Lisa, Here Are Your Articles for Wednesday, July 08, 2020
Is this email not displaying correctly?
View it in your browser .
Website Services Tax Tools Financial Tools Resources Referrals
Share Save

Working at Home — the New Reality

 

Before the pandemic, about half of American workers were working from home — more than double the fraction who worked from home at least occasionally in 2017-18. While some jobs just can't be done at home, the pandemic accelerated the trend to telecommuting, and the change may be permanent.

If our new work-from-home culture sticks, the pandemic will have dramatically accelerated it. Already, nearly one in five chief financial officers surveyed say they plan to keep at least 20% of their workforce working remotely to cut costs.

Although telecommuting has been slower to take hold than many predicted when remote work technology first emerged, it's probably due to our ingrained work culture as well as employers' lack of interest in investing in the technology and management practices necessary to operate a tele-workforce.

There are pros and cons to more telecommuting. On the plus side:

  • Workers tend to prefer working from home.
  • Telecommuting reduces air pollution and office costs.
  • Telecommuting helps people balance work and family roles.
  • Many workers are more productive when telecommuting.

The downside includes:

  • Managing a telecommuting staff can be difficult.
  • Professional isolation can have negative effects on well-being and career development.
  • The effects on productivity over the long term and in a scaled-up system are uncertain.

Those who can telecommute tend to be higher-paid professionals. Just under half of working Americans in the top 25% of the earnings distribution did some paid work from home in 2017 and 2018, compared with 4% in the bottom quartile. About a third of people in the top quartile worked from home at least once a month, the equivalent number from the bottom quartile was too small a sample to meet the reporting standards of the Bureau of Labor Statistics.

But telecommuting skyrocketed this month as many workers across the country were compelled to stay home, though disparities remain. Higher-income workers are much more likely to be working from home during the pandemic and much less likely to be unable to work at all, which has been the case for lower-income workers.

Among all possible employee-friendly alternatives, working from home has been the most valued. The average applicant is willing to take an 8% hourly wage cut to work from home, according to a study from 2017.

The pandemic has forced more people to learn how to use remote technology, a shift that's changing our habits. The question: Will it last?

It's clear that the pandemic has changed our lives in many ways, from how we walk outside to how we work. When medical professionals get a leg up on this virus and we turn the corner, will everything just go back to the way it was?

The number of remote job postings on LinkedIn has increased 13% since the beginning of March 2020. And economists think this will be a lasting change. More employers are looking to hire remote workers on a permanent basis rather than just offering working from home as a perk or something nice to do once in a while. Practically overnight, it has become standard operating procedure; benefits to companies include cost reductions in operations and utilities.

Obviously, not every job can be remote, but a major increase in telecommuting may change the template for the workforce as a whole. Both employers and employees should prepare themselves for the change.

 
Share Save

Your Comments

McCullough Rossi & Company, Ltd.
McCullough Rossi & Company, Ltd.
Trusted Accountants. Confident Advisors.
2300 Barrington Road, Suite 260
Hoffman Estates, IL 60169-2034
Office: (847) 843-3919
info@mrcltd.com
Follow Me on Twitter
Connect with me on LinkedIn
Saved Articles
Comments and Feedback
Refer A Friend
Your Privacy
Our firm provides the information in this e-newsletter for general guidance only, and does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisers. Before making any decision or taking any action, you should consult a professional adviser who has been provided with all pertinent facts relevant to your particular situation. Tax articles in this e-newsletter are not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding accuracy-related penalties that may be imposed on the taxpayer. The information is provided "as is," with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.
Powered by
Copyright © IndustryNewsletters All rights reserved.

This email was sent to: lisa@bigcitybrandco.com

Mailing address: 2300 Barrington Road Suite 260, Hoffman Estates, IL 60169-2034