ARLINGTON, Va.--(BUSINESS WIRE)--As businesses ramp up their efforts to get employees back in the office, workers say the higher cost of essentials such as gas, food, and childcare is dampening their return-to-office (RTO) enthusiasm. Capterra’s 2024 Cost of Work Survey of over 2,700 global employees reveals that 60% of respondents say their personal financial costs to work have increased in the past twelve months.
Many employees are returning to offices around the globe but most don’t want to. Close to half of workers (45%) now work at a company office, store, or other workplace full time, despite only 14% saying this is their preference. Of the 20% of employees who are required to work more days onsite at a company workplace now than they did a year ago, 57% feel negatively about it.
“Employees used to commute to work without questioning the cost to do so. That’s no longer the reality in 2024,” says Brian Westfall, principal HR analyst at Capterra. “Inflation has made coming to the office more expensive than ever, and if companies don’t address this cost-of-work crisis, they will have a hard time getting employees to RTO happily.”
Capterra’s survey identified four potential solutions to help facilitate RTO successfully based on data from global employees:
Solution #1: Cover costs through employee stipends
Companies can reduce the cost-of-work burden by taking on these costs themselves. When working onsite, most employees feel their employer should completely pay for parking (72%), uniforms (67%), toll roads (51%), and public transportation (50%). Most (68%) also feel their employer should at least share the cost of gasoline and food.
Solution #2: Reduce costs through flexible policies and onsite events
There are several ways to reduce costs, including having a more casual dress code for the office and implementing flexible hours. A notable 35% of employees say they would enjoy working onsite more if there was an informal dress code. Through flexible work, employees can choose their arrival and departure times to avoid peak traffic hours, reducing their costs for gas, toll roads, and public transportation.
Solution #3: Help employees budget better through financial wellness programs
Offer financial wellness benefits that can help employees better manage the costs they have. Provided by a qualified coach in-person or, increasingly, through dedicated software, financial wellness programs give employees access to personalized financial support. They can track their expenses, set up savings plans, and come up with a game plan to meet their financial goals.
Solution #4: Offset costs to be at the office by reducing hybrid and remote worker compensation
Over a third (36%) of employees who work remotely at least part of the time say they would take a pay cut to keep working remotely. However, this strategy is risky—if you cut pay too much, remote employees will just leave.
Westfall suggests, “Stipends are the most direct way to mitigate these costs for employees, but this isn’t the only solution. Financial wellness benefits can help employees better budget their pay; flexible schedules can reduce the time employees spend in costly traffic. HR leaders need to be proactive and creative to reduce this financial burden on their workers.”
For additional insights, expert analyses, and actionable recommendations that can help HR leaders navigate RTO, visit Capterra.com.
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