A paper entitled “Why Working from Home Will Stick” finds that Job seekers may take the same job with a 5% to 10% pay cut if it allows a WFH option. Also, if you are in a war-for-talent employers may have to offer much higher pay to retain staff.
Based on a recent survey of 30,000 Americans the abstract states that 20% of full workdays will be supplied from home after the pandemic ends compared with 5 % before and supplies evidence for 5 reasons for this trend;
- Better-than-expected WFH experiences;
- Investments in physical/human capital that enable WFH;
- Greatly diminished stigma associated with WFH;
- Lingering concerns about crowds and contagion risks and;
- A surge in tech-innovations that support WFH.
From this they project 3 consequences:
1. Employees will enjoy large benefits form remote work;
2. The shift to WFH will reduce spending in major city centres by at least 5 to 10% compared to pre-pandemic periods;
3. A 5% productivity boost is predicted in the post-pandemic economy due to re-optimised working arrangements.