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.
What you would forgo:
- American workers are willing to take a pay cut to work remote
- Google employees could face pay cuts due to working remote
- low psychosocial safety is associated with a threefold increase in risk of major depression
What you would gain:
- Not having to commute for five hours is equivalent to a 10 percent raise
- Places that will pay you to move and work remotely
What others gain:
What others lose:
- Organizational support of remote work correlates with reported productivity
- Remote work resulted in a 30% increase in hours worked and 20% decrease in productivity
- inequality of remote work
In aggregate:
- 45% of jobs can be done remotely
- 20% of US workers are expected to work from home permanently
- 84% of moves during the pandemic were within the same metro area
- remote work is not necessarily better for the environment
- Two-thirds of remote workers want to continue to work remotely
- Half of Millennials and Gen Z would consider quitting if employers don’t allow remote work
Links to this note
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Google Employees Could Face Pay Cuts Due to Working Remote
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.