Cost of living: 75% of employees say work-related costs have increased in Australia within the last year

Whether employees work remotely or are in the office, they inevitably experience work expenses related to commuting, child care, or utilities. Given that the cost of living is high, what can companies do to support employees with these work-related expenses?

The days of working from home full-time look to be ending for employees in Australia as many companies continue to implement mandatory return-to-office policies. However, heading back to the office comes at a price, especially with the rising cost of living adding to the general financial burden some employees are experiencing. Paying for the commute, suitable office attire and lunch expenses likely contribute to the reluctance of some individuals to return to working on-site full-time. 

Those who continue to work hybrid and remotely will also face expenses related to home internet costs or energy consumption on gas and electricity. But is financial support available to encourage employees to return to the office or boost morale for those working from home? Companies can look into optimisations relating to payroll, subsidies, or bonuses, or introduce non-monetary benefits to help employees with the financial burden. 

Capterra surveyed 248 employees in Australia to find out how costs have increased, what they think employers should cover, and what companies are actually doing to support their staff with work-related expenses. The same survey was conducted in 10 other countries internationally, with 2,716 respondents in total. We will compare the Australian results with the global averages where relevant. The full methodology is at the bottom of the page.

Groceries, petrol and utilities: the personal expenditures most Australians have seen increase

Australia is one of the nations hit hardest by the cost of living crisis. The Cost of Living Pressure Gauge, devised by Finder, measures the financial burden on Australian households. As of March 2024, the gauge sits in the extreme range at 78%, and according to Finder's Consumer Sentiment Tracker, 76% of Australians feel some level of stress about their finances. 

Capterra’s 2024 Cost of Work survey asked participants whether their personal expenditure costs have increased, stayed the same, or decreased during the last 12 months. Given the recent Senate inquiry into some household name supermarkets allegedly price gouging, it is unsurprising that grocery prices were the area of personal spending that Australians have seen increase the most (94%), higher than the global average of 83%. 

This was followed by utilities, such as electricity, gas and water (79%), and petrol (76%), again higher than the global averages of 70% and 56%.

As the return to office push continues to gather pace in Australia, employees are likely to face costs related to working from the office, such as commute and parking expenses and spending money on meals, snacks, and beverages. In a competitive job market, offering perks like commuter benefits or office expense reimbursements can make a company more attractive to potential hires. It enhances the overall benefits package and can be a deciding factor for candidates when considering job offers.

Most employees have seen work-related costs increase in the last 12 months

Higher grocery and petrol costs can contribute to increased financial strain for employees, especially if their budgets are already tight. According to 75% of Australian survey takers, the costs related to their current job (child care, utilities, commuting, etc.) have increased within the last year, again higher than the global average of 60%.

The majority of employees (71%) said their salaries have not kept pace with the amount of money they spend on doing their jobs, compared to 29% who said their salaries have kept in line with their work expenses. Whilst it’s well known that there are costs associated with working on-site, which we cover in the next section, working from home can also entail hidden costs. 

These can include higher utility bills due to electricity, heating, and internet usage or costs related to creating a home office setup with the necessary equipment, such as a desk and monitor. However, these costs vary depending on individual circumstances and job requirements.

Work-related spending for onsite and hybrid employees is mostly on petrol and clothes

Employees who work either onsite or hybrid said that when it comes to commuting costs, they spend the most on petrol (49%), followed by public transportation (28%). Most Australian survey-takers (65%) live in suburban areas —compared to 30% who live in cities— meaning it is likely that many respondents have to travel to a nearby city to get to work. 

It is also worth noting that 5% of respondents live rurally. These employees are likely accustomed to remote work arrangements that eliminate or reduce travel expenses and enable other benefits, such as flexible working. 

Results indicate that only 12% of Australians live less than 5 kilometres from their workplace, lower than the global average of 21%. Commuting costs will inevitably add up quicker the further a worker travels. Not all employees have the same financial resources or live in areas with affordable transportation options. By helping to cover these costs, companies promote fairness and avoid losing out on talented individuals purely due to office location.

Transitioning back to working from the office can also disrupt other benefits, such as less commuting time and a better work-life balance. The latter is an element that was rated as seven out of ten in importance for employees at their current job in Capterra's 2024 State of Collaboration and Productivity Survey.

Regarding other incidental costs employees spend to work onsite at their company, professional attire or uniform was the most selected answer (44%). Some workplaces have strict uniform requirements, meaning employees must invest in professional attire that meets these dress code standards, including suits and company-branded clothing. 

Employees working remotely for an extended period may need to update their professional wardrobe when returning to the office. So, while remote employees have additional costs, such as utilities and home office equipment, they can save money on transportation and clothing.

Work-related costs that employees think companies should cover 

Contributing financially to work-related costs for employees, whether they are working on-site or remotely ensures fairness and equity among workers. But, what costs do employees think their companies should cover for remote working or on-site workers? 

Survey takers said supplying a computer (77%), office equipment (67%) and office supplies (65%) were what companies should be responsible for paying the most for remote workers. Interestingly, respondents think home internet costs should be shared between employees and their companies (44%). Whilst subsidising internet costs for remote workers isn't commonly heard of, companies may want to consider it as a valuable investment as it shows support for the remote work environment and can factor into employee productivity.

When it comes to onsite work-related costs, employees most believe companies should be responsible for the cost of required clothing and uniforms (74%) followed by parking (66%). Nearly half of survey takers believe employees should pay for public transportation (45%) and petrol (44%).

In conclusion

Whether an employee works from home or onsite, experiencing work-related costs can be a financial burden, especially in an age where the cost of living is high. Companies can take various steps to reduce the financial strain on employees by offering subsidies for public transport passes or incentives for car sharing. Financial wellness programs or workshops can help employees manage their finances, including budgeting for essential expenses like utility bills. Negotiating discounts or partnerships with local businesses can also provide employees with savings on essential goods and services such as groceries and eating out. 

Supporting workers in managing the cost of living and work expenses is important for employee well-being, and workers are more likely to stay with companies that demonstrate care and concern. It also demonstrates social responsibility and ethical business practices, which are positive for the company's brand image. This can help attract customers or investors who value socially responsible practices.