April 11, 2024
Remote Workers Forfeit $22K Annually By Staying Home
According to data compiled by ZipRecruiter, remote workers are facing a significant loss in income, an average of $22,000 per year.
YourTango reports, according to data compiled by ZipRecruiter, that remote workers are facing a significant loss in income, amounting to an average of $22,000 per year. The study compared salary trends between remote and in-office positions, revealing a substantial disparity in earnings.
Julia Pollak, chief economist at ZipRecruiter, provided insight into the driving forces behind these salary discrepancies. “Employers who cannot compete on flexibility will have to compete more aggressively on pay,” stated Pollak to Fortune.
Pollak highlighted the divide between employee preferences for remote work and employer expectations for in-office presence. “The conclusion is that people demand higher pay increases for fully in-office jobs,” Pollak said.
In 2023, the average advertised salary for in-office positions stood at $59,085. Fast forward to 2024, and companies now offer a substantially higher average salary of $82,037 for in-person roles, marking a notable 33% increase. Meanwhile, fully remote workers earn an average of $75,327, showcasing a disparity in compensation compared to their in-office counterparts.
Even workers who opt for a hybrid model, splitting their time between remote and in-person work, experience a notable income gap. The study found that hybrid workers earn an average of $59,992, falling short by approximately $22,000 compared to those in fully in-person roles.
While workers value the flexibility and convenience of remote work, employers often prioritize physical presence in the office, driven by perceptions of productivity and a vested interest in corporate real estate.
A recent survey conducted by FlexJobs in February 2024 highlighted a strong desire for flexible remote work options, dubbed “work-from-anywhere” jobs. According to the remote work firm, 75% of respondents expressed readiness to embrace such opportunities if provided by their employers.
The COVID-19 pandemic has significantly influenced the workforce landscape, with remote work continuing to play a prominent role across various business sectors despite the emergence of return-to-office mandates. Pew Research Center data reveals that approximately 22 million American adults now work from home permanently, with projections suggesting that over 1 in 5 individuals in the United States will be working remotely by 2025.
The FlexJobs report underscores the generational divide in attitudes toward remote work. Sixty-nine percent of millennials, 59% of Gen Xers, and 50% of baby boomers expressed a willingness to forgo certain benefits for the opportunity to work independently. Among the sacrifices mentioned were professional development opportunities, company-provided insurance, and retirement-focused contributions.