PITTSBURGH--(BUSINESS WIRE)--As employers grapple with whether to recall their teams to in-office work or to offer more flexibility with a remote or hybrid workforce, new data revealed by First Insight indicate that remote/hybrid workers are more negatively impacted by the effects of inflation than full-time in-office workers. Fifty-six percent of remote/hybrid workers say that inflation is causing them to worry about their salaries or current job situation compared to 51% of in-office workers. High grocery prices are impacting the daily lives of 62% of remote/hybrid workers compared to 55% of in-office workers. Discretionary spending is taking a hit as well. Dining out is being reduced by 27% more remote/hybrid workers while travel and vacations are being cut back by 42% more remote/hybrid workers.
“Employers who believe they are doing the right thing by continuing the remote/hybrid way of working may actually be doing their workforce a disfavor if they are not overly communicating with their teams,” said Greg Petro, CEO, First Insight. “Whether caused by less in-person connectivity, lack of communication or a varying schedule, the remote/hybrid workforce clearly has more concerns about how inflation will hit their wallets than their in-office counterparts.”
While the report finds that everyone has less confidence to spend in the current economic climate, remote/hybrid workers are making different purchasing decisions than their in-office counterparts in order to deal with rapidly rising prices of gas and groceries. Food is, overall, one spending category where the biggest differences in spending can be found. Seventy-one percent more remote/hybrid workers have started shopping at bulk or warehouse clubs to get more value for their dollar.
Remote/hybrid workers are noticeably cutting back on premium priced groceries with 39% reducing their spend on meat and seafood versus 33% of in-office workers; 30% cutting out organic foods compared to just 21% of in-office employees; and 22% reducing bread/bakery purchases compared to 15% of their in-office counterparts.
With remote/hybrid workers presumably making coffee at home, it’s not surprising to see that 55% more remote/hybrid workers are reallocating money previously spent on specialty coffees and beverages.
Interestingly, one place where in-office workers were cutting back more than their remote/hybrid counterparts was on electronic gaming. Thirty percent of in-office workers say that they will reduce their spending on games, with only 26% of remote/hybrid workers saying the same.
The report also finds:
- Across the entertainment category, remote/hybrid workers are spending less on nearly all activities. Going to the movies is being cut by 23% more; concerts 52% more; sporting events 42% more; streaming services 41% more; amusement parks 24% more; and museums 44% more. Fifteen percent more in-office workers are reducing their entertainment spend on electronic games compared to remote/hybrid workers.
- In the apparel category, remote/hybrid workers are cutting back on all categories more than in-office workers. Not surprisingly, the biggest disparities in spending are for dress shoes, with 33% of remote/hybrid workers spending less versus 25% of in-office workers; 30% of remote/hybrid workers reducing purchases of seasonal apparel compared to 22% of in-office workers; and 25% cutting down on professional work apparel compared to 18% of those in-office.
- When it comes to travel, 46% of remote/hybrid workers are driving less frequently compared to 40% of in-office workers; 40% are taking fewer vacations compared to 33% of in-office workers; and 25% are reducing their spending on hotels compared to 19% of in-office workers.
Download the full report here.
About First Insight
First Insight, the world leader in Next-Gen Experience Management (XM), is transforming how companies make better decisions leading to a sustainable future. Customers include some of the world’s leading vertically integrated brands, department stores, consumer products companies, mass merchant retailers and wholesalers. For further information, please visit www.firstinsight.com.
Methodology
First Insight’s findings are based upon a survey conducted through its proprietary platform. The report is based upon a sample of 1000 U.S. adults fielded in April 2022. The sample was proportionately balanced by generation, region, and gender. The findings in this report specifically looked at remote/hybrid and in-office full-time. Further details on the findings are available upon request.