The COVID-19 pandemic has paved the way for a work from home revolution. The news of COVID-19 gave some people the mandate to work from home. There’s still debate, though, about whether it accelerated the trend of more and more working from home. Working from home offers numerous benefits to employees, including greater flexibility and no commute.
Once the lockdown is over, people might prefer to work from home or at a flexible office. We’ve all heard whispers about the ‘Great Resignation’ projected to explode in Australia, following its occurrence in other countries. In August 2021 alone, 4.3 million workers in the United States resigned from their jobs. COVID-19 has had a major impact on most workplaces and you’re not alone with your worries if you are considering alternate employment arrangements that accommodate the work from home flexibility. You’re not alone either as a lot of employees are now reconsidering their employment options also.
Working from home is one of many perks’ employers can offer to try and keep employees in the workforce. However, before readily agreeing to ongoing working from home arrangements, employees need to be wary of the potential hidden costs.
Why employees love the flexibility
As employers adapt their operating model from pre COVID-19 with a more flexible working arrangement, many are considering the flexibility or working from home against employee performance and operational efficiencies. As part of this evaluation employers reflect on the many reasons why employees love the flexibility of working from home. This includes the balancing of carers responsibilities, ease of school pickups, increased family time, and cost savings from travel and child care. In return for this flexibility employers have in most cases seen an increase in overall performance and improved attendance.
Working from home is one of many perks’ employers can offer to try and keep employees in the workforce. However, before readily agreeing to ongoing working from home arrangements, employees need to be wary of the potential hidden costs.
Working from Home: Financial Costs
Realestate and office expenses
Working from home can be a cost effective option for many employers. However, for employees, expenses such as computers, Wifi, electricity, heating, and air-conditioning all start adding up. During the COVID-19 work from home mandate most employees have covered the cost of their own computer, electricity, and water. Certainly, some expenses are tax deductible, and some employers have chosen to cover these costs. But ultimately, as an employee working from home is not without cost. Utility bills are likely to skyrocket. To set up a functional and enjoyable work environment, you may need to spend a little bit, such as on a desk or office chair.
Wear and tear on personal devices
If you don’t use one of the computers provided by your employer, that’s likely reducing the working life of your computer due to reasons such as wear and tear. For example, if you typically only used your personal computer out of work hours, now using it all day, every day will speed up the wear and tear.
Living space
Not everyone has ample or appropriate space to work from home. There are many different reasons why people don’t have the space to work from home. Whether it’s because of the cost of rent, the lack of internet access or they simply can’t afford to live in a suitable location, some people find themselves with no choice but to commute to work every day. – making the COVID-19 mandate challenging for some.
In the United States, the National Bureau of Economic Research found that renters working from home increased their expenditure on housing by 6.5% to 7.4% to have more office space.[1] The same study found that homeowners also spent more money on having a property with larger office space, increasing their expenditure by approximately 8.4% to 9.8%.[2] The report noted:
“For firms, managers often speak colloquially of cost savings from remote work due to reductions in office space. But this neglects the fact that remote households need more space to accommodate working from home. As a result, remote work entails a transition from firm’s financing of office space to household financing of home workspaces.”[3]
Working from Home Non-Financial Costs
Blurred boundaries between work and home
Working from home can make it difficult for many to ‘switch off’ after a day’s work, since your living space is often indistinguishable from your workspace. Prior to COVID-19, employees could more easily detach themselves from work, simply because their home was in a different physical space from their work. Work has now encroached on personal lives significantly.
The blurred boundary between work and home life has becoming taxing for some. Work-related tasks often overlap with personal tasks, which can have a negative impact on both your productivity and health. Aaron McEwan reported to news.com.au: “We found ourselves still trying to work like we are in offices but whilst doing it in homes, so productivity and performance went up but the broad-lasting impact is people are exhausted and work is inescapable.”
Getting distracted
Whilst the are some great perks to working from home, it simply isn’t for everyone. Some people find that they are more productive working from home. However, others may be distracted from being in their own space. For those that are easily distracted, reduced productivity can have ramifications, such as conflict with your employer or not meeting deadlines.
Decreased social interaction
Working from home may seem like a nice idea. But, it can leave you feeling isolated and out of touch with other people. Social interaction is important for your mental health. Therefore, if you’re working from home, it is important that somehow you still find a way to keep connected with others. This may include catching up with a colleague via a video conference or seeking other alternatives to maintain that social interaction.
Professional costs
Most promotions happen on-site through networking, being involved in business activities, and socialising. When you work from home, you can miss out on these opportunities. Think – if you’re at home, you may be less visible to your boss than your colleagues in the workplace. When it comes time to promote someone, your boss may have built a stronger connection with colleagues that they see each day in the workplace.
