Yahoo Finance Worker's $12,000 blow as cost-of-living crisis makes boss' demand to return to work unaffordable
Working from home may soon be coming to an end, and it'll likely make us all worse-off financially.
More than half of Australian workers struggling with the cost-of-living crisis would find returning to the office full time unaffordable, with one Victorian revealing it could cost them up to $12,000 a year.
Many Australians are embracing a hybrid working arrangement, but workplace experts have claimed more businesses will call on their staff to return to the office instead of splitting their time between remote work and on-site collaboration. However, new research from IWG has found Aussies not only don’t want give up working from home, with 61 per cent saying they simply can't afford it.
In Sydney, a daily public transport fare will set you back $17.80. In Melbourne, a full fare costs $10.60. Meanwhile, experts warn fuel prices could reach $3 per litre in 2024, and the AAA recently reported that Sydneysiders spent $81 per week on tolls, while Melburnians and Brisbanites spend around $57-58 per week.
In Sydney, a daily public transport fare will set you back $17.80. In Melbourne, a full fare costs $10.60. Meanwhile, experts warn fuel prices could reach $3 per litre in 2024, and the AAA recently reported that Sydneysiders spent $81 per week on tolls, while Melburnians and Brisbanites spend around $57-58 per week.
As rents increase, mortgage repayments skyrocket and the price of ... everything just keeps soaring, it’s no wonder the additional expense of commuting is a threat to household budgets.
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But the cost of going to work stretches beyond the raw transport costs when you consider the fringe expenses that come with modern office culture.
Lisa, 34, from New South Wales estimates she could spend more than $30 on a day in the office simply by partaking in office socialising.
“It’s $10.33 just to get there and back,” she said. “An average lunch in the city, even when trying to be cheap, still [costs] you anywhere between $13 and $18. If I factor in a hot beverage to catch up and be social with my colleagues, that’s another $5.”
Whitney, 28, from Victoria finds herself forced to choose between a lengthy commute on public transport for $11, plus petrol to and from the station, or save time by driving but cop $23 in parking fees. The temptation to buy lunch, snacks and coffee means she has to “limit [myself] throughout the day to save, otherwise, it becomes a $50+ day”.
That $50 a day quickly adds up, and over a year (minus annual leave weeks), equates to $12,000 out of your salary.
Of course, many would refute these costs by suggesting workers just quit buying lunch and coffee. But, even then, prepping sustenance for office consumption requires more planning, organisation, and time, further eating into workers’ leisure time outside of business hours.
The fact 74 per cent of Australian hybrid workers surveyed agreed they could save more money by hybrid working suggested having some days spent working from home created an environment more conducive to healthy money habits.
Women (literally) wear the cost of personal presentation when returning to the office
Outside of getting to work and feeding yourself while you’re there, there’s also the factor of clothing and personal presentation to consider – especially for women.
Whitney said: “I don’t wear makeup on Zoom but somehow feel like I must wear it in person.”
Work environments that command an elevated dress code add to an employee's expenses, as well as adding to the time it takes to get ready for the day. Spending an extra 30 minutes getting ready, on top of a 45-60-minute commute each way can easily add two to three unpaid hours to an employee’s day, impacting overall well-being.
Hybrid working benefits both employers and employees
Despite several studies and anecdotal feedback from employees presenting a robust case for the benefits of maintaining hybrid working arrangements, there are still employers hoping to get staff back in the office full time. But hybridity has the power to benefit employers as well as employees.
Damien Sheehan, country head for IWG Australia, said: “The hybrid model allows employers to reduce costs by allowing them to move away from traditional long-term leases or reduce the size of their owned HQs to shift towards flex-spaces or a network of satellite offices, which offer a lower-cost base.
“Previous IWG research revealed that 81 per cent of CFOs say hybrid is a significant cost-saver,” he said.
Victoria Devine, founder of finance media company She’s On The Money, has saved more than $100,000 in office space by embracing hybrid working. But she gives her staff members alternatives to working at home if they do want to work elsewhere, including a company card that allows them to work from a local café over coffee or breakfast.
“I don’t think them wanting to get out of the house should be at their cost,” Devine said. “[The team’s] commitment is up, and they’re more productive, too.”
IWG’s report found 72 per cent of Australian hybrid workers surveyed agreed they felt more productive when hybrid working, while several studies showed working remotely could increase efficiency.
Sheehan echoes the sentiment, concluding that, “[embracing a hybrid model] enables business leaders to prioritise their employees by giving them greater control over their schedules and work-life balance, ultimately resulting in more engaged and productive teams”.
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