Return to Office vs. WFH: Pay and Promotion Gap in Australia

May 12, 2026

Written by Natasha Hawker
Founder and Managing Director
Natasha is a leading HR expert, entrepreneur, author and sought-after media commentator for outlets such as Sunrise (Channel 7), ABC Radio and The Australian Financial Review. Natasha co-founded Employee Matters in 2011 to help Australian businesses achieve success through their people.

Are employees who work from home falling behind in pay and promotions? New data suggests that might be the case.

A recent report from Robert Half indicates that nearly 70% of Australian companies are adjusting salaries or bonuses based on office attendance. As businesses continue to navigate hybrid work, a clear trend is emerging: being physically present in the workplace may be influencing career progression.

In a recent interview, Natasha Hawker, Managing Director of Employee Matters, shared her insights on what this shift means for employers and employees alike.

Hawker emphasises that for many businesses, performance should remain the priority over presence.

“I’m very happy to pay for performance—I don’t want to pay for presence.”

She notes that employers should ensure they are getting a strong return on investment from employees, with clear performance measurement regardless of location.

Why Some Employers Are Incentivising Office Work

Many organisations are using incentives as part of their Employee Value Proposition (EVP) to encourage office attendance, including:

Higher pay or bonuses
Career progression opportunities
Increased visibility with leadership
Team collaboration benefits

However, these incentives vary depending on business needs and culture.

Flexibility vs Pay: What Employees Value

For some employees, extra financial reward is appealing. For others, flexibility outweighs pay increases.

Key tension points include:

Cost of living pressures vs work-life balance
Career visibility vs remote autonomy
Office collaboration vs flexible work preferences

The Bottom Line

The workplace is shifting, and so are reward systems. While some Australian employers are increasingly rewarding office presence, others continue to prioritise performance and outcomes over location. For both employers and employees, the challenge is finding the right balance between flexibility, fairness, and productivity in the future of work.

Transcript

Host: If you’re planning to work from home today, you might want to reconsider. A new report suggests workers who stay home could be missing out on higher pay and promotions, as businesses increasingly reward staff who show up in person. Recruitment firm Robert Half says nearly 70% of companies have adjusted salaries or bonuses based on office attendance. For more, we welcome Natasha Hawker, Managing Director at Employee Matters. Natasha, good morning to you. So, is working from home really damaging people’s careers and pay packets?

Natasha Hawker: I think in some cases, Michael, it might be—particularly in organisations where it’s really important for employees to attend the office. But in many cases, people don’t want to come into the office. That said, 68% of people are reportedly getting a premium for coming into the office. So it’s very much “bums on seats”, but they need to be office seats.

Host: Indeed, it doesn’t mean you’re not productive if you work from home. But I guess we’re talking about a fairly subjective process when it comes to promotions and rewards. Personality can play a part if you’re front and centre in the office.

Natasha Hawker: I think, as a business owner, Michael—and for most businesses—it’s about performance. I’m very happy to pay for performance; I don’t want to pay for presence. So what we want is people in the office, and we want them to be productive. As a rough rule of thumb, you should be getting a three-fold return on whatever wages you’re paying an individual. So it’s very important that you measure performance and ensure you’re getting a return on investment.

Host: So Natasha, what do you think—should bosses and employers offer incentives or some sort of scheme to get people back into the office, particularly for those they want to promote?

Natasha Hawker: Yes, I think where this comes into effect, Michael, is that as long as you’re meeting the minimum requirements under modern award obligations, this falls into what we call your employee value proposition. So what’s in it for employees to actually come into the office? For some, that might be extra cash given the cost of living. For others, they really want flexibility and will choose that over the extra salary that comes with returning to the office.

Host: All right, Natasha Hawker, thank you very much.