Aussie worker takes 20 per cent pay cut to work from home

Marketing co-ordinator Jade Reece, 26, who recently took a 20 per cent pay cut to work fully remotely at her home in Yarrabilba, Queensland.

Young Australian workers are leading the push towards employees working from home (WFH), with many saying they would take a pay cut in order to WFH full-time.

A third of Australian workers surveyed by software research site Capterra said they would take a pay cut in order to continue working fully remotely from home.

The main reason survey respondents said they wanted to take this deal was to achieve greater work-life balance.

The recent survey also found 78 per cent of Generation Z (aged 12-27) and 75 per cent of Millennials (aged 28-43) are feeling the downward pressure of the cost of living more than older generations, particularly when it comes to costs related to working on-site.

These work-related costs include money spent on childcare, utilities and commuting, as well as the time spent on these activities.

“The savings on cost, time and personal flexibility can outweigh the opportunity loss from a pay cut, and companies can also offer perks such as extra annual leave to compensate,” Capterra analyst Laura Burgess said.

“If companies expect employees to be on-site more often, support with work-related costs and flexible arrangements is crucial for employee retention and satisfaction.”

Capterra analyst Laura Burgess says companies need to do more to entice workers on site. Picture: Supplied.

Marketing co-ordinator Jade Reece, 26, recently took a 20 per cent pay cut to work fully remotely at her home in Yarrabilba, Queensland.

“There are quite a few reasons it appealed to me, including the ability to work even when sick or when my child is sick,” Ms Reece said.

“The lack of commute and removing that cost from my weekly budget.

“I think with the cost of living increasing, a lot of people are looking to increase their wages or decrease their costs; and it’s often easier to decrease their costs by working from home.”

With the cost of living continuing to rise for Australians, Ms Reece said young people like her are moving further out of the capital cities in order to afford rent, which is also contributing to their desire for fully remote work.

Marketing co-ordinator Jade Reece, 26, who recently took a 20 per cent pay cut to work fully remotely at her home in Yarrabilba, Queensland. Picture: Supplied.

Ms Reece said taking the pay cut means she now has less work-related costs to consider and ultimately she has more time in her day for tasks and hobbies outside of work.

“My commute used to be a one-and-a-half hour trip each way, which means I now have an extra three hours in my day,” she said.

“Now I have more time with my family, more flexibility and less burnout.”

If working from home was not offered on a full-time basis, Ms Reece said she would have been happy to work in a hybrid style, but said she would have been less willing to take a pay cut.

Ms Reece said she now has a total of 15 extra hours in her week, saying her long term goal has never been “to just be an employee from 9 to 5”.

“I want to build something more for myself, and reach all my goals.

“Those extra hours are the difference between me being able to achieve those goals without losing my work-life balance as much.

“I finally get a chance to work towards my goals in business as well as working towards becoming a published author.”

The survey consulted with almost 250 employees across Australia, from a total of 2,716 across 11 countries.

Compared to other countries around the world, including the US and the UK, the findings show Australians are two per cent lower than the global average of 36 per cent, of the number of employees who would willingly take a pay cut in order to WFH full-time.

Originally published as Aussie worker takes 20 per cent pay cut to work from home