Remote Workers Lose $22,000 Per Year By Staying Home

The work-life balance of employees has greatly benefited from working from home. Because they don’t have to commute, remote workers save money and time. Rather than walking outside for lunch, they can eat in their kitchen and, if necessary, do a load of laundry there. Working remotely offers a general sense of simplicity and mental tranquility.

However, a lot of businesses have implemented return-to-office policies, compelling employees to resume work in an outdated manner that they had previously believed had become obsolete.

Even while working from home provides a great deal of flexibility, staying remote might cost an individual a sizable portion of their income.

According to a research, remote workers lose $22,000 year in salary.

According to data gathered by ZipRecruiter, salaries have changed since 2023 depending on whether an employee works remotely or in an office.

The average in-office pay listed in job advertisements in 2023 was $59,085.One year later, American employers are advertising average salaries of $82,037 for in-person positions—a 33% boost in pay—to individuals who are willing to work in the office.

According to data from 2024, totally remote workers make $75,327 on average.

Some workers prefer to work a hybrid schedule, visiting the office a few days a week, however statistics indicate that this choice also has an adverse effect on their pay: The average salary for a hybrid worker is $59,992, which is roughly $22,000 less than that of an employee with an on-the-ground position.

Employees who switched from working entirely remotely to a full-time office received a wage increase of 29.2%.

Employers are making more money available to employees who work in offices to make up for the lack of freedom that comes with giving up remote work.

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Julia Pollak, chief economist of ZipRecruiter, shared her thoughts on the causes of these extreme wage swings.

According to Pollak, employers who are unable to compete on flexibility will need to compete more fiercely on wages.

Bosses must make the offer more enticing to entice workers back into the office because many would prefer to continue working remotely.

According to Pollak, “the conclusion is that people want higher pay increases for fully in-office jobs.”

Employers still seem to be caught in the archaic belief that employees are more productive when they are physically in an office, while workers have come to value the freedom that comes with working from home.

According to Pollak, there exists a belief among certain companies that employees who work remotely are less productive. She further stated that employers have a strong desire for their staff to remain in the office due to their financial and psychological investment in their corporate real estate.

The difference between what businesses desire and what their employees want appears to be growing. The majority of workers’ desire to stay away from the workplace is understandable, especially in light of how advantageous working from home can be.

One method to allay employees’ resentment about having to report to work every day is to provide a pay raise, although it’s debatable if the extra cash justifies the convenience of working remotely.