As many businesses continue the push to get workers back to the office, a new survey from The Conference Board reveals that making the trek in may help your career.

Some HR leaders plan to move fully on-site workers higher and faster up the corporate ladder. Indeed, 10% of Chief Human Resource Officers (CHROs) expect that promotion eligibility will be increased for fully-in-office workers over fully-remote workers.

What's more, hybrid workers aren't in the clear—they may also face career setbacks: 9% of CHROs plan to increase promotion eligibility for in-office workers compared to hybrid workers.

Despite potential career limitations, there's good news for remote and hybrid employees. The survey reveals that work location won't affect compensation for the job at hand. Few HR leaders plan to offer a higher salary, higher merit increases, or higher compensation targets for on-site workers.

Overall, CHROs' outlook on the state of the workforce continues to improve. The Conference Board CHRO Confidence Index ticked up to 55 in Q2, from 54 last quarter. (A reading of more than 50 points reflects more positive than negative responses.) While hiring and retention expectations continue to climb, the survey reveals that HR leaders are less optimistic about their ability to keep workers engaged. 

"Today's talent pool places a premium on workplace flexibility—and historic labor shortages reinforce the need for such arrangements. Treating hybrid and remote employees equitably when evaluating performance, offering growth opportunities, and making compensation decisions will not only help to engage your workforce, but retain them," said Diana Scott, Leader of The Conference Board US Human Capital Center.

Conducted quarterly, the CHRO Confidence Index was launched in Q1 2023 and is comprised of three components—hiring, retention, and engagement—as well as special questions included in each survey. Nearly 120 CHROs participated in the Q2 survey, which was fielded from April 1 to May 1. Key findings include:

Special Questions: Fully Remote vs. Hybrid vs. Fully In Office 

Hybrid and remote workers will not be financially penalized.

• Only 3% of CHROs plan to offer fully-in-office workers a higher salary than remote workers when they hire them. Similarly, 4% will offer fully-in-office workers a higher salary than hybrid workers.

• 3% plan to offer fully-in-office workers higher merit increases than hybrid and remote workers.

• 3% plan to increase incentive compensation targets for fully-in-office workers compared to remote workers; 2% plan to increase them compared to hybrid workers.

Fully remote workers may miss out on more advancement opportunities than their fully on-site colleagues.

• 10% of CHROs plan to increase promotion eligibility for fully-in-office workers over fully remote workers.

• 15% plan to increase high-profile projects for in-office workers over fully remote workers.

• 7% plan to increase development opportunities for in-office workers over fully remote workers.

But even hybrid workers may be at a disadvantage.

• 9% of CHROs plan to increase promotion eligibility for fully-in-office workers over hybrid workers.

• 11% plan to increase high-profile projects for in-office workers over hybrid workers.

• 13% plan to increase development opportunities for in-office workers over hybrid workers.

Core Questions

Hiring   
The CHRO Confidence Index: Hiring component rose to 59 in Q2, up from 55 in Q1. Hiring expectations are still down slightly YoY from its high of 61 in Q2 2023.

CHROs' workforce expansion plans are looking up in Q2, with those expecting to decrease hiring falling by more than half since 2023:

• 11% expect to decrease their hiring over the next six months—down from 13% last quarter and significantly less than the high of 26% in Q3 2023.

• 41% of CHROs expect to increase their hiring over the next six months—up from 36% in Q1.

Retention  
The CHRO Confidence Index: Retention component ticked up to 54 in Q2 from 53 in Q1. But retention expectations are still slightly lower YoY from a high of 55 in Q2 2023.

Twice as many CHROs expect retention to increase than expect it to decrease:

• 15% of CHROs expect their employee retention levels to decrease over the next six months, down from 19% in Q1.

• 31% of CHROs expect employee retention to improve over the next six months—up slightly from 29% in Q1.

Engagement   
The CHRO Confidence Index: Engagement component dropped slightly to 53 in Q2 from 54 in Q1. Engagement expectations are down significantly YoY from its high of 58 in Q2 2023.

More CHROs expect declines in employee engagement than last quarter. Those expecting increases remained stable:

• 27% expect engagement levels to decrease—up significantly from 20% in Q1. 

• 36% expect engagement levels to increase—ticking up slightly from 35% in Q1.