September 14, 2021

Pay cut for Work From Home (WFH). Is it worth it?

When it comes to salary, we each seek to receive compensation that is comparable to the amount of experience we have. Often, we aim high, negotiate, and try to achieve our worth. However, in some cases, can less really mean “more”? During the pandemic, millions of employees have strived to work from home, even if it means taking a pay cut. Google recently approved 85% of employee requests to work from home while cutting their yearly salary.

In a survey conducted by the Business Journal, Americans voted that they would take up to a 7% pay cut to WFH, part time. Other studies conducted by Pollfish demonstrated that some employees would shave off up to 25% of their salaries!

Top reasons why employees have taken a pay cut to work from home:

  • Health and SafetyDue to the pandemic, employees may want to have less exposure in the office and throughout their commutes. Working remotely creates a sense of ease for many.
  • Cost Savings when it come to commuting expense. We also save on lunch, and that extra cup of coffee we all tend to need.
  • Tax breaksRemote work may allow us to write off internet, Wi-Fi, and phone services, leading to a better tax return.
  • Work life balanceSaving commuting time allows employees the flexibility to complete personal tasks without diminished productivity.

When considering a pay cut to work remotely, review the dollar amount in cost savings and compare it to the percentage of your pay-cut. Perhaps this can be negotiated to meet both the needs of you and your employer.

Despite the concern that employers had in reference to productivity with WFH, surveys are showing that employees are more productive. According to Flexjobs’ annual survey, 65% of employees were more productive in their home offices that in a traditional workspace. With technology such as Zoom, WebEx, and Google meet, face to face interaction and teamwork are becoming just as prevalent in the virtual world. Employers are also saving money! Does this seem like a win-win situation??

Our stance is that employers should not force existing employees to take a pay cut if they are the main driver for the shift in work dynamic. This blog is aimed at persons considering changing jobs or asking for the shift in their current work dynamic.

Are you willing to take a pay-cut to work from home and can “less actually mean more???

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All the best from the Five Star team!