Employees are paid for commuting or lunch, childcare and much more. But, just how much do they have to pay and how can remote work affect the situation?
- The typical employee expense has included costs related to work, like lunch, commuting, coffee , and clothes. Other expenses that are common include child and pet care occur outside of work however, they are still a result of the job.
- Remote work can save workers thousands of dollars a year, particularly on travel and childcare.
- Employers could also save thousands of dollars per employee each year by switching them to half remote, and half in individual.
- This post is designed for executives as well as employees interested in how remote work arrangements can save money.
makaryo.net A study by the National Bureau of Economic Research has discovered that 37 percent of American jobs are able to be completed remotely. Flexible scheduling is a benefit for employees, because staying at home can reduce the cost of commuting as well as child care. Employers also gain even though they may be less in control of a remote workforce remote working arrangements could help them save money as well. Here’s what employees as well as employers should be aware of.
Employee-related expenses for work
These are some of the typical costs that employees incur on a regular basis, whether on a weekly and monthly.
- Drivers: A 2019 study by the Census Bureau fou9iond that the average American who commutes by car takes 27.6 minutes in the transit system in each direction. At the time of early 2021 the American automobile fleet was at an average of 24.9 miles per gallon as reported by the Environmental Protection Agency. If you assume that highway travel is with speeds of 65 miles per hour this is 2.43 gallon of gas consumed each day. Also, if you assume that the average national cost of gas is $3.514 for a gallon this is $8.53 per working day. With approximately 250 working days in a year, that’s $2,134 per year.
- Public transport: According to Statista the national average fare for public transport is $1.52 per trip at the time of 2020. That’s $3.04 for a ride to work and back. With 250 working days each year it’s $760. Of course, the cost of transit can vary greatly based on the location and distance traveled.
- Lunches: A 2019 QuickBooks survey revealed that 39% of workers pay $5-10 on lunch each day, while an additional 13% pay between $10-$25. It’s about approximately $1,250-$6,250 on lunch each year. Read the QuickBooks review to know more about the accounting software used by this company.The software is able to handle a variety of transactions.
- coffee: A study by The Perfect Brew found that men in the United States spend $1,934 a year on coffee while ladies spending $2,327. These figures cover homemade coffee as well as drinks purchased at cafes directly. A survey conducted by Amerisleep discovered that insurance and finance employees are the ones who spend the most on coffee in cafes, averaging $709 annually.
- Daycare: A 2019 report by American Progress found that working families usually spend $250 each week for day care of their youngsters. This is $13,000 annually.
- Pet care A typical American pet-owner spends around $111 monthly on their pet as per OnePoll survey results. The 2021 MetLife survey revealed that 38 percent of pet owners who return to work in person planned to increase their spending on their pets. Another 23% stated that they’d prefer to take a reduction in their pay to stay home and oversee their pets.
- Clothing: In 2019, the U.S. Bureau of Labor Statistics reported an average American spends $1,883 a year on clothing.
If employees are able to have a greater knowledge of how much they spend for their commute and how much they are spending, it will help them reduce costs and make better lifestyle decisions if needed.
How much do remote workers can save?
The COVID-19 pandemic has triggered dramatic rises in work-from-home options and also opportunities to determine how much savings the former commuters could save.
In the early days of the pandemic Zippia discovered the fact that working remotely could reduce the cost of employees by 4600 dollars annually across all types of work. In 2021, a LendingTree study also revealed that switching to remote work could help the average American lower their debt. In the same period, Bankrate found that nearly 60% of employees who work remotely realized the benefits of working from home to improve their financial standing.
Employers can benefit from working from home arrangements in addition. Remote teams eliminate the requirement for an office space and all the expenses that go along with that. Companies that maintain their offices, but change to half-remote, half in-person arrangements can cut expenses. Based on Global Workplace Analytics, this arrangement could help save a small-sized business owner around 11,000 dollars per employee every year. It’s money you can invest back to your workforce.