The Future of Teleworking in Europe: An Insightful Analysis

The emergence of  teleworking  has fundamentally transformed the organization of the labor market in Europe. Initially a necessity triggered by the COVID-19 pandemic, teleworking is now recognized as a  benefit  that enhances time flexibility and plays a critical role in  attracting and retaining talent . As normalcy returns and companies reopen offices, the perception of remote work has shifted from an obligation to an asset.

Within this optimized framework, a pressing question has arisen: How much of a salary would employees be willing to sacrifice to maintain the option of teleworking? The  European Central Bank (ECB)  conducted a survey to delve into this very question, revealing striking insights about European workers’ attitudes towards salary adjustments in exchange for the flexibility of working from home.

Nor for all the money in the world. According to the latest findings from the Consumer Expectations Survey (CES), a staggering  70%  of European workers are not willing to forfeit any portion of their salary for teleworking privileges.

In contrast,  13%  of respondents indicated they would accept a salary reduction of  1% to 5% , while only  8%  would concede a cut of  6% to 10% . This is particularly valuable information for companies as it quantifies the perceived worth of teleworking, particularly when seen as part of an  emotional salary  package.

Telecommuting
Telecommuting
Percentage of workers who would accept a salary cut and cutting percentage

More and more teleworking… but hybrid. Data from  Eurostat  and the  Active Population Survey  of early 2025 reveals that teleworking levels in both European and national contexts remain elevated, surpassing pre-pandemic levels recorded in 2019.

This indicates an increasing number of workers embracing the option of remote work. While before 2019, full remote work was the norm, hybrid work is now emerging as the preferred model, consisting of scheduled in-office days alongside telework days. This hybrid model also influences the salary reduction employees are willing to accept to keep teleworking.

More teleworking, greater sacrifice. The ECB data indicates that the most common arrangement is  working two to three days a week  from home, for which employees would accept an average salary cut of  2.6% .

Interestingly, the more teleworking days offered, the more willing employees are to sacrifice their salaries. An employee undertaking a full workweek from home would consider a  4.6%  reduction, while someone who teleworks just one day a week might only entertain a  1.6%  cut.

Teleworking percentage and cuts
Teleworking percentage and cuts

The return to the office increases its pressure. European companies exert less pressure on their employees to return to the office compared to  U.S. companies , which can be seen in the salary cuts employees are generally willing to accept.

In a study conducted by Stanford and Chicago University over five years, the average salary reduction accepted for remote work in the U.S. is around  7% . This stark contrast suggests that in Europe, teleworking is increasingly viewed not as an exceptional privilege, but rather as a standard element of many sectors’ working conditions.

The problem of eliminating teleworking. Given these revelations, some companies may contemplate eliminating teleworking altogether, or exploiting employee attachment to the model to enforce salary reductions. However, such a strategy—appearing beneficial in the short term—might backfire in the medium to long term.

Telecommuting has evolved into an essential human resources tool for attracting and retaining a dwindling pool of  skilled talent . High-profile instances of employee resignations and internal strife over mandatory office returns, as seen with companies like  Amazon  and  Holaluz , exemplify this issue.

However, offering any teleworking option minimizes vacancies since a wider pool of candidates is drawn towards companies that embrace these flexible models. Furthermore, employees currently engaged in teleworking report higher levels of job satisfaction.

The understanding and shaping of teleworking policies can thus largely dictate the future landscape of employment in Europe, as businesses strive to adapt to changing worker expectations in an increasingly remote-friendly world.

Image: Unspash (Coworking macherzentrum toggenburg)



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