Read at euronews
A recent survey found that European companies are considering cutting salaries for remote workers as a way to increase production and lower costs. One in five European small and medium-sized enterprises (SMEs) are considering reducing remote worker salaries. However, some companies argue that remote working can help reduce office costs. According to Pleo's COO Thorbjørn Fink, companies will be focused on cost savings during 2024, and approximately 20% of respondents mention reducing remote worker salaries as a way to achieve savings. Fink also suggests that SMEs need to improve their awareness of financial health and make data-driven decisions about other ways to tighten their budgets.
"Our report shows that 1 in 4 respondents see this as a topic for 2024," he added. "But where such savings will come from is uncertain. Some (around 20%) mention reducing remote worker salaries as a way to achieve savings."
The move to slash remote worker salaries could have implications for Europe's labor market, although there is no immediate response from European Commissioner for Jobs and Social Rights Nicolas Schmit regarding the wider implications. Remote positions are being replaced by hybrid openings, and some companies are ordering employees back to the office. It is essential for SMEs to have a precise overview of their spending and make data-driven decisions to navigate these uncertainties.
How would slashing remote worker salaries affect Europe's labour market?