Employees may feel passed over or 'shuffled down in the overall management chain,' says lawyer
A new report highlights a pressing issue for HR teams in today’s flexible work environment: remote and hybrid employees facing disadvantages in receiving promotions compared to their in-office peers.
According to the Work Remastered 2024 study by United Culture, over a quarter of flexible or remote office workers (27%) feel they’ve been passed over for promotions or career opportunities.
For millennials and older gen Z employees, the numbers are even higher, with 37% of those aged 25-34 and 42% of those aged 35-44 reporting the same.
The problem isn’t only one of employee morale; it’s a serious concern with potential risks for litigation.
As employment lawyer Kyle Lambert of McMillan in Ottawa notes, this type of perceived favouritism could lead to legal complications for organizations, including constructive dismissal claims.
“Employer[s] should be mindful of constructive dismissal risks associated with employees being passed over or feeling as though they are being shuffled down in the overall management chain because they're working from home particularly,” he says.
Lambert cautions that remote workers could interpret reorganization or promotional decisions as intentional bias if they appear to favour in-office employees. In light of this, HR professionals must ensure that remote workers aren’t disadvantaged in advancement opportunities.
“There’s a constructive dismissal risk that comes with taking away responsibilities in the workplace,” he says.
Risks in reorganizations and role reshuffling
When promotions or reorganizations take place, in-office employees may be perceived as favoured, potentially leading remote workers to feel sidelined. This perception risk is particularly high when changes involve shifting supervisory responsibilities or managing teams on-site, Lambert explains.
“If you do any kind of a reorganisation, and those who come out best in the reorganisation are those who are not working from home, employees that are working from home might see that as them having been targeted for doing so,” he says, adding that stripping remote managers of their direct reports, even as an organizational decision, can carry serious implications.
“One of the factors… of alleged constructive dismissal is often a lack of work. An employee will say, ‘I'm having whatever responsibilities taken away from me that used to be mine’ or ‘I'm having direct reports taken away from me.’ That can be a big one in terms of remote, because a company might decide that it wants an employee’s supervisor to be working in-office or not remotely, alongside that employee, and they might say, ‘Well, you're working remotely, that's fine, but we're going to take away your direct reports.’”
The impact of presenteeism bias on retention
According to the Work Remastered 2024 study, a significant portion of employees have seen their flexibility reduced in the last year, with 25% experiencing fewer options to adjust working hours. The figure rises to 44% among younger workers.
The study also revealed that many workers highly value flexibility, with 57% indicating they would consider leaving if their employer reduced remote work options. This retention risk is especially significant among employees aged 30-45, a demographic often balancing family obligations with career growth.
Lambert notes that this group, while committed to advancement, may view limited remote options as a career roadblock.
“We’re not talking about individuals who simply want to work remotely, and aren't necessarily looking to climb the proverbial ladder, but those who are looking to grow within your organization,” he says.
“If doing so means missing out on opportunities, missing out on pitches, missing out on potential promotional opportunities, missing out on important meetings with senior management, whatever it may be, then there's a corresponding risk that people motivated by the ability to work remotely will look elsewhere.”
Supporting disability accommodations in remote work
For some employees, working remotely may be a matter of necessity due to disability-related accommodations. Lambert advises that organizations take special care to ensure these employees are not inadvertently disadvantaged in promotions or assignments, as this could lead to discrimination claims.
“If there’s an understanding that an individual will be able to work remotely for reasons related to disability, then employers will need to be extra cautious in ensuring that that individual’s accommodation is not taken or held against them, whether in purpose or in practice, when it comes to things like workplace opportunities,” he says.
“There is the risk that that the fact that they are being accommodated via remote work because of a disability, if that becomes seen as a bar to advancement or a bar to some other workplace opportunity, then there is discrimination, whether it's intended or not.”
Strategies to counter presenteeism bias
Transparent policies on remote work and career growth can prevent unintentional biases and clarify that promotion opportunities depend on performance, not presence.
“It comes down to a cultural shift within each organisation. People who work flexibly must be treated the same and given the same development opportunities as those who show up to the office,” says Mavis Boniface, global operations director of United Culture.
“If leaders reward presenteeism over productivity, their businesses are in colossal trouble.”
Lambert adds that HR should be well-versed in their organization’s policies on remote work to ensure fair evaluations.
“Employers need to be aware of their own policies, and if they're considering an employee's performance, whether it be for the purpose of promotion or for the purpose of performance management … if they have a policy, or if they have a contract in place that allows the employee to work remotely, then they can't hold it against the individual.”
