tradeoff,” said Fesinstine, who has over 20 years of HR leadership experience. This trade-off is particularly appealing for those prioritizing work-life balance or saving on commuting costs.

The Risks of Lower Pay for Remote Workers

Despite its appeal, offering remote workers lower salaries carries risks. Amy Spurling, founder and CEO of employee benefits platform Compt, predicts that companies trying to cut pay for remote roles will face consequences. “2025 is going to be a ‘find out’ year for companies that thought remote work or other ‘perks’ could replace competitive pay and meaningful employee support,” Spurling told Fortune.

A 2024 PwC report supports this, forecasting a 28% increase in workers planning to change jobs, compared to 19% during the Great Resignation of 2022.

For many workers, lower pay for remote employees represents another form of inequity. Sara Kobilka, a communications and education consultant, called this practice a “dangerous trend.” While she accepted a lower-paying job to leave a toxic workplace, Kobilka argues this should not justify paying remote employees less across the board.

“Yes, people can choose jobs with lower pay to gain the freedom and flexibility of remote work,” Kobilka shared in a LinkedIn post. “But that doesn’t mean employers should unilaterally undervalue remote employees.”