Money and Work From Home. Is It Worth It?

 

At least a couple of decades ago I read a book about the true hourly wages a person takes home. In his explanation, the author pointed out that the net hourly wage had to factor in some often overlooked costs. If a person was paid for 8 hours of work, but had a 2 hour commute each day, it was really a 10 hour work day. That reduced the hourly wage by 20%. For example if your hourly rate is $25/hr and you are paid for 8 hours you would receive $200 minus taxes. But you spent 10 hours including the commute, so the hourly rate dropped to $200/10 or $20/hr minus taxes.

Is there more?

But we’re not done. How about the money spent on gasoline and car maintenance for that 2 hour commute? And do you eat takeout or restaurant food rather than prepare food at home? That costs extra. Do you have to maintain a larger and more costly wardrobe for the job in order to be appropriate? More expense. Nan and I have found that we only need one car because we both work at home.

I believe this is why many people are opting for online or hybrid jobs. It may also be the reason why many employers are accepting the change if the job fits the WFH model. The employee actually may be happier working at home and keeping more of their wages, even if they miss the camaraderie of the workplace. And the employer’s office space requirement may be reduced, saving them associated costs.

 Is it all gain?

Of course there may be some trade-offs. Your utility bills may be higher if you work from home, and you are using your own toilet paper. There may be distractions that are very hard to ignore. It may be difficult to make the shift from home life to work schedule. There may be temptations to be too flexible or not as diligent with no one monitoring the work as closely. Or for the workaholics, keeping a reasonable work/life balance might be a challenge since the home and office are the same. And then there are the extroverts who start to become depressed with too much alone time. They need people time -- face to face. 

Although some may be fortunate enough to find a suitable workspace at a walking distance from home  (that doesn't require $5 coffees and expensive sandwiches), most probably won't. But think of those extra commute hours that are now all yours. How will you use the extra time? More sleep? More time with family, friends or recreation? Eased conflict getting the kids ready for, or to school? Less stress with a one minute walk to your home office? Maybe even a tax break for having a home office?

Dollars or hours?

As an aside, the author of the above mentioned book also suggested that the readers convert their purchases into hours worked for an item or experience. For example if after having subtracted taxes, gasoline etc. and come up with a true net-per- hour wage of say $16/hr (from our original $20/hr calculation above) – a sweater costing $160 including sales tax would take 10 hours of work to purchase it. He said to consider whether it would be worth 10 hours of your life to own that sweater. Maybe it would be, maybe not. It is an interesting perspective. I wonder how many hours of work it takes to buy a new car including taxes and interest? No, I don’t think I want to go there – too depressing.

The Future Of Work

 

Because Nan and I have been primarily working remotely and because I was a business owner for 27 years, I have a lot of interest in the subject of the future of work. Since the pandemic, as everyone is aware, the landscape has dramatically changed. It was like an earthquake, a volcano eruption or a hurricane hit the way we were able to conduct our working lives.

All sources that I have read agree on one thing: hybrid work is the new normal for a great many of jobs.

Of course there are many hands-on jobs that can only be performed in the traditional manner. That goes without saying. But many others are not dependent on physical location. The question becomes what is optimal for both the employer and employee. That might be two different opinions.

The self-employed and entrepreneurs have the most autonomy for making these decisions. Some jobs, by nature lend themselves to the option of remote work – primarily those that are desk-bound in some way or another. Others, which are location specific do not have that alternative choice. Some jobs may place boundaries of a different kind. Licensure or legal permits may narrow down the possibilities.

As I read through the many articles and studies that have written in the last year or so one statistic seems fairly stable. Most people with the option of WFH (work from home) still prefer to have some direct contact with others they work with. Employees are most satisfied when they have flexibility and choice.

Managers Are Stuck In Between

This has been a tough road for management who has to decide on the productivity of a hybrid arrangement, or even full time WFH. Most statistics show that productivity does not go down or even may go up slightly to significantly. What it has revealed is that what has changed is the time frame in which work is performed. Rigid nine to five schedules often will have given way to work performed during alternate times. This is a real benefit to parents and to those who work best in the early morning or late evening. It changes or eliminates commute times and may ease traffic patterns. But it often places additional stress on managers trying to maintain a cohesive work flow.

