01.10.2024
HOW MUCH MONEY IS SAVED WORKING FROM HOME
New research into the travel habits and associated costs of office workers has revealed the significant savings that can be made by working in a hybrid model. Research by the International Workplace Group shows that employees can save up to $30,332 a year in the US and £13,188 in the UK by working closer to home in the heart of their local communities.
The study found that the average daily cost of an employee who works from their headquarters is $48.40 (a total of $10,067 per year for employees spending four days a week at their headquarters). The most commonly purchased items include lunch (74%), snacks (60%) and coffee (50%).
Working locally can significantly reduce day-to-day travel costs, allowing workers to save for other financial priorities. More than three-quarters (76%) say hybrid working has reduced their monthly costs, taking into account factors such as the cost of public transport tickets, fuel, parking and the daily extra costs of morning coffee and food.
The study, conducted by the International Workplace Group and consultancy Development Economics, combined research on more than 2,000 office workers with publicly available transport data, analyzing multiple hybrid scenarios with a focus on the popular hybrid model of working locally four days a week.
The study reveals that employees who commute long distances on a daily basis incur significantly higher costs, while missing out on the many work-life balance benefits that working nearby provides. Workers can now better understand the savings they could make by moving to a closer job using this new online calculator from the International Workplace Group http://www.iwhybridcalculator.com/
These significant savings could be especially transformative for younger workers looking to pay off debt or save for financial goals such as a down payment on a home. A 24-year-old Gen Z worker living in the popular commuter town of Red Bank, New Jersey, for example, can expect to save up to $388,320 over his working life just in commuting costs , if he instead works locally four days a week.
Workers in all areas report significant cost reductions when working locally. Four in five (84%) say a reduced commute has put them in a better position to meet their financial goals. Two-in-five (38%) report adding their savings to a 'breakfast' fund, and almost as many use holiday savings (37%) and more than one-in-three (35%) put their savings towards a full paying off credit card debts.
Reducing daily long commutes proves to have numerous benefits beyond cost savings. 84% of respondents said that spending less time commuting had a positive impact on their work-life balance, with 40% using the extra time to relax or pursue hobbies, and a significant some spend the time saved from traveling in activities that support their physical (38%) or mental health (34%).
Scientists such as Professor Nicholas Blum of Stanford University expect that up to 30-40% of employees will work in a hybrid model in the long term. As businesses steadily shift to hybrid working, further research from the International Workplace Group and Arup found that the number of office workers in major cities could increase by up to 60%. As more workers embrace this trend, it's no surprise that two-thirds (60%) express a desire to work within 15 minutes of where they live.
Mark Dixon, CEO of International Workplace Group, says: “It won't be long before the concept of the long daily commute is consigned to history. The idea that every morning office workers will wake up early, get into polluting cars or crowded trains and travel many kilometers to their workplace will very soon be an oddity that people only did in the past. Our research with Development Economics highlights the significant savings that hybrid employees can now invest in other aspects of their lives, whether that's helping them get into the housing market or saving for other financial goals and milestones.”
