In a recent article in Business Insider, a leaked pay calculator and interviews found that some employees face pay cuts if they continue to work remotely. In one example, an employee based in Stamford, CT would face a 15% pay cut unless they worked from the NYC office (1 hour commute). Former San Francisco employees could face as much as a 25% pay cut.
See also:
- American workers are willing to take a pay cut to work remote
- Not having to commute for five hours is equivalent to a 10 percent raise
- Meanwhile, some cities are paying to relocate remote workers to them
- what is the market value of working remote?
Links to this note
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§ What Is the Market Value of Working Remote?
We can come up with a valuation of remote work by looking at a few signals: what you would forgo, what do you gain, what others gain, and what others lose.
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Remote Work Can Reduce Inflation
Remote work can save employers and estimated $200B per year and help reduce inflation. Workers are willing to accept smaller pay for increased work from home options. A recent paper found that this would reduce wage growth by 2 percentage points over two years.