© 2020 Global News, a division of Corus Entertainment Inc. 44% Would Take 10% Pay Cut To Work From Home Forever. Your new salary, though reduced, may … Almost as many, if forced into that option, would seek a new job. These days, a growing number of companies are adopting work-from-home policies to grant workers more flexibility. Read more:

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In fact, a recent study concluded that many workers would be willing to take a pay cut for the opportunity to work from a home-based office. In addition, I've led technical teams, built social sites and mobile apps, and consulted on mobile, social, and IoT. Work at home for half the time and you could save as much as $6,800 a year. This article was originally published by The Motley Fool. And because productivity might go down (although many have higher productivity in their home offices) and you're competing with potentially cheaper global talent?

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Ofosu recalled clients with disabilities who struggled to reach a work-from-home arrangement with their employer. Result of a Twitter poll on working from home. I've been a journalist, analyst, and corporate executive, and have chronicled the rise of the mobile. Also today, Facebook CEO Mark Zuckerberg said that Facebook would be the “most forward-leaning company on remote work at our scale.”. And if you’re in the habit of blowing $10 a day on store-bought sandwiches, there are additional savings right there. It’s not a scientific poll and not generalizable to everyone, but it does provide a decent cross-section of white-collar and no-collar knowledge workers, especially in the tech industry. In 2014, I was named to Folio's top 100 of the media industry's "most innovative entrepreneurs and market shaker-uppers.” I live in Vancouver, Canada with my family, where I coach baseball and hockey, though not at the same time. Productivity Most People Would Take a Pay Cut to Work at Home.

And the shift to working from home is already normalizing the collective perception of workers with disabilities for whom working in the office is not an option, she adds. But if your employer is compelling you to make that choice, you’ll need to weigh the income hit against the added perks. That’s incredibly interesting, and may say something about the percentage of introverts and extroverts in the world as well as where people prefer to work. Your adjusted salary may be lower, but what’s your actual take-home pay? In some public sector roles, like provincially-appointed judges, pay is influenced by geographical considerations, he says. “Now that everybody’s at home, there’s really no distinction,” she says. Ideally, you won’t land in a scenario where you’re forced to choose between keeping your salary or getting more flexibility by working from home. But monetary savings aside, there are benefits to being able to work remotely, like the time savings you’ll reap by not having to travel to and from an office. Check out our Talent Solutions Blog. In a 2018 dispute over pay equality, for example, the Canadian Union of Postal Workers argued that regional pay differences at Canada Post had resulted in rural carriers — most of whom are women — being substantially underpaid compared to their majority-male urban co-workers.

Facebook is working from home. Will coronavirus kill the traditional office as we know it. “Is my personal information going to be used against me to determine my salary?”. Interestingly, however, not everyone agrees.

John Koetsier Senior Contributor. “There’s a lot of outsourcing that’s already going on,” she says. Can your employer really cut your pay for working from home? “I think this is just going to make that stronger.”. © 2020 Forbes Media LLC. I built the VB Insight research team at VentureBeat and managed teams creating software for partners like Intel and Disney. Is it substantial? Taking that 10% pay cut to live in an area that is 15% less expensive may have you coming out ahead. You might also be far less tempted to buy lunch daily, since you’ll have access to your kitchen. EY & Citi On The Importance Of Resilience And Innovation, Impact 50: Investors Seeking Profit — And Pushing For Change, moved 95% of its staff in 52 countries to home offices in just six weeks. Learn how to enable cookies. Greater acceptance of remote work has the potential to create more opportunities for marginalized groups, says Helen Ofosu, an HR consultant and career coach. You also need to weigh the cost of obtaining a local job in your new locale. But if it’s the employee asking to switch to permanent work-from-home mode, then the employer could impose a pay change as a condition for accepting the request, he adds. The question is: if half the white collar workers move out of the city ... how many service jobs will remain?

But can employers really trim paycheques for those who work from home? The result is the freedom to work anywhere. I forecast and analyze trends affecting the mobile ecosystem. Here's How to Do It Without One Survey shows people would accept an average 8 percent salary reduction to work remotely. And if you’re looking for the latest in employer solutions and advice, we recommend our Talent Solutions Blog. I spoke to the owner of a small business that’s had office space in San Francisco for most of the last decade. To be able to work at home a few days a week, some employees agree to a pay cut. We cover everything from career advice to the latest company headlines. But location-based pay could work against some of these positive impacts, according to Ofosu.

