Rising Energy Costs Likely To Lead To A Fall In Homeworking
New research conducted by Instantprint has found that almost half of workers are more likely to work at the office as a result of the increased cost of heating their homes, thereby reducing the amount of homeworking they do. If correct, this could reduce much of the increase in the level homeworking that has occurred during the Covid-19 pandemic
The new survey, in which 900 hybrid workers were interviewed, found that:-
- Whilst office working has become more attractive for 85% of workers due to rising energy prices, 45% of workers state that they are more likely to reduce their level of homeworking and work more from their employers premises. This is despite the increased costs involved in commuting, and the fact that some employers have reduced office space and may therefore encounter problems in accommodating a higher proportion of staff working at the office. This means that some workers will not be able to reduce the amount of homeworking they do as much as they would like
- 73% of workers stated that they felt that employers in general were not providing sufficient support in relation to increased energy costs, whilst 24% stated their own employer could be helping more with the cost of living crisis. In terms of what support employers could be providing, 45% of workers stated that they wanted a pay rise. Other suggestions included incentives for car sharing (33%), and providing hot drinks (37%) and food (23%).
MoneySuperMarket Survey
A separate survey conducted by MoneySuperMarket, in which 2000 workers were interviewed, found that 14% plan to reduce their level of homeworking and work more from their employers premises. The group with the highest number of workers who plan to reduce homeworking most are 18-24 year olds (23%)
Reaction
The Senior Adviser (Performance and Reward) at the Chartered Institute of Personnel and Development (CIPD), Charles Cotton, states that: "Despite the cost increases already endured by many employers, the CIPD is still encouraging HR professionals to help their organisations explore what steps they can take to assist their people over this difficult period. Research by the Joseph Rowntree Foundation finds that as a proportion of their budget, low-waged households spend a lot of their earnings on commuting, food and leisure, childcare, housing and utilities (see the chart below). So, employers should focus in these areas."
The head of policy and public affairs at National Energy Action, Matt Copeland, points out that: "The massive energy bill hikes....are going to push workers to think about how they can keep costs down. It might be that they would rather use their office’s energy rather than their own." Senior personal finance analyst at Hargreaves Lansdown, Sarah Coles, adds: "There’s a point when energy bills are.....so high that it would be cheaper to commute to work than heat your home during the day, and for some people it will be enough to prompt a return to work."
Cost of Living Crisis Making Retirement Less Affordable
A new survey by My Pension Expert, in which 1254 people aged 40 and over were canvassed, has found that 37% feel that the cost of living crisis has made retirement at any point in the foreseeable future unaffordable.
Moreover, 7% stated that having already retired, they had now abandoned that retirement and returned to work to boost their savings to make retirement more affordable
Commenting upon the findings, the executive chairman of My Pension Expert, Andrew Megson, stated: "Even in the best of circumstances, the prospect of losing a steady source of income can be daunting for those entering retirement. However, with the cost-of-living crisis worsening, the disheartening truth is clearly that many are having to reconsider their retirement plans despite decades of saving."
