The cost of returning to the office, dubbed the RTO tax, is estimated to be around $6,736 per year for employees, according to an analysis by Resume.io. This amount is equivalent to 9.3% of a typical salary.
For parents who need to pay for childcare while they’re in the office, the estimated annual cost jumps to $16,538. Resume.io based its analysis on responses from a Pollfish survey of 1,000 full-time U.S. employees who work in the office at least one day per week.
The survey found that most of the expense comes from commuting, with workers spending about $2,751 annually on getting to the office. More than half of respondents said their costs have risen in the past year, and 19% said costs have gone up significantly.
Employees also lose around 23 full eight-hour workdays to their commute each year and about 17 days in preparing for the office, including showering, getting dressed, and making food to bring in.
These costs can be important factors when candidates assess which jobs to accept, according to Amanda Augustine, resident career expert at Resume.io. Augustine said that candidates are looking at job opportunities differently than they did before the pandemic.
Candidates are doing mental math to determine how often they will need to commute and what the cost of gas, parking, transit, childcare, and meals will be. Employers can help workers manage the RTO tax by offering pre-tax commuter benefits, transportation support, and greater flexibility through hybrid schedules.
Augustine noted that employers may not be able to eliminate the RTO tax, but acknowledging that it exists is important. Even small efforts that give employees back some combination of money, time, flexibility, or convenience can make the transition to more time in the office feel more manageable.
Augustine said that candidates are asking themselves if what they’re getting from a job opportunity is worth what the job is asking of them. By offering benefits and flexibility, employers can help make the RTO tax more manageable for their employees, as they strive to balance the costs and benefits of a job.
Resume.io’s analysis highlights the need for employers to consider the RTO tax when designing their benefits and work arrangements. They can help reduce the financial burden on employees by providing support for commuting and childcare costs. It is essential for employers to be aware of the RTO tax and its impact on their employees’ lives.
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