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As many organizations brace for economic hardship in 2023, companies looking to hire are more likely to want new employees to come to the office. But the opportunities for remote work are drying up: one recent LinkedIn study found that although about 50 percent of new job applicants seek remote work, only 14 percent of new postings offer it.¹ LinkedIn data also reveals that employees from some traditionally underrepresented groups have become increasingly interested in remote work in over the past four years, with “a 16 percent and 17 percent increase in the share of Latino and Black candidates, respectively, applying for remote jobs on LinkedIn”—and an even great upswing among Latinas and Black women.² 

The effect of remote work on DEIB efforts Clearly, companies that are willing to keep hiring remote employees will enjoy a massive competitive advantage, particularly when it comes to diversifying their workforces. At the same time, companies that pull back on remote work will see their diversity, equity, inclusion, and belonging (DEIB) strategies negatively affected. Organizations in that second category should expect two main outcomes, as outlined by Julian Lute, a senior strategic advisor at Great Place to Work. 

Fewer diverse candidates will come through the door. The math is simple: if remote work helped an organization bring in new faces and source candidates who weren’t typically attracted to it, reducing remote work will shrink the candidate pool. Also, because meeting diversity targets is more difficult when a business is located in an area that doesn’t reflect the demographic groups it hopes to attract, employers who stay open to remote work will have access to a broader talent pool.

It becomes harder for a company to retain the diversity it already has. Employees who join an organization expecting to work remotely will see a change in remote work policy as a threat to their careers. Even if a company continues to let some people work remotely, those who do so will look around the organization and wonder if they can advance there. If they don’t see opportunities to move up while still working remotely, they might not stay. 

Why diverse candidates want remote jobs

Remote work is one of the most obvious ways an employer can offer workplace flexibility—a key attribute that helps make workplaces more inclusive. By definition, a workplace that is inflexible can serve the needs of only a select few. 

People from traditionally marginalized or underrepresented backgrounds have different needs when entering the workplace and in their lives often must balance choices that are invisible to others. 

As an example, Lute recalls a conversation he had with a Black woman who had been working in an Atlanta office and was relocated to a smaller city in Florida. Both locations were southern cities, but Atlanta has a cosmopolitan population and a breadth of diversity that isn’t always found in other parts of the Southeastern USA. In her new location, her quality of life was negatively affected by workplace politics. “There's a whole thing about people having their behavior policed,” Lute says. “How do you dress? How do you wear your hair? All of those things come into play in people's day-to-day experience.” 

Remote work can reduce exposure to microaggressions or casual racism in the workplace. From the other side of a screen, those interactions become easier to manage. Some employees value that relief, even if it means missing out on deeper connections with colleagues. 

What HR leaders can do

For companies that can’t offer remote work as an option—a growing reality for many organizations—Lute recommends offering other investments in the employee experience in compensation. 

Double down on becoming an inclusive workplace. Remote work isn’t a cheat code for instantly achieving improved diversity and inclusion at an organization; rather, it comes with its own issues in creating a great workplace culture, because employees who work remotely can have a tougher time feeling like they belong. Whether or not remote (or fully remote) work is an option, employees still can treat their people well and give them other benefits that can give them support.  

Find workplace culture ambassadors. Organizations can leverage employee ambassadors who can promote the benefits and positive elements of a workplace (whether it’s onsite or remote). 

Keep entry-level roles open to remote options as much as possible. As companies reduce remote work options, it’s a big mistake to put those limits on roles that bring new people on board. Restricting remote work as someone moves up in the organization is better for DEIB efforts than putting the harshest restrictions on entry-level roles, especially those that are starting points for senior leaders or executives. Companies that don’t carefully consider how eliminating remote work can affect career paths run the risk of having fewer diverse candidates enter the organization—or even none at all. 

Consider expanding other benefits to cover the remote work gap. Remote work is popular for employees who are juggling many different responsibilities, including caregiving for children and elders. Companies that can’t offer remote work should look into expanding child care or elder care services. 

Think about how programs will affect all employees. For HR leaders, getting buy-in on a new initiative to support diversity and inclusion can be tough. Remote work is being phased out for a reason, and asking for new expenditures amid recession fears could be difficult. HR pros should analyze how new programs are likely to help the entire workforce, not just a target demographic. “Once you're helping certain groups that might have been marginalized, more often than not,” Lute points out, “you're actually helping lots of other people.”