Stanford University economist Nicholas Bloom studied remote work for decades. Through a new study, he found out that workers are willing to relinquish as much as 8% of their annual salary if it means their working arrangement can be partly or fully remote.
According to the latest data from the Bureau of Labor Statistics, the median annual salary of a full-time employee is $58,000. That means prospective employees would give up about $4,600 a year.
That’s not a small amount of money, so what´s the logic behind it? Several studies show workers could recoup the loss — and in some cases save even more — by working from home.
There are several financial benefits to remote work. Employees who go to the office tend to spend more money on things like coffee and lunch, business attire and transportation costs.
These minor costs can add up over time. Inflation has only pushed prices higher than they were before the pandemic.
A recent report from Owl Labs found that workers spend about $31 a day more than they would if they were working a hybrid schedule.
The difference could add up to almost $1,000 a month or $12,000 a year.
That´s plenty more than the $4,600 our median earner would relinquish in exchange for a remote arrangement.