Are You Saving Money Automatically By Working From Home?

Business LoungeJuly 12, 2022

Before the COVID-19 pandemic, companies were reluctant – and largely unprepared – to let their employees work from home. Part of the reason was it was naive for employers. Secondly, they did not have the right equipment, resources, and strategies to enable their employees to work remotely. But as the coronavirus outbroke, working from home remained the only option.

The COVID SOPs, like social distancing, less interaction, wearing masks, and remaining in lockdowns, became common. Consequently, employers had no option but to let their employees work from home.

Christina / Pexels / Given the SOPs of the COVID-19 pandemic, remote work seemed to be the only option.

However, some companies failed to adjust to this uncertain situation, so they either fell behind or closed down completely, firing their employees. In contrast, other businesses managed to equip their employees with remote work essentials.

This seemed a win-win situation both for employees and employers. Recently, we have been seeing the other side of the coin. Employees no more want to work from home. Reasons like boredom in the confines of homes, no interaction with office colleagues, and less productivity add to the failure of remote work. Similarly, employers are also dissatisfied with the performance of their remote working employees.

Andrea / Pexels / 43% of American employees want to get back to the office, shows a report from Kestle’s Back to Work Barometer.

Does Working Remotely Help in Saving Money?

As employees started working remotely, they assumed they would save a lot of money. Fair enough! If you are working from home, it means you are not paying the additional costs that come with in-office requirements. Things like transportation expenses, lunch in the office, and dining out with your coworkers.

Andrea / Pexels / Although working from home makes you stay away from additional expenses, you are still unlikely to save money from remote work.

But the current soaring inflation remains the biggest factor, even if you work from home. Electricity bills, mortgages, gas, groceries, and other essentials of life are at a record-breaking high rate. Consequently, if you are doing your job from the comfort of your home, you are still likely to give out a lot of cash just to sustain your life.

Soaring Inflation Still Remains A Question Mark for Remote Workers

In the initial months of 2022, electricity and gas bills soar up to 11%. Likewise, the rates of groceries and household essentials continue to soar. Since these are the basic needs of life, you are very likely to pay these high costs, whether you like it or not. Thus, remote work is not helping you save money in the long run.

Apart from the soaring electricity and gas bills, other essentials like WiFi and home-based office are not cheap either. Since these resources are essential for remote work, you are likely to pay a high cost for these remote work essentials. Consequently, you will not be able to save money.

Another problem is that a vast majority of U.S-based companies do not offer a budget for home-based offices. According to Employer Council, companies that offer additional budgets for remote work resources are as low as 3%. Thus, as you are entitled to pay for these, remote work is not helping you save money.