As return-to-office policies tighten in many tech companies, a new study reveals that job applicants are willing to accept significantly lower salaries for remote or hybrid jobs.
Conducted by researchers from Harvard, Brown, and UCLA, the study surveyed nearly 1,400 workers in the United States, primarily software engineers and product managers, who received at least two job offers between May 2023 and December 2024.
The findings highlight that those who choose remote positions tend to accept a 25% lower salary compared to offers that require in-office presence.
Up to 25% of salary in exchange for working from home
For example, a candidate who receives a $200,000 offer for an office position might accept a remote offer of $150,000, indicating a clear preference for work flexibility, according to the study’s co-author, Ricardo Pérez-Truglia, an economics professor at UCLA.
The study also emphasizes that working in the office involves additional costs. According to the report, the expense associated with going to the office is equivalent to the monthly food cost for two people in the U.S., with employees spending an average of $51 daily on transportation and other needs related to in-person work.
In addition, rental and purchase prices of properties in urban areas have reached record levels, further increasing the cost of living for workers who must commute to their workplaces.
The research shows that 66% of employees returning to the office five days a week face these additional expenses. While companies with good ratings on Glassdoor are a factor to consider, the possibility of working remotely remains a stronger incentive to accept job offers with reduced salaries.