Report highlights reduced costs of working closer to home

'Before long, the concept of a long daily commute will be relegated to the annals of history'

Report highlights reduced costs of working closer to home

A new report from the International Workplace Group has found that working closer to home for four days a week is delivering significant financial benefits for employees amid the high costs of working at the head office.

According to the report, 84% of employees said reduced commuting has put them in a better position to meet their financial goals. In fact, they are able to:

  • add savings to their rainy-day fund (38%)
  • save for holidays (37%)
  • put aside savings for paying off credit card debts in full (35%)

Overall, the report found that employees in the United States can save $30,332, while those in the United Kingdom can save £13,188 annually by working closer to home.

Beyond financial gains, 84% of employees also said spending less time commuting has a positive impact on their work-life balance, particularly:

  • Gaining extra time to relax or take part in hobbies (40%)
  • Spending more time on activities that support their physical health (38%)
  • Spending more time on activities that support their mental health (34%)

Expensive long commutes

The findings come amid long commute times that are costly for many employees. According to the report, employees are incurring $48.40 daily or about $10,067 annually, for working four days a week at their headquarters.

Among the biggest contributors to these expenses are lunch (74%), snacks (60%), as well as coffee (50%).

Mark Dixon, chief executive officer of IWG, said the findings underscore the significant savings that hybrid workers can invest in other aspects of their lives.

"Before long, the concept of a long daily commute will be relegated to the annals of history," Dixon said in a statement.

"The idea that every morning, office workers will wake early, jump into polluting cars or overcrowded trains, and travel many miles to their place of work will, very soon, be a crazy thing people only did in the past."