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American Focus > Blog > Economy > Many workers would take a pay cut to work from home
Economy

Many workers would take a pay cut to work from home

Last updated: February 7, 2025 9:19 pm
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Many workers would take a pay cut to work from home
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The shift to remote work has become a prevalent trend in the workforce, with many employees valuing the flexibility it offers. Studies have shown that a significant number of workers would even be willing to take a pay cut in order to work remotely, even on a part-time basis. The Covid-19 pandemic played a major role in accelerating the adoption of remote work, with many individuals experiencing telework for the first time in their careers. According to Pew Research Center, employees cite work-life balance as the biggest perceived benefit of remote work.

Research has quantified the financial value that workers place on telework. A recent study by researchers at Harvard University, Johns Hopkins University, and the University of Illinois at Urbana-Champaign found that about 40% of workers would accept a pay cut of at least 5% to keep their remote job. Additionally, 9% of workers would be willing to trade at least 20% of their salaries to preserve telework.

Stanford University economics professor Nick Bloom has collected data that suggests the average worker equates remote work to about an 8% raise. Bloom noted that this figure has remained stable over time. A National Bureau of Economic Research working paper also found that workers in the technology field would accept an average 25% pay cut for a job that offers fully or partially remote work.

While remote work may not be preferred by all Americans, it remains an attractive feature for many. Employers have also benefited from remote work arrangements, with potential cost savings on real estate and the ability to hire candidates from across the country. Remote work can also lead to reduced turnover rates, saving on expenses related to hiring, recruitment, and training.

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Despite some companies implementing return-to-office mandates, the trend of remote work seems to be holding steady. The number of paid days worked from home during the workweek has remained consistent over the past two years, at between 25% and 30%. This shift towards remote work has not only provided benefits to employees but has also proven to be a profitable arrangement for businesses.

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