Would You Take a 20% Pay Cut To Keep Working From Home? 3 Questions To Ask Yourself
Written by
Laura Bogart
Edited by
Kristen Mae
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Back-to-the-office mandates are becoming increasingly common these days, spanning both government and private industries. As employees accustomed to working in the comfort and privacy of their homes face the prospect of returning to long commutes (certainly longer than the walk from the bedroom to the home office), as well as the noise and stimulation of an office, many are wondering whether they should take their chances in a potentially difficult job market.
Some of these workers are even considering whether a pay cut — as steep as 20% — would be worth their while if it meant being able to keep working fully remote. At first glance, the decision may seem like a no-brainer, either way. Of course, it’s worth it to preserve your peace of mind. Or, of course, it’s not worth it if it means taking a massive hit to your income.
If you’ve been working remotely and now face the prospect of returning to the office, you may be weighing similar options. But before you decide, take a step back and consider three questions.
What Are the “Hidden Expenses” of Returning to the Office?
When advising a reader confronted with this very issue, Heather and Douglas Boneparth, co-authors of The Joint Account, suggested comparing the potential salary cut to the hidden expenses they avoided by working remotely. These include lunches, gas, parking fees, public transportation costs, and even general wear and tear on your car.
That doesn’t even factor in childcare costs. The Boneparths cited a 2023 report from Child Care Aware, which found that childcare costs can consume anywhere from 10% to 32% of a family’s median household income. Assuming their reader would need to pay more for early drop-offs and late pick-ups — along with the additional costs of extracurricular activities to keep their kiddo occupied after school — their household finances could take a bigger hit than anticipated.
The Boneparths encouraged their reader to ask themselves the following question: “Will your new five-day commuting and childcare costs make that 20% pay cut almost a wash to your bottom line?”
Could Working Remotely Stall Your Career Trajectory?
If you land a new gig at a company where everyone is remote and has equal opportunities to network with leadership and connect with one another, that’s one thing. However, working for a company where remote work is allowed — but not the norm — can lead to a lack of visibility that may hurt your career.
The Boneparths advised their reader to think of it this way: Their 20% pay cut may come out in the wash against the reduced expenses that come with working from home, but they might still be kneecapping themselves in terms of future earning power by limiting face-to-face connection with leadership and coworkers. If they’re not in the office to grab a coffee with that team member who will later lead a high-profile project, they’re not in a position to join that team and participate in the glory — and, potentially, the raise.
In companies where remote work is tolerated but not embraced, you might not be visible enough to gain mentorship from colleagues and leadership, which could keep you stuck in the same income bracket for longer than you’d like.
Is Working From Home Pleasurable, or Just Convenient?
If you’re feeling ho-hum about your current company or see little room for growth, you might end up stalled out regardless of whether you’re spinning your wheels in the office or at home. In that case, saving the commute and childcare expenses while starting fresh at a new company with new opportunities might be just what you need.
However, if you genuinely enjoy your current role and are on a promotion track, it might be worth it to step out of your PJs and back into your suit. You don’t want to jettison all the career growth you’ve achieved just because you prefer working from home.
The Boneparths also urged their reader to consider whether they truly preferred working remotely, or if they were simply drawn to the convenience. Would working remotely feel isolating, or would it allow them more time to put energy into things that filled their cups physically and emotionally? Answering this question honestly can help make the decision clearer.
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