At the same time that many employers are introducing more mandatory days in the office, inflation and rising costs have made workers more conscious than ever of what they spend to get to work. In fact, 36% of employees say they would take a pay cut to work from home.
Study on return to the office and higher employee spending
In this article
Why employee spending is an important issue now
Salaries have not kept pace with employee spending
Establish a successful hybrid strategy to improve employee morale
5 ways to motivate employees to work in the office
Further improving the hybrid model
In this article, we look at how companies can create a successful hybrid strategy that is accepted by employees and how they can motivate their employees (financially and non-financially) to come to work more. We surveyed 2,716 employees from the US, Canada, Brazil, Mexico, UK, France, Italy, Germany, Spain, Australia and Japan to learn more about the costs that employees incur when working on-site or in the office. The article focuses on the responses of all study participants. The full methodology is at the end of the article.
Why employee spending is an important issue now
During the COVID-19 pandemic, many employees have worked from home, often experiencing for the first time what work can be like without bearing all the costs (financial and time) associated with going to the office every day. It is therefore not surprising that many employees want to work permanently in at least a hybrid work environment. 42% say they would prefer to work remotely all the time and 43% prefer a hybrid work model. Only 15% would prefer to work on-site all the time. Among the employees surveyed in Germany, the distribution is almost the same: 45% would prefer to work remotely all the time, 45% in a hybrid model and only 10% on-site all the time.
Survey on returning to the office: preferences in work organization
Nevertheless, many employers have increased the number of days required in the office over the past year. 20% say they currently work more days on-site than they did 12 months ago. Of that 20%, more than half (57%) find having to work more days on-site a negative thing.
With employers asking employees to return to the office more often, workers are now more aware of what they spend getting to work and spending the day there. It can no longer be taken for granted that employees have to bear the full cost of working on-site.
Going into the office is a significant expense that can impact employees' financial situation. Combine that with the belief that they can do their jobs just fine outside of the office and prefer to do so, and companies risk a backlash. The expense of work, who pays it and why is increasingly up for debate. Companies looking to attract and retain talent should not only try to find the perfect hybrid strategy, but also address the expense head-on.
Salaries have not kept pace with employee spending
According to our survey respondents, the cost of eating out and gas, among other things, has increased, making it more expensive to drive to work and eat there. Utilities and groceries are also more expensive, increasing the cost of working from home.
60% of all study participants (regardless of the working model in which they work) say that their labor costs have increased. In contrast, 63% say that their salary increase has not kept pace with their expenses. Among the German employees surveyed, 64% even say that their expenses have increased and 63% also say that salary increases have not kept pace with this.
The costs of employees who work fully or partially on-site have increased more than those who work fully remotely. The largest overall cost increase is for hybrid employees. This could be due to the cost of work equipment, internet, utilities, etc. that are incurred at home, as well as the additional cost of commuting to the office. This makes it even more important for companies to motivate hybrid employees to come to work with financial incentives.
Increased labor costs in various work models
36% of our global survey participants say they would take a pay cut to be able to work remotely. This percentage is even higher at 38% for our German employees. The costs (financial and time) required to commute to work are not the only reason for this, but they are a key factor in this calculation. Employee expenses are the fourth most important reason why employees prefer to work from home, after better work-life balance, time savings and reduced stress.
Companies should therefore work on their return-to-office strategy and offer their employees incentives to increase their motivation to return to the office more often. These incentives should be a mix of financial and non-financial incentives.
Establish a successful hybrid strategy to improve employee morale
We have 3 tips for companies, including examples, on how to set up their return-to-office strategy and communicate it to their employees.
1. Communicate a clear reason for on-site work requirements : Companies that communicated their return-to-office policies with a clear reason for on-site work saw positive impacts on employee engagement, discretion, and retention.
You can create incentives with lectures, on-site training or cross-functional meetings. In this case, you can communicate learning and development opportunities for employees as a reason for attendance.
2. Motivate your employees to return to the office, rather than making it a requirement : Employees are motivated because they want to feel competent, independent and connected. By designing your office space and usage policies to appeal to these feelings, you will motivate your employees to work from the office without having to force them to do so.
Organize a team meeting, an in-office coffee chat, or an out-of-office lunch on the day your team members are scheduled to come into the office. If employees remember the day at the office with positive emotions and a sense of connection, they'll be more likely to come.
3. Involve employees in shaping policies : Employees who are allowed to help shape their team's work organization showed greater commitment and greater discretion.
Instead of choosing the day, have your team vote on which day works best for them to meet for a team meeting. Let them have a say in how the meeting will be structured on that day.
Communication is critical to the success of a hybrid work strategy. Companies should communicate transparently and ensure that all employees are well informed about changes, updates and company goals. Regular meetings, virtual town hall sessions and open communication channels can help with this.
5 ways to motivate employees to work in the office
As we saw in the previous section, the most effective way to encourage employees to come to work is to encourage them to come to work rather than setting strict attendance rules. Below, we'll share five different ways our global survey respondents consider most important to encourage employees to work on-site.
1. Free or subsidized food
76% would prefer to work more on-site if their employer provided them with free or reduced-price meals.
Free meals in the office save employees the time and effort of preparing their own food or looking for a meal outside the office. It also provides an additional incentive to come to the office as it allows employees to reduce their expenses. Eating together in the office promotes social interaction and allows employees to get to know each other better and connect outside of work hours. This can strengthen the feeling of belonging to the team, improve office culture and also increase appreciation from the employer.
2. Flexible working hours
69% say that they would prefer to come to the office more often if they could choose their own working hours.
Introducing flexible working hours allows employees to structure their new zealand telegram data workday around their personal needs. This can help improve work-life balance and increase employee satisfaction. Flexible working hours can also reduce commuting as employees can travel during off-peak hours. This can save stress and time and help employees to enjoy coming to work.
For 64%, reimbursement of parking fees/transportation costs makes it more attractive to get to their place of work.
Companies can improve commuter friendliness by considering proximity to public transport when choosing locations, helping employees organize carpooling, and at least partially reimbursing them for parking fees and/or transport costs.
4. On-site wellness offerings
57% would prefer to work on-site if wellness programs such as a gym or yoga classes were offered.
Companies can introduce programs and initiatives to promote health and well-being in the workplace, such as fitness classes, nutritional advice or mentoring programs to help manage stress. These offers encourage employees to come to the office willingly and voluntarily.