2021-08-09-Gartner-The_Cost_Implications_of_Long-Term_Remote_Work_14页_938kb

The Cost Implications of Long-Term Remote Work

Overview

Permanent shifts to remote/hybrid work affect personnel costs, including relocation pay adjustments, employee acceptance of pay cuts, and investments in infrastructure and well-being initiatives.

Key Findings

Employee Relocation Preferences

• 62% of employees considering permanent remote work would accept a pay cut tied to local cost of living.
• Most willing groups:
  • Age 30–49 years, urban residents with children and senior roles.
  • Younger employees (1.5× more likely than 50–65 year-olds).
  • Employees with children (1.3× more likely).
  • Functions: Operations, IT, Finance.
  • Industries: Financials, IT, Industrials.
  • Locations: Urban areas.

Salary Adjustment Policies

• 36% of organizations don’t adjust pay for relocations.
• Pay adjustments for higher/lower cost-of-living locations are case-by-case.
• CFOs should benchmark policies to identify cost-saving opportunities.

Remote Work Infrastructure Support

• Organizations frequently cover costs for hardware (e.g., monitors, headsets).
• Hybrid/remote employees’ needs differ: fully remote employees less likely to receive recurring cost support (e.g., internet bills).

Well-Being Initiatives

• 64% of organizations offer new well-being benefits post-COVID-19.
• Most common benefits: virtual mental health support (91%), wellness apps, and mental health tools.
• Expected costs include funding for these initiatives as remote work becomes permanent.

Recommendations

• Evaluate employee preferences to adjust compensation strategies targeting cost savings.
• Benchmark policies on infrastructure and well-being costs for policy planning.
• Budget for employee well-being initiatives and hybrid setup costs to ensure sustainability.
• Prepare for salary negotiations tied to geographic relocations.

Data Sources

• Compensation Watch Survey (Aug 2020).
• Improving Employee Engagement Survey (Aug 2020).
• Well-Being Benchmarking Survey and Remote Work Cost Poll (Nov 2020).