The shift to remote work during the pandemic brought unexpected benefits for employees, including improved work-life balance and significant cost savings. With the absence of daily commutes and the ability to manage meals at home, many found themselves spending less money since working remotely. However, as companies call employees back to the office, the question arises: Can you really afford it?
Rising Costs & Changing Perspectives: While employees could afford these costs before the pandemic, two significant factors have altered the landscape.
Firstly, the cost of living has surged, increased mortgage rates and travel costs, petrol prices and rises in train fares make the traditional commute more expensive. Prior to COVID-19, the average price of petrol according to the RAC was 125.78p. In 2023, that’s shot up to 153.50. It’s the same when it comes to train fares. It’s expected that the cost of a season ticket rose by 12.3% in 2023, which added £620 per year to the price of an annual ticket from Reading to London at £5,664. The cost of food, heating and other everyday essentials is also rising, we really are reaching a point where employees quite literally cannot afford to go to the office.
Secondly, employees’ perspectives have shifted; the pandemic highlighted that many daily expenses associated with office life are not essential for efficient work. Many simply aren’t willing to pay out for anything that they deem unnecessary.
Addressing the Cost of Working: Companies face a dilemma—address the rising cost of going to work or risk losing top talent. While increasing salaries may not be possible for all organisations, there are alternative strategies:
Flexible and Hybrid Working Policies
Introduce flexible or hybrid working options, allowing employees to work non-standard hours or from home part-time.
Encourage car-sharing to reduce fuel and parking costs.
Salary Sacrifice Schemes
Implement salary sacrifice schemes, enabling employees to exchange part of their salary for non-monetary benefits like childcare or bicycles, resulting in reduced tax payments.
Employee Wellbeing Initiatives
Consider cost-effective initiatives like providing free breakfasts in the office, promoting a positive workplace culture and addressing employees’ concerns without a substantial salary increase.
As companies grapple with the challenges of recovery, addressing the rising cost of returning to the office becomes a strategic differentiator. While salary increases may not be universally possible, innovative solutions such as flexible working policies, salary sacrifice schemes, and wellbeing initiatives can show a commitment to employee satisfaction and retention. At a time when businesses are already struggling and working to reduce the cost of returning to the office, in a competitive talent market, organisations that actively respond to the evolving needs of their workforce will likely attract and retain top talent more effectively and can be a differentiator that sets a company apart from those that are not acting.
