Some large employers have recently announced significant layoffs and the question is whether remote workers are more likely to be on the chopping block than those who work in the office. UPS is laying off 12,000 workers, and both PayPal and eBay are cutting about nine percent of their respective workforces. Wayfair also laid off about 13% of its employees, and executives at the online furniture retailer admitted that remote workers were more likely to be laid off.
Although it’s not clear what percentages of remote workers UPS, PayPal, and eBay laid off, if a recent survey is correct, it is likely that the companies laid off more remote than in-office workers. According to a 2023 Live Data Technologies research study of two million white-collar workers, half working remotely and half working in-off, fully remote employees were 35% more likely to be laid off than employees who worked a hybrid schedule or full-time in the office. The fully remote employees were also 31% more likely to be passed over for promotions.
Despite mounting evidence showing how remote work boosts productivity, many organizations are increasingly requiring employees to return to the office or face consequences, including losing their jobs. Employers also are keeping track of which employees are obeying those mandates by looking at badge swipes and location logins. Many CEOs and decision makers continue to believe that an in-person workforce is the most productive and innovative workforce possible.
Aside from personal beliefs that in-person work is simply better, business leaders also are more likely to be aware of the accomplishments of workers whom they see daily. On the other hand, remote workers are less memorable, and business leaders are more likely to forget about their contributions and value to the organization. Likewise, a company often can offshore the job of a fully remote worker for about 20% of the domestic cost.
As a result, remote workers who wish to minimize their risk of layoffs and maximize their ability to move up in a company should be aware of how to measure their productivity and value to the company, as well as how to convey those metrics to management. They also should focus on the characteristics or goals needed to obtain promotions and remain as visible as possible to decision makers.
HBL has experience in all areas of benefits and employment law, offering a comprehensive solution to all your business benefits and HR/employment needs. We help ensure you are in compliance with the complex requirements of ERISA and the IRS code, as well as those laws that impact you and your employees. Together, we reduce your exposure to potential legal or financial penalties. Learn more by calling 470-571-1007.
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