Commentary: Can employers justify paying workers who return to the office more than those who work from home?

In a commentary, SMU Assistant Professor of Organisational Behaviour and Human Resources Jared Nai discussed the issue of whether employers can justify paying workers who return to the office more than those who work from home. He opined that it is absolutely essential for companies to carefully calibrate the trade-offs if they choose to differentiate compensation and benefits for employees working from home versus those in the office. Asst Prof Nai also urged firms to focus on abiding by the spirit of “psychological contracts” – an implicit agreement employees have regarding the kind of work they agree to perform for the level of compensation provided by the employer, or risk fuelling dissatisfaction and having poorer work outcomes.