How Remote Employees Are Losing $22,000 a Year Working From Home

Did you know that remote workers are losing thousands of dollars for working at home compared to a person with the same job, just in office?

Despite a good portion of the workforce enjoying the work from home benefits and work-life balance, some companies are mandating that their employees return to office work. Deciding to work remotely can cost employees a major chunk of income for the luxury of being able to make lunches in their own kitchen, be with their pets, throw a load of laundry in the washer, not having to worry about travel, wearing comfy clothes, among other countless benefits.

A new study from ZipRecruiter via Fortune uncovered that remote employees will earn 33% less than in-person employees with the exact same role. On average, United States-based companies in 2024 are offering an average salary of $82,037 for 100% in person roles. Meanwhile, a hybrid employee is averaging $59,992, while fully remote jobs average $75,327.

Meanwhile, those workers who chose to go from fully remote to in-office received a 29.2% pay increase in last year, presumably for the loss in comfort, travel and flexibility. Additionally, 1/3 of all posted job openings in the United States are advertised as hybrid or fully remote.

In 2022, Microsoft published a study which unveiled that 85% of business leaders in the United States believe that the “shift to hybrid work has made it challenging to have confidence that employees are being productive.” In addition, 49% of managers of hybrid employees are struggling “to trust” that their workforce is providing their “best work.” The study concluded that leaders are fearing the loss of productivity not being able to see what the employees are actively doing despite the fact that employees’ “hours worked, number of meetings, and other activity metrics have increased.”