Findings from a recent Discovery Bank survey show that South Africans could potentially save a substantial amount each month by embracing a remote work model.
The financial service group's latest SpendTrend24 report sheds light on the spending habits of consumers, drawing insights from data provided by Discovery Insure.
One noteworthy trend highlighted in the report is the increase in post-pandemic travel among clients, particularly in driving habits. Despite a 10% reduction in the number of trips made, clients are covering 40% more distance on average each month compared to the previous year.
This shift is attributed to lifestyle changes influenced by the increased return to office movement in South Africa.
This trend is further corroborated by various reports pointing to strong support from corporate South Africa for a return to in-person work. A survey conducted by OfferZen demonstrates a gradual return to office-based work policies, although remote work remains prevalent.
Remote work options have become increasingly sought-after among employees, with many considering it a primary non-monetary benefit in job searches.
Analysis of Discovery Bank's data indicates that clients typically commute around 1,690km per month, emphasizing the potential savings achievable through remote work arrangements.
To illustrate the financial impact, we examined potential savings on fuel costs for the average South African in April 2024, focusing on popular car models.
With the current fuel prices, transitioning to a remote work setup could result in significant monthly savings, as outlined below.
Type | Car | Consumption per 100km | Cost per 100km | Monthly Saving |
Crossover | Toyota Corolla Cross | 6.8L | R171 | R2 890 |
SUV | Toyota Fortuner | 7.2L* | R163 | R2 755 |
Bakkie | Toyota Hilux | 7.1L* | R160 | R2 704 |
Hatchback | VW Polo Vivo | 5.7L | R143 | R2 415 |
Sedan | VW Polo Sedan | 6.5L | R163 | R2 755 |
(*Diesel engines)
These potential savings, coupled with the time saved from commuting, contribute to the growing preference for remote work arrangements among employees.
Surveys by PwC and OfferZen indicate a strong inclination towards remote work, particularly among younger generations, with a significant portion willing to leave their jobs if remote work options are not provided.
As per the findings of the OfferZen survey, 52.3% of participants expressed their willingness to leave their current jobs if compelled to return to the office by their employers.
This statistic is particularly alarming given the current trend of companies urging employees to resume in-person interactions in the workplace.
From 2023 to 2024, there has been a noticeable shift towards office-based work policies, albeit still constituting a minority of overall practices.
The adoption of office-based work policies increased from 7.9% in 2023 to 9.6% in 2024 among the surveyed employees.
In contrast, the prevalence of remote work saw a significant decline, dropping from 56.2% to 40.8%.
A noteworthy development has been the ascendancy of the hybrid model, which surged to 49.6% compared to 36% in 2023, emerging as the predominant work policy currently in practice.
The hybrid work model not only addresses employees' preferences but also continues to yield savings in fuel costs.
For instance, individuals on a hybrid schedule could save up to R1,314 compared to fully remote workers.
A shift towards more person-centric and purpose-driven practices is essential for attracting and retaining talent in the future of work.
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