WX trends: The cost of work crisis – are employers doing enough?
Our workplace experience (WX) trends series looks at recent news articles, videos, social media posts and thought leadership pieces on workplace experience. You’ll also hear from our experts on what’s trending.
In this WX trends, we look at how factors such as inflation drive up the cost of work. Next, we explore creative benefits that help with the rising cost of work. Finally, we learn about the one benefit that workers are hoping for.
From commutes to childcare – how much does your job actually cost?
If employers want their workers to return to the office, they need to start covering some of the costs associated with it, says a recent survey by Capterra.
The survey, which included 2,716 employees globally, revealed that over half of the respondents expect their employers to pay for expenses like parking (72%), uniforms (67%), and toll roads (51%), according to an article in Human Resources Director U.S.
With inflation driving up the cost of commuting, 60% of employees feel the pinch more than ever, especially those in hybrid roles. Many said they’d either ask for a raise or start looking for a new job if forced to cover the expenses themselves.
Brian Westfall, principal HR analyst at Capterra, points out that commuting costs were once taken for granted but are now a significant burden, the article continues. To address this, Capterra suggests solutions like offering employee stipends, adopting flexible policies, and providing financial wellness programs.
They also propose adjusting compensation for hybrid and remote workers to offset office return costs, the article concludes. These measures aim to ease the financial strain on employees and encourage a smoother transition back to on-site work.
“Encouraging employee feedback is as important as ever as workplaces navigate this,” says Holly Grogan, Chief People Officer at Appspace.
Benefits that can help
Remote and hybrid work have shown employees the perks of skipping the daily commute. But as companies push for a return to the office (RTO), the associated costs are a growing concern, according to an article in the Harvard Business Review (HBR).
HBR’s research found that 60% of employees feel the cost of commuting outweighs the benefits, 67% find it more effortful than pre-pandemic. And 73% say it’s pricier. Nearly half of the employees surveyed believe RTO mandates prioritize leadership preferences over their actual work needs.
To attract and retain talent, companies are getting creative with benefits to address these costs directly, the article continues. This includes housing subsidies to ease the burden of living close to work or offering company-owned apartments for short stays.
Caregiver benefits are also on the rise, with companies providing onsite childcare, eldercare support, and pet care services. Financial wellbeing programs are expanding, offering employees personal financial planning and education. With 43 million Americans burdened by student loans, some companies are helping with student loan repayment. These benefits aim to reduce the overall cost of work, making the office return more appealing and sustainable for employees.
It’s crucial for companies to innovate and think deeply about what will make a difference for their talent, says Grogan.
The one benefit that could help the most workers?
Being able to afford a home is a growing issue in the U.S., and companies are seeing an opportunity to entice employees back to the office with housing benefits, according to an article in Business Insider. A survey by JW Surety Bonds revealed that 47% of employees would return to the office for housing perks, and 69% would even change jobs for such benefits.
Traditional office perks are being outshined, with 43% of respondents willing to sacrifice vacation time for housing assistance, and 30% preferring it over a pay raise.
Some companies are leading the way, the article continues, with initiatives like rental subsidies and building affordable housing near office locations. The JW Surety Bonds survey found that 77% of those with housing benefits report high job satisfaction, compared to 60% without.
Employers are increasingly recognizing housing assistance as a competitive necessity. JBS Foods, for example, is spending over $20 million on housing expenses for employees in some cities across the country, sometimes negotiating better mortgage terms for them.
Oracle’s Nashville campus plan includes infrastructure improvements to shorten commutes, demonstrating the varied approaches companies are taking to tackle the housing crisis and improve employee retention.