In looking back at the company we owned, a hybrid schedule could only have worked for some of my employees – those that did the “front office” work. Our outside sales force already did not spend much time in the office (non-productive), but our order fulfillment crew had to be on the premises. From my viewpoint as a sales associate/owner, in-person contact was highly necessary to build relationships, and although desirable, was not necessarily essential to maintain clients. Having sold the business eight years ago, it would be interesting to see how current technology would have changed us. The rapid growth in the online world over the last 5 years could have really had an impact.

Although it would not have changed our particular space needs, for many businesses it has. I have already heard of downsizing and office sharing from some of my current counseling clients. I could see smaller work groups centered around location, but connected to the larger entity by video, or even “always on-camera” groups, but still working from home.

I do believe that as time goes on there will be at least a partial return to the physical office not only by mandate, but also by choice as the isolation feels less appealing. We are social creatures. We need each other to thrive, and part of the way we do that is through our work relationships. Even though Nan’s and my work by definition is relational, virtual connection is still virtual. We can feel a difference. And there is a massive difference between an online versus an in-person church service. Connection is absent – you are not “known”. 

I would suggest that if your work is virtual, you find other ways to maintain live connection, perhaps opting for at least a hybrid work life and in-person church.

Finding Real Work in a Tough Economy

It is still a very difficult economy in which to find meaningful work, especially if you are recently out of college, or you’re struggling to find something in your field of choice.  I have five thoughts based on my experience, and the advice of experts, that I hope might be helpful.

At 21, fresh out of UCLA and about to get married, I scrambled to get a job.  Working at minimum wage at Pine Crest Preschool was not my idea of what I wanted to do after college, but a B.A. in History and Social Science doesn’t get you much!

• So, my first advice is ‘take anything that is remotely related to what you think you want to do.’  

And, if you can’t find a job doing that, take whatever you can get.

The reason I say this, is because I got a job I really enjoyed later on from a friend who I had worked with at that first minimum wage preschool.  Her recommendation to her new boss landed me a position I would not have known about if it weren’t for her and my willingness to take what I could get.

• So, the second thing is to connect in a meaningful way with your colleagues, and with those who have jobs in the field you would choose.  Referrals for work are the number one way people get better jobs!

• Eighty percent of available jobs are never advertised, and over half of all employees get their jobs through networking, according to BH Careers International.

• The third thought is that you must carry out an active, as opposed to a passive, job search. It is not enough to respond to leads from want ads or employment agencies. Carrying out an active search allows you to control the job search process and opens up many more job opportunities. It is estimated that only 10% of jobs are actually found from online searches.

• Have a great attitude. Dress appropriately for any job interviews. Remember to smile.

• The fourth thing is to conduct Informational interviews. Meet with someone from the firm to get more detailed information about the company itself and possibly a job lead.  This shows initiative and helps you to know if a place is where you would like to work.

• The fifth suggestion if you are a person of faith, is to pray and ask God’s help in your search. Ask Him to inspire you about what you desire to do and with whom you should talk to find out more.

Several years ago I felt a restless feeling that there was something more I wanted to do. I had just prayed about it, and then I talked to a friend at church who mentioned she had too much work to do as an adjunct professor at Fuller Seminary.  I mentioned my interest in doing more, and within a day I was called and hired to teach part time.  I believe God put it on my heart to be open to new work, and on my friend’s heart to work less. So, God answered both of our prayers! 

One more thought: Can you be an INTROVERT and have a successful JOB SEARCH? Click on the link to the left and find out!

I pray that God will bless you as you seek him for direction in your life and your work!

Jeremiah 29:11-13  "I know the plans that I have for you. This message is from the Lord. I have good plans for you. I don’t plan to hurt you. I plan to give you hope and a good future."