The average employee returning to the office spends $561 per month–that's the average two-person household’s grocery bill in the U.S. for the entire month.
Are people forgetting that the salaries were high in high cost of living areas to account for this cost. In the new normal, should employees expect pay cuts, or should employees that opt in to in office expect higher pay or stipends?
Also, curious about tax advantaged commuter benefits. Sure sticker cost is a months groceries, but if you are commuting and able to pay that pre tax for Metro or rail passes, it’s only 66 percent of the sticker cost.
Also I think the pet and childcare costs are interesting. For child care, is that assuming like 1 or 2 extra hours of childcare per day?
Many large companies that support wfh, set pay scales based on where you live, not where they are. If you live in a low cost of living area you get paid less. Live in a high cost of living area get paid more.
Before you start jabbering about how companies don’t do that… They do. Just because you don’t work for one, or don’t know about your own companies policies you should look it up. Most companies are pretty discreet about it and people don’t talk about taking pay cuts to move to low cost of living area but it is common.
Yep. The way I’ve heard of it actually happening to folks where I work is when they moved during the pandemic their pay didn’t immediately change. But when they got their promotion, they got a 0% percent increase because that was when they recalculated the cost of living adjustment. So maybe they got a 12% raise, but moved to a place with a 15% lower cost of living. So they weren’t going to piss off the employee by rewarding with a pay cut, but use that as the time to reset compensation leveling.
This article is saying the average is ~$500 a month. Imagine pre pandemic work norms. If your employer offered you $500 less a month, but the trade off was you got to work fully remote, would you take it?
Are people forgetting that the salaries were high in high cost of living areas to account for this cost. In the new normal, should employees expect pay cuts, or should employees that opt in to in office expect higher pay or stipends?
Also, curious about tax advantaged commuter benefits. Sure sticker cost is a months groceries, but if you are commuting and able to pay that pre tax for Metro or rail passes, it’s only 66 percent of the sticker cost.
Also I think the pet and childcare costs are interesting. For child care, is that assuming like 1 or 2 extra hours of childcare per day?
Many large companies that support wfh, set pay scales based on where you live, not where they are. If you live in a low cost of living area you get paid less. Live in a high cost of living area get paid more.
Before you start jabbering about how companies don’t do that… They do. Just because you don’t work for one, or don’t know about your own companies policies you should look it up. Most companies are pretty discreet about it and people don’t talk about taking pay cuts to move to low cost of living area but it is common.
Yep. The way I’ve heard of it actually happening to folks where I work is when they moved during the pandemic their pay didn’t immediately change. But when they got their promotion, they got a 0% percent increase because that was when they recalculated the cost of living adjustment. So maybe they got a 12% raise, but moved to a place with a 15% lower cost of living. So they weren’t going to piss off the employee by rewarding with a pay cut, but use that as the time to reset compensation leveling.
Seems like everyone in this thread is okay with pay cuts as it is less than the benefit.
This article is saying the average is ~$500 a month. Imagine pre pandemic work norms. If your employer offered you $500 less a month, but the trade off was you got to work fully remote, would you take it?
Yep. I took a larger one because I changed industries and location too.