Remote workers may have sacrificed up to $10k due to the pandemic

Managing to remain employed during the pandemic was no small feat for employees. Unfortunately, it didn’t keep them from losing out on thousands of dollars.

Employees are working to exhaustion during the pandemic: 56% of remote workers reported working extra hours, 50% volunteered for extra projects and responsibilities and 29% worked so hard they burned out, according to a recent report by BambooHR, a cloud-hosted software provider. However, the average remote worker estimates a financial loss of more than $9,800 in promotions that were delayed or denied during the last year.

“The pandemic hit and financially no one knew what was coming next,” says Cassie Whitlock, head of HR at BambooHR. “Many organizations had to do layoffs and had to do cutbacks — no one was intending ill outcomes, but at the end of the day, [they] were trying to preserve jobs.”

Read more: More work, less pay: unpaid overtime is on the rise

The financial repercussions don’t stop there. Workers aren’t just losing out on money due to company-wide freezes on promotions and raises. Unpaid overtime is up across the board for employees in all sectors — and it's costing them up to $5,626 a year, according to a study conducted by Self Financial, a fintech startup for building credit and savings.

Certain companies, including BambooHR, were able to retroactively pay employees for the pay raises they were scheduled for, according to Whitlock. But many industries weren’t as fortunate, leaving employers scrambling to find ways to bridge the compensation gap. If they don’t, employees are prepared to quit.

“We're seeing really tight pressures in the labor market,” Whitlock says. “So even if [employers] can’t afford it, they’re looking at what they need to do financially to retain talent because the market has gotten so hot so quickly.”

Over half of employees are planning on getting a new job this year, up from 35% last year, according to a report by Achievers Workforce Institute. Much of it has to do with a lack of compensation and a steep decline in their well-being thanks to an uptick in workplace stressors.

Read more: 4 signs your employees are thinking about quitting

Employers shouldn’t panic yet, according to Whitlock. More money isn’t the only way to keep employees from putting in their two weeks — in fact, 64% of full-time employed adults would choose a company with a less stressful work environment over a 10% higher salary, according to research from the Lincoln Financial Group. This spells good news for companies who can’t afford to issue pay raises but also can’t afford to lose their employee base.

Along with offering flexibility, Whitlock urges companies to check-in on employees frequently by asking them how their day is going and how to better help them. Taking care of their emotional needs lets employees know they’re valued and could keep them satiated until a compensation plan is made possible.

“How are we ensuring that we make time for human connection?” Whitlock says. “‘That can be an overlooked component that is very important.”