Many workplaces have implemented return-to-office mandates, but at what cost?
Approximately $6,736 per year, or 9.3% of a typical salary, according to a resume builder Resume.io analysis, which called the cost an RTO tax. For parents who need to pay for childcare while they’re in the office, that figure jumps to an estimated $16,538 annually.
Resume.io used responses from an August Pollfish survey of 1,000 full-time U.S. employees who work in the office at least one day per week. The survey solicited responses from workers on what they spend weekly on transportation, parking, eating and their outfits, as related to work. Respondents represented 36 metros, and time estimates were based on an average attendance of 4.18 days per week.
“Going to work has quietly become one of the biggest costs in a lot of people’s budgets,” wrote Bethany Watson, a digital PR manager at Resume.io.
Most of that expense comes from commuting, the survey found. Workers spend about $2,751 annually on getting to the office, factoring in public transit and gas costs. More than half say their costs have risen in the past year, and 19% say costs have gone up “a lot.”
But the cost is not only in dollars, the report found; employees also lose about 23 full eight-hour workdays to their commute each year and about 17 days in preparing for the office, including showering, getting dressed, doing their hair and making food to bring in.
Those costs can be important factors when candidates assess which jobs to accept, Amanda Augustine, resident career expert at resume.io and a certified professional career coach, told HR Dive via email.
“Candidates are looking at job opportunities differently than they did before the pandemic. It’s no longer just about the work they’ll be doing, the company they’ll be joining, or the salary they’ll receive. They’re also thinking about how that job, and everything it requires of them, will fit in with the rest of their lives,” Augustine said.
Candidates are doing mental math to determine how often they will need to commute; how much time that will add to their day; and what the cost of gas, parking, transit, childcare and meals will be.
However, employers can help workers manage the RTO tax, both in offsetting direct costs and in giving back time or convenience, Augustine said.
Employers can offer pre-tax commuter benefits; transportation support such as stipends, toll reimbursements or shuttles; greater flexibility through hybrid schedules or varying start and end times; free or subsidized meals and fitness options; and childcare subsidies or on-site childcare.
“Employers may not be able to eliminate the RTO tax, but acknowledging that it exists matters. Even relatively small efforts that give employees back some combination of money, time, flexibility, or convenience can make the transition to more time in the office feel much more manageable,” Augustine said. “Ultimately, candidates are asking themselves, ‘Is what I’m getting from this opportunity worth what this job is asking of me?’”