The employees pay for their commute or lunch, childcare and many more. But how much do they have to pay and how do remote jobs alter the equation?
- The expenses of employees have typically included expenses related to work like lunch, commuting coffee, and clothing. Other expenses that are common like the care of pets and children, occur outside of work but are nevertheless a part of work.
- 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 to half remote, and half in the same.
- The article is designed for executives and employees who are interested in how remote working arrangements can save money.
makaryo.net A study by the National Bureau of Economic Research has determined that 37 percent of American jobs could be performed remotely. Flexible scheduling is a advantage for employees as staying at home could help them save money on travel or child care, among other things. Employers can also benefit even though they may be less in control of a remote workforce remote working arrangements could also save them money. Here’s what employees and employers alike need to know.
These are the most common expenses that employees face on a regular basis, whether on a weekly as well as a monthly.
- Drivers: A 2019 study by the Census Bureau fou9iond that the average American who commutes via car is spending 27.6 minutes in the transit system in each direction. In the early 2021s, the American automobile fleet was at an average of 24.9 miles for every gallon of gas, as reported by the Environmental Protection Agency. If you assume that highway travel is at 65 miles per hour this is 2.43 Gallons of gasoline each day. Also, if you assume that the average national cost of gas is $3.514 each gallon it’s $8.53 for each day of the week. With around 250 work days each year, that’s $2134 annually.
- Public transport: According to Statista the national average fare for public transportation is $1.52 per trip at the time of 2020. That’s $3.04 for a ride to work and back. With 250 days of work annually that’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 consume $5-10 on lunch each day, while another 13% of them spend between $10-$25. The average is approximately $1,250-$6,250 on lunch every year. Read the QuickBooks review to find out 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 include homemade coffee as well as drinks purchased at cafes directly. A study by Amerisleep discovered that employees in the fields of finance and insurance consume the most cafe coffee, which amounts to $709 annually.
- Daycare: A 2019 report by American Progress found that working families spend an average of $250 per week on daycare to their kids. This is $13,000 annually.
- Pet care A typical American pet-owner spends around $111 a month on their pet as per OnePoll survey results. The 2021 MetLife survey revealed that 38 percent of pet owners who return for work in person had plans to increase their spending on their pets. A further 23% of respondents said they’d be willing to prefer to take a salary cut in order to stay home and oversee their pets.
- Fashion: 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 this can allow them to reduce costs and make better choices in their lifestyles if they are needed.
How much do remote workers can save?
The COVID-19 pandemic has triggered dramatic rises in work-from-home options as well as the opportunity to evaluate how much savings previously commuters could save.
At the time of the pandemic Zippia discovered it was possible that Remote work can reduce costs for employees by around $4,600 per year across all kinds of categories. The 2021 LendingTree study also revealed that switching to remote work could help the average American cut down on their debt. In the same period, Bankrate found that nearly 60% of employees who work remotely realized that working from home helped improve their financial standing.
Employers gain from work-from-home plans in addition. Remote teams eliminate the requirement for an office space and all the expenses that go from it. Companies that maintain their offices, but change to half-remote and half-in-person plans could reduce their expenses. As per Global Workplace Analytics, this arrangement could reduce the cost for a small-sized business owner around an average of $11,000 per employee over the course of a year. This is money that you can put back to your employees.