SINGAPORE: A new study has found that hybrid working could offer significant financial benefits for office workers.
It revealed that a 27-year-old Singapore office worker, working five days a week in Singapore’s Central Business District, could save about S$3,900 a year by working closer to home for two days a week.
The study, conducted by hybrid working solutions provider International Workplace Group (IWG) and consultancy Development Economics, surveyed over 2,000 workers and analysed public transport data.
It explored various hybrid working scenarios, with a particular focus on the option of working closer to home.
The findings showed that 76% of workers saved money each month by working near their homes, including lower costs for commuting, public transport, fuel, parking, and daily expenses like coffee and meals.
In Singapore, where the cost of living is a growing concern despite government efforts to provide financial support, the savings from working closer to home are becoming increasingly important.
These savings could be especially beneficial for younger workers who are saving for goals like a home down payment.
Globally, the study also highlighted that US office workers working in a hybrid model could save up to US$30,332 (approximately S$39,500) per year, while those in the UK could save up to £13,188 (around S$22,700).
For office workers who commute to an office, daily expenses for items like lunch (74%), snacks (65%), and coffee (50%) can add up quickly.
The study found that employees spend around US$48.40 (approximately S$63) daily on office-based work, which adds up to around US$10,067 (approximately S$13,100) annually for those working four days a week.
When it comes to saving money, the hybrid work model is a practical choice for Singapore workers. Despite the 2023 fare increase, Singapore’s public transport remains affordable compared to other major cities like Paris and London.
The city’s transport system is also ranked among the top ten globally and second-best in Asia for its cost and accessibility.
In addition to financial savings, hybrid working improves work-life balance. According to the study, 84% said hybrid working has helped them better meet their financial goals.
Notably, 38% of respondents are using their savings to build a rainy-day fund, 37% are using their savings for vacations, and 35% are using these savings to pay off credit card debt in full.
In addition, 84% of workers have experienced a better work-life balance due to reduced commuting time. Meanwhile, 40% use the extra time for relaxation or hobbies, while others dedicate it to activities supporting their physical (38%) and mental health (34%).
Professor Nicholas Bloom of Stanford University expects 30-40% of workers to stick with hybrid work long-term. Research from IWG and Arup suggests that office workers in commuter towns might increase by up to 60% as hybrid working becomes a norm among businesses.
Given this trend, it’s no surprise that 60% of workers want to work within 15 minutes of their homes.
Mark Dixon, CEO of International Workplace Group, believes that long commutes will soon be “relegated to the annals of history.”
He noted, “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.”
IWG has launched the IWG Hybrid Working Calculator to help office workers estimate their potential savings from working closer to home. /TISG
Read also: Employees can now request flexible work arrangements starting December 2024
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