Remote Worker Stipends

Written by Nathaniel Pool | May 26, 2021 2:58:51 PM

There's no arguing that COVID has changed the global business landscape. The onset of commercialized internet service in the mid-90s started the telecommuting movement. It didn't really gain a huge head of steam, as it served as more of a luxury than a necessity. A majority of companies weren't ready to adopt such an outlandish philosophy. But when COVID-19 forced companies all over the world to send their employees home to work virtually, remote work had a big moment.

The global pandemic became the mother of invention and innovation. Remote working became the new norm and ZOOM the crux to the outside world. As cities, counties and States implemented longer-than-expected quarantine restrictions, many corporations were forced to make the choice of either trying to sub-lease their vacant spaces or sell off their empty buildings. Unfortunately, too many were forced into shuttering their entire businesses as the could not afford to carry their mortgage debt.

Companies that survived learned to adapt, strategize and quickly restructure. They rethought their business. They downsized their brick and mortar footprints. They accepted remote work as the rule, not the exception. As a result, overhead costs started to decrease and workers became more self-sufficient and productive. Dare we say, with more independence and freedom to dictate their own priorities, remote workers became happier.

Running a quick errand to the store when needed, ordering groceries online, meeting with a contractor or helping a child with their homework, take a few minutes, but result in having a great positive impact on our personal lives and well-being. We've even grown accustom to seeing a cat walk across a fellow team members screen. We chuckle and then move on. Remote work has its benefits.

Here are 10 Benefits of Working Remotely

  1. Better Work-Life Balance
    Many remote jobs also come with flexible schedules, which means that workers can start and end their day as they choose, as long as their work is complete and leads to strong outcomes.
  2. Less Commute Stress
    The average one-way commuting time in the U.S. is 27.1 minutes—that’s nearly an hour each day spent getting to and from work, and it really adds up.
  3. Location Independence
    One of the considerable benefits of working from home is having access to a broader range of job opportunities that aren’t limited by geographic location.
  4. Improved Inclusivity
    Remote work enables companies to embrace diversity and inclusion by hiring people from different socioeconomic, geographic, and cultural backgrounds and with different perspectives.
  5. Money Savings
    People who work from home half time can save around $4,000 per year. Gas, car maintenance, transportation, parking fees, a professional wardrobe, lunches bought out, and more can all be reduced or eliminated from your spending entirely.
  6. Positive Environmental Impact
    The 3.9 million employees who worked from home at least half time before the pandemic reduced greenhouse gas emissions by the equivalent of taking more than 600,000 cars off the road for an entire year.
  7. Impact on Sustainability
    Remote work supports a variety of sustainability initiatives, from economic growth and reduced inequalities, to sustainable cities, climate change, and responsible consumption.
  8. A Customizable Office
    Being able to create a comfortable home office is an excellent benefit of remote work.
  9. Increased Productivity and Performance
    Working from home usually leads to fewer interruptions, less office politics, a quieter noise level, and less (or more efficient) meetings.
  10. A Happier, Healthier Work Life
    Remote, flexible workers tend to be happier and more loyal employees, in part because working from home has been shown to lower stress, provide more time for hobbies and interests, and improve personal relationships, among other things.

source: Emily Courtney

Coworking vs. Home Office

Advantages of a Coworking Environment

Working in a coworking space can be an excellent option for a predominantly remote or freelance working individual. They often provide people with a chance to network with other individuals who are in the same type of career field as them. That capability to socialize and interact with others on a daily basis can lead to motivation and creativity, as well as lasting connections that can benefit both you and others as your careers progress. Another positive to coworking spaces is the flexibility that comes with it. Many coworking spaces offer month-to-month leases, as opposed to traditional offices spaces that require multi-year commitments. This makes it easy for someone to hop from one coworking space to another if they feel they have grown tired of the environment they are in or feel distracted and thus can’t get any work done.

Disadvantages of Working in a Home Office

If your business requires you to meet with clients on a regular basis, then working from home might not be ideal. You will constantly need to find different venues or locations where you can have professional meetings. In a coworking space, there are often conference and meeting rooms readily available to host meetings and clients, thus providing an image of professionalism. Another con to a home office is the isolated feelings one can feel every day. It is important to remember that while working from home might be nice at the start, it can turn lonely quickly if the majority of your work consists of staring at a computer screen all day.

source: Coworking Resources

What is a remote work stipend?

First, a definition:

A remote work stipend, or remote work allowance, is a sum of money given to employees for them to use to access perks while working remotely.

A remote work stipend can be used in one or both ways:

  1. to purchase office equipment, a coworking pass, coffee, and anything else that makes their remote work locations comfortable, productive, or successful. It can be a one-time equipment stipend, or an on-going one.
  2. to purchase general perks that an on-site team has access to such as food, health and wellness, learning and developments perks.

Further details on what they are:

  • Stipends can be given out on a monthly, quarterly, semi-annual, or annual basis. 
  • It is comprised of taxable and non-taxable items. Taxes can be grossed up by the employer or employees can cover the taxes.

Four Examples of Remote Work Stipends

As mentioned above, when setting up a remote work stipend, there are two approaches:
  1. You can set up a stipend to help them build their remote work environment, or
  2. You can set up a general perk stipend that gives your team access to personalized perks. If you're a hybrid company, you can craft this type of stipend so that you support your remote people and on-site people equally.

Below are four examples highlighting the unique approaches:

1. HubSpot, a hybrid-remote company

They provide one stipend for their remote people:

$60/month tax-free monthly stipend to their remote people

2. Webflow, a company with 70% of its team remote around the globe

They provide three stipends for their team:

  • $250/month for remote workers
  • $200/month (for everyone) health & wellness stipend
  • $1,000/year (for everyone) continuous learning stipend

Learn more about how Compt helped Webflow make perk allowances possible at their company.

3. Basecamp, a fully remote company

They offer the following perk allowances for their team members:

  • $100/month coworking space stipend
  • $100/month fitness allowance
  • $100/month massage allowance
  • $1,000/year continuing education allowance

To learn more about these in-depth and the thinking behind them, check out their post on employee benefits at Basecamp.

4. Buffer, a fully-remote company

  • $200/month for "Working Smarter" stipend for coffee shop working purchases
  • $500/teammate for home office set-up
  • $200/year for tech/office needs
  • Internet reimbursement stipend
  • $850/year continuous learning stipend

source: Compt.io

Coworking Stipends: A Winning Combination

Remote working is here to stay. Companies and workers (as well as students) have learned to adapt to this new world. Video conferencing tools such as Zoom, Skype and Google Meet have provided us with reliable tools to communicate and collaborate. Successful and promising companies will remain lean, even as the economy recovers.

Companies are converting their balance sheet mortgage debt into a variable expense.


Corporations are trading in their loan payments, fixed square footage and utility overhead for flexible coworking space with remote worker stipends. This new economy is here to stay. And remote worker stipends is a winning way.