Work From Home Vs. Office Promotion (Salary Breakdown)
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- Опубліковано 21 сер 2024
- In this video, we compare the salary breakdown between working from home and accepting an office promotion to help you decide which option pays more. We will analyze the pros and cons of each scenario to give you a clear understanding of the financial implications. Whether you are considering a remote work setup or aiming for a promotion, this salary breakdown will provide valuable insights to guide your decision.
Disclaimer: The information provided in this video is for educational purposes only and should not be considered as financial advice. - Навчання та стиль
The point stands, but I think there is a mistake in the calculation. You counted the preparation time twice to end up at the 60k difference. You can EITHER add the saved time value to the remote work scenario OR subtract the additional time from the office scenario, but NOT BOTH.
He was right, You get promoted on onsite you will get 115,000 then subtract the hours.. you will get 77k versus u work from home and get 100k plus u saved the hours which you can use elsewhere. Subtract u get 60k
Pinning this comment, you’re right. Main idea of working remotely providing more value holds true, but the DIFFERENCE would be less. Appreciate you calling this out
id add to that, that the quality of food and sleep that you get working from home adds to your overall quality of life immeasurably, working while rested and having fresh meals makes me personally much more productive and positive at work
Fully agree with this. Can’t count the amount of times I would eat out when I was in the office. Spending money on food when you’re there adds up and is a completely different expense that I forgot to mention. Quality of food definitely matters
Id argue a few things
1. The time spent not actively commuting shouldnt count, it happens either way
2. The only money you can actually subtract is the money you spend commuting that you no longer spend commuting
3. There is a definite difference between The 77/115k and the 100k in that it can be hard to actually materialize that $50 an hour outside of your day job. Often you wont actually be making that rate, so it should certainly be noted that you actually just have less money, but also discount the Time Value.
1. Agreed, only variable that’s different is commuting.
2. In this scenario commuting = 2 hours.
2 hours * 250 working days * $50/hr = $25,000
$115k (promotion) - $25,000 = 90k
This is less than your remote salary at 100k
Remote working is still at a higher value
3. You’re not going to be making $50/hour explicitly outside of work. But if people acted like they did, they would be focusing on the highest leverage activities in their life (which isn’t realistic, but something to aim for).
People are not going to be making that rate because you have to also factor in leisure.
I'd probably calculate it this way:
WFH: $100k/year
Promotion: $115k/year
For most people, it is about whether they value the $15k/year or (assuming 40hr weeks and 52 weeks) $7.21/hr more than the 2-4hrs back and forth to the office 1-4 days a week.
An economist will probably measure the marginal utility of time and/or opportunity cost of that time.
So, for people who can do a side hustle, the opportunity cost can be as high as their salary (i.e. the $50/hr figure you used in this example).
Then, it'll make sense to wfh and not take the promotion.
But yea, this is nothing new. Still enjoyed the video, though!
This is fantastic 🔥 another way of looking at it
Technically, I think you should include only commute hours. You still need to have shower and breakfast in the morning even if you work from home.
100%, that remains a constant in either scenario
showering and breakfast if you wfh... debatable... haha 🤣
@@sashofcl but if commuting time really small, this math isn’t working. In some cases there are many perks in the office that can save your money. For example, food or gym.
So commuting to the workplace is just one small part of all of this
You do those on working hours
@@777777PhilippSure, there’s nuances to this but idk anyone that gets served food and works out at their office everyday. Not speaking to the minority of companies that provide these perks. I’m speaking to the majority of companies that don’t
Guys, don’t be naive. They will enforce a return to work policy in the future or you will be laid off…and it’s legal. Working from home isn’t profitable to companies because productivity has plummeted. The vast majority of employees are being lazy, working side hustles or just not working at all on company time.
It’s already happening.
Has nothing to do with productivity and everything to do with real estate, leasing costs, and control.
You can be working remotely and getting more done compared to the person that goes to work and wastes time talking about their dog to the person beside them for 2 hours. Not all company hours are productive hours.
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