Concerns about pay changes are spoiling the work-from-home dream for Canadians who have learned to love their home office amid the COVID-19 pandemic. Everyone’s working at home, so why pay the lease? Imagine you’re looking at a $3,000 reduction in salary in exchange for being allowed to do your job from home. A modest income hit could be well worth the sacrifice if it results in a better work-life balance. Some HR experts worry this could lead to more pay discrimination. sets another record for one-day COVID-19 cases, Trudeau urges Canadians to do more to curb COVID-19 surge, Experts say Canadians permanently working from home should expect salary changes, Working from home during coronavirus? This company moves $10 trillion per year around the world in 75 billion transactions. Twitter announced last week that its employees can work from home forever. Therefore, when you contemplate a salary cut in exchange for working from home, ask yourself what your personal time and sanity are worth. John Koetsier is … Will coronavirus kill the traditional office as we know it? Location-based pay is nothing new, he notes. But what if your company is only willing to let you work from home in exchange for a pay cut? But if it’s the employee asking to switch to permanent work-from-home mode, then the employer could impose a pay change as a condition for accepting the request, he adds. Your company offers you the ability to work from home indefinitely, but with a 10% reduction in pay. Taking a pay cut to work from home? Read more: Employers in Silicon Valley, where six-figure salaries are often barely enough to scrape by given exorbitant housing costs, appear particularly keen on the idea. What’s happening right now is a perfect confluence of events: the technology that enables remote work in Slack and Teams and Zoom and Google Meet, and the burning platform of COVID-19 that it took for businesses to make the move. I forecast and analyze trends affecting the mobile ecosystem. As some employees begin to ponder the possibility of working remotely on a permanent basis, some employers are floating the idea of trimming pay for those who want to relocate far away from the office. Thanks for finding us! Of course, you don’t want to take too large a salary cut for the privilege of doing your job from home. First, assess the pay cut in question. Some expenses are up to employers, experts say. It could mean more good, government jobs for Canadians who live far away from the large cities where public-sector employers tends to cluster, she notes. Of course, you don’t want to take too large a salary cut for the privilege of doing your job from home.

Analyst and author Jeremiah Owyang ran a poll on his Twitter account yesterday that 717 people voted on. Want to discuss? Except, of course, blue collar workers and location-dependent workers in retail, hospitality, service, and food. Working from home might also help you save money in other ways. But 56% say they would not: they’d either continue going into the office, or they’d look for alternative employment. Working from home during coronavirus? Accounts Receivable Specialist (Remote/Temporary), Virtual Executive Assistant (Remote) | 9am to 6pm EST, Customer Success Business Analyst - Technical - Remote, Administrative Assistant (Bilingual, Partially Remote), When Confiding in a Coworker Isn’t Enough, Find a Trained Peer Counselor. If your earnings go down to the point where you might … If your earnings go down to the point where you might struggle to pay your bills, then perhaps that flexibility isn’t worth it, since the stress that might ensue could wipe out any benefits you stand to reap. If they can do it, anyone can. This is especially valuable if you have a longer commute. The vast majority of employment contracts in this country don’t have any clauses about geographic location or cost of living other than to mention you have to report to work at a specific address, he adds. A modest income hit could be well worth the sacrifice if it results in a better work-life balance. For example, if you have kids, you might manage to shave off some child care expenses, thereby saving hundreds or even thousands over the course of a year.

Copyright © 2008–2020, Glassdoor. And in many cases, employees aren’t suffering financially because of it. Please read our Commenting Policy first. Is that option worth the cost? Furthermore, when you work from home, you get the option to tend to household tasks in between work tasks so they’re not all left waiting for you late in the evening.

Opinions expressed by Forbes Contributors are their own. You may opt-out by. If you currently spend $250 a month on a train or bus pass to commute to your job, or a similar amount in fuel, then you’re effectively breaking even. But even if only 44% of people decided to take their companies up on an offer like this, it would disrupt work and office life as it’s evolved over the last 100 years. Experts say Canadians permanently working from home should expect salary changes.

A modest reduction in salary may not be all that bad when you consider the savings you stand to reap by not having to go into the office all the time. Are you an employer? Read more: In that scenario, “the employer can’t really say to their employee, ‘we want you to work from home and we also want you to take a 25 per cent pay cut’,” Monkhouse says. Home > Should You Take a Pay Cut to Work From Home? The study, by economists from Princeton and Harvard universities, examined how much workers value remote jobs and other alternative work arrangements. Among its conclusions: although employees place a high value on work-from-home options, only nine percent of companies offer such alternatives … Facebook has famously warned employees that if they permanently relocate to an area where the cost of living is lower, they should expect a pay cut. I've been a journalist, analyst, and corporate executive, and have chronicled the rise of the mobile economy. He gave notice on their $10,000/month office rental a month or so ago. Much of the time, workers who do their jobs remotely earn the same salary as in-office employees, according to FlexJobs, and in some cases, work-from-homers even earn more. Working from home is having a moment. And now 44% of us would take a 10% pay cut to get the same privilege. Do you accept because you can reduce your cost of living by potentially moving to a cheaper region? Some expenses are up to employers, experts say. Glassdoor will not work properly unless browser cookie support is enabled. And the switch to remote work, combined with location-based pay, could create new and stronger incentives for employers to hire workers in cheaper jurisdictions outside Canada, according to Venditti.