New research into remote work has revealed some interesting findings that many people may want to take note of. Here’s the full report.
The Remote Work Revolution
In the years since 2020, remote working has increased tenfold.
Insights from 2023 Data
According to 2023 data, around 13% of full-time employees work from home, and almost 30% work a hybrid model of both at-home and in-office working.
However, according to data from ZipRecruiter, this shift seems to slowly be coming to an end.
Incentivizing the Return
While many people might not like the idea of returning to the office full-time, ZipRecruiter has found one potential benefit – a $20,000 pay rise.
Competing for Talent
Companies across the board are trying to end fully remote roles and get people back in the office, and to do so, and they are incentivizing staff with huge pay raises.
As Julia Pollak (the chief economist at ZipRecruiter) put it, “Employers who cannot compete on flexibility will have to compete more aggressively on pay.”
Surging In-Office Wages
Wages for in-office roles are surging by over 30% in some cases. Some companies that offered $59,085 in 2023 are now offering upwards of $82,037 – an almost 40% jump in wages.
Motivating the Return
For many employees, this huge jump in wages will be the perfect motivation to return to working five days a week, pre-pandemic style.
Comparing Compensation
If you compare this rise of in-office wages with that of remote and hybrid, it’s clear that companies are pushing hard for people to come back to the office.
ZipRecruiter found that hybrid roles have increased by around $6000, and fully remote roles have increased by around the same amount.
The Perks of In-Office Work
In 2023, remote workers who switched to in-office roles got a 30% pay increase, almost double that of people who left in-office roles to go fully remote.
A Tough Decision for Employees
Employers are compensating workers for giving up the freedom that working from home provides.
Preferences and Trade-offs
For many who dislike working from home, this will be an added bonus.
However, remote workers who prefer their new lifestyles will have a tough decision ahead as they consider whether returning to the office is worth the extra money.
Pay Cuts for Remote Work
Previous studies have shown that people are willing to take pay cuts to work remotely, so whether these incentives are enough remains to be seen.
Employer Policies
More and more companies are pushing for a return to the office in 2024. Polls from Resume Builder indicate that around 90% of companies are going to create policies directly tied to a return to office, while 30% of companies have stated they’ll threaten to fire employees who refuse to come back.
Productivity Paradigm
This push is in part due to companies believing that workers are more productive in the office.
In-Office vs. Remote Performance
Although data surveys indicate that remote working has increased productivity for around 70% of the workforce, many companies believe that the in-office atmosphere and team spirit will mean they work even harder.
The Allure of Remote Work
Despite offices pushing for in-house workers, data from LinkedIn shows that interest in remote work remains strong.
Nearly half (46%) of all job applications are received by remote jobs, despite these roles being less than 10% of total job postings in the U.S.
Hybrid Workforce Dynamics
ZipRecruiter’s data shows that hybrid roles pay less on average than fully remote and fully in-office roles, although experts attest that many fully remote roles are more highly skilled and technical, like software development.
The Middle Ground of Remote Work
As most workers still want flexibility, hybrid roles may become the dominant form of remote working – creating a balance for both companies and employers.
Meeting Employee Needs
According to a recent report from Owl Labs, hybrid employees say the best work benefit that would motivate them to come in more often is having their company pay for commuting expenses.
One approach to fulfilling this demand is by providing employees with increased salaries to help cover commuting costs.
Reducing Employee Turnover
Higher wages may also result in companies lowering employee turnover – which remains high in industries that don’t have opportunities for remote work like manufacturing, hospitality, medical, and transport.
Finding the Right Balance
While returning to the office isn’t for everyone, if you can make it work, you might be able to earn some big money.
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The post Return to the Office and Earn an Extra $20,000 a Year first appeared on From Frugal to Free.
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The content of this article is for informational purposes only and does not constitute or replace professional financial advice.
