Just how much do Australian workers value working from home?

Would you be willing to sacrifice pay for the opportunity to work remotely or hybrid? A study by the Committee for Economic Development of Australia found that remote workers earn less than office workers. The research revealed that since 2020, those who work from home earned an average of 5.8 per cent less than those who worked from the office. This equates to an average of around $4400 a year.

So, what makes working remotely so appealing?

Why are workers sacrificing pay to work remotely?

Experts say the attractiveness of working from home has played a significant role in this trend.

Employees may be less likely to push for a higher salary if they are offered the benefit of working from home. When presented with two jobs, one with slightly lower pay that allows them to work from home, many people will accept the lower-paying job for the benefit of working from home.

International studies indicate that this is a global trend. They suggest 40% of workers would take a pay cut of 5% if it meant that they could work remotely. Meanwhile, 10% of workers would take a pay cut of 20% if it meant they did not have to return to the office. Studies also suggest that allowing staff to work from helps retain quality staff. Conversely, half of those who work remotely would consider quitting if ordered back into the office full-time.

As employers increasingly force their employees back to the office, positions that allow remote work have become even more attractive. Recruiters report seeing an increase in applications for roles that offer the option of working remotely.

However, many recruiters say that candidates are less likely to hold out for fully remote positions than they were a couple of years ago. This is largely due to a recent pull-back in private-sector hiring. Many candidates now accept that they will have to spend at least two or three days a week in the office

Why do employees value working remotely?

More time with family

Why are employees willing to sacrifice extra pay to work from home? For many, the benefit lies in the extra time they get to spend with their family at home. This is mainly because it eliminates commuting time, especially for those who live far from work.

David Phung, a tech consultant from Melbourne, recently turned down job offers that would have offered him a 10 to 20 per cent pay rise, but forced him to give up his fully-remote role.

“Even at the upper end of 20 per cent – [the pay rise] isn’t really worth the time that you give,” Phung told the Financial Review.

For Phung, one of the main benefits of working remotely is that he can walk his children to school each morning.

Reduced expenses

For some, the lower pay of remote work is offset by reduced expenses. For example, not having to commute can save employees money on fuel and public transport. For some, these savings can be equivalent to an 8% pay rise.

The good news is that many public sector positions offer the opportunity to work from anywhere.

For those who are looking for a new career, Australia’s public service offers endless opportunities.

Are you looking for a new career? Public Service Resumes can help. We are pleased to offer various services including our public sector resume and cover letter writing service.