Last year was the most extreme experiment in remote work. It took place under enormously challenging circumstances, and many businesses were unprepared for it. Despite this, there is much evidence to suggest the experience has been an overwhelmingly positive one for employees and business leaders, and productivity levels have remained high. Importantly, it has shone a light on the virtues of virtual and flexible work models, and in a post-pandemic world, it seems likely that remote working will permanently remain, in some shape or form.
Wanting to explore the subject in more depth, we recently surveyed 1,000 UK office workers to see how their perceptions of remote working have changed in the wake of COVID-19. A significant finding was that 75 percent of respondents said that they would accept, or have accepted, a pay cut in return for a fully remote role that allows them to work from anywhere. On average, respondents would be willing to take a 14 percent pay cut in return for a 100-percent remote role. Based on the current average UK salary of £30,472, this would represent a gross reduction of around £4,266 per annum on average per worker.
To break the data down further, just over a quarter (26 percent) of workers would be prepared to accept a pay cut of more than 20 percent in exchange for the ability to be able to work remotely all of the time. A further 27 percent would accept a pay cut of between 15-20 percent, with an additional 22 percent being open to a pay reduction of up to 15 percent, for an entirely remote role.
Since the start of the pandemic, employees have seen the potential for remote working to deliver a healthier work-life balance — something that many have been striving to achieve for years. The fact that UK workers are willing to forgo a significant portion of their salaries to achieve such flexibility on a permanent basis highlights what a priority it has become. This income reduction must also be balanced with the money an individual would save with no commute and lower living costs outside of a city, for example.
Interestingly, the study identifies a significant gender gap: 80 percent of male respondents would consider a pay cut in return for the ability to work from anywhere, while 70.5 percent of women would be open to the same idea. Age is also a factor when it comes to the choice between pay and flexible working. Those aged between 45 and 54 were prepared to take the largest salary sacrifice, averaging 16 percent, or £4,887 gross salary, based on the national average income. Nearly one in five (17 percent) employees within this age group were willing to forgo more than 25 percent of their salary for remote working. The over 55s were the least open to salary reductions for the benefit of remote working, with 36 percent saying they would not accept a pay cut for permanent remote working.
Considering the impact of geographic locations, respondents from the East Midlands would be willing to let go of 15 percent of their salary to work remotely. This would represent a £4,717 cut based on today’s national salary average. Workers from Scotland were at the other end of the scale. While there was still a willingness from respondents to forgo some of their salaries for permanent remote working, their average accepted pay reduction for such a benefit was 9 percent. In London, 77 percent of respondents would be willing to accept a pay cut, if they could work remotely; in fact, 47 percent of Londoners would agree to pay reduction of 20-30 percent.
The technology that enables remote working has been available for quite some time, but people and policies, along with issues of trust, have held back many businesses’ progress in this area. The global pandemic has helped to break down those barriers and enabled individuals to take control of their working lives like never before. Those wishing to spend more time working remotely are no longer burdened by outdated cultures and stigmas. Whether you are working from home, a collaborative working space or a coffee shop, with the right technology, employees can benefit from the same secure digital workspace they would traditionally have experienced in the office, remaining productive and engaged wherever they log on.
The past year has triggered a desire for a more flexible future, where workers feel less under pressure to work from an office or to live in a city. While business leaders are just beginning to review the impact remote working has had upon their workforce and organisation, it seems likely that flexible working will become core to the employee experience in 2021 and beyond.
