The COVID-19 pandemic has catalysed significant changes in the workforce dynamics, particularly in Australia, where nearly half of the workforce is open to reducing their annual income in favour of the ability to work from home.

Recent findings from the University of South Australia reveal that 45% of employees are ready to accept a lower salary to work remotely. This research, encompassing over 1100 Australian employees during 2020-21, highlighted that the typical employee who can perform their job effectively from home is inclined to forgo between $3000 and $6000 of their yearly salary (representing 4 to 8% of their income). Interestingly, a fifth of those surveyed were willing to sacrifice $12,000 to $24,000 annually (16 to 33% of their income).

Despite these findings, a majority (55%) of the respondents were not prepared to decrease their wages to work from home, citing no significant benefit to productivity or well-being, alongside various concerns regarding remote work.

Associate Professor Akshay Vij, the lead researcher, emphasised the need for further studies to fully grasp employee preferences towards remote and flexible working arrangements, considering the diverse attitudes and expectations. He noted that perspectives on the impact of remote work on personal relationships and interactions play a crucial role in these differing attitudes. Specifically, individuals less enthusiastic about remote work expressed concerns regarding their relationships with colleagues and supervisors and the potential missed opportunities for learning and career advancement.

The study also uncovered that experiences with remote work before the pandemic influenced attitudes, with those more accustomed to remote working expressing more reservations than their less experienced counterparts, who showed a more positive outlook towards working from home.

Differences were also seen across genders and age groups, with female employees and those in their 30s and 50s showing a higher appreciation for remote work than their male and younger counterparts. This variation is likely due to the younger demographic valuing in-person interactions for their career progression more highly.

Families, particularly those with children at home or those who had left home, were more inclined to reduce their salaries for the opportunity to work remotely than childless couples, single parents, or those living alone or with housemates.

The shift in working preferences is evident when comparing remote working statistics from Census data 2016, where only 2 to 8% of employees in major Australian cities worked remotely, to 2021, where this figure rose to 21%. This shift has prompted workplaces globally to adapt, creating the necessary protocols and processes to facilitate remote work.

While Associate Professor Vij believes it’s too soon to predict the long-term status of working from home, its prevalence will likely remain higher than pre-pandemic levels, albeit with significant variability among different demographic groups. The suitability of remote work varies from person to person, emphasising the importance of finding a balance that caters to employee and employer needs.

The COVID-19 experiment with remote work has had its share of pros and cons. On the downside, the potential for reduced interaction with colleagues and supervisors might impact motivation and productivity. Younger workers could find themselves with fewer mentoring opportunities, and being away from the office may hinder understanding of office dynamics, affecting career progression and salary increments. Additionally, working from home could lead to increased household expenses and necessitate investment in office equipment.

Conversely, the benefits of remote work are significant, including improved well-being, better work-life balance, and health advantages. Remote working enables employees to manage home-related emergencies more efficiently and enjoy meals with family. The flexibility and personal freedom, alongside savings on transport and daily expenses, are substantial positives of working from home.

More information: Akshay Vij et al, Employee preferences for working from home in Australia, Journal of Economic Behavior & Organization. DOI: 10.1016/j.jebo.2023.08.020

Journal information: Journal of Economic Behavior & Organization Provided by University of South Australia