As many companies increase their efforts to bring employees back to the office, one persistent obstacle stands in the way: inflation.
According to Capterra’s 2024 Cost of Work Survey, which polled 2,716 employees globally, 60% of respondents reported that their personal financial costs associated with work have increased in the past 12 months.
The survey found that the rising costs of essentials such as groceries, gasoline, and childcare have decreased employees’ enthusiasm for returning to the office.
It’s reported that hybrid employees, who split their time between remote and on-site work, have been particularly affected — with 64% experiencing higher costs compared to 60% of fully on-site employees and 45% of fully remote workers.
Despite employers’ efforts to raise wages post-COVID, 75% of workers who have seen their costs increase say their salaries have not kept pace.
This “cost-of-work crisis” has led to growing resistance to return-to-office mandates. The data reveals that 59% of employees are considering looking for a new job if they had to spend more than they felt was reasonable to go to work.
According to Capterra’s report, “When working on-site, most employees feel their employer should completely pay for parking (72%), uniforms (67%), toll roads (51%), and public transportation (50%). 68% also feel their employer should at least share the cost of gasoline and food.”
To address this issue, experts suggest that employers should consider sharing some of these costs with their employees.
According to a report published by HRD, potential solutions include:
- Providing stipends for expenses like parking, uniforms, and public transportation.
- Implementing flexible work policies and on-site events to reduce costs,
- Offering financial wellness programs to help employees budget better and adjusting compensation for hybrid and remote workers.
Companies that proactively address the financial burdens faced by their employees will likely be better positioned to attract and retain talent in an increasingly competitive labor market.
