Working from Home: Croatians Want Flexibility, but Not at the Cost of Salary

In recent years, remote work has transitioned from a temporary measure to a new norm. The pandemic accelerated the digitalization of business and opened the door to more flexible forms of work, and employees across Europe, including Croatia, now have clearer expectations from their employers. Workers increasingly want to choose where they perform their tasks, but one thing is certain, they are not willing to accept a salary reduction to enjoy that freedom.

Workers want flexibility, but also security

According to a survey by the European Central Bank, the average salary reduction that employees would accept to work from home two or three days a week is 2.6 percent. Employees who work fully remotely are willing to accept a salary reduction of 4.6 percent. In contrast, those who currently work from home one day a week would accept a salary reduction of only 1.6 percent. Among those willing to accept a salary reduction, the average acceptable reduction is significantly higher (8.7 percent).

This shows that, although most employees are not willing to forgo salary to work from home, for some it is a valuable privilege as income from other sources besides work. Even more importantly, more than two-thirds of respondents, specifically 70 percent, would not agree to a lower salary amount, regardless of how much flexibility meant to them. Only 20 percent would be willing to give up to five percent of their income, while only nine percent of respondents are ready to sacrifice more.

However, there are clear differences among groups of workers. Highly educated employees are twice as willing to compromise as those with lower education. Additionally, experience plays a significant role – those who have already had the opportunity to work remotely would, on average, accept cuts of six to seven percent, while workers without that experience would only go for two to three percent.

Croatian practice: working from home is becoming more common

Similar trends are confirmed by a domestic survey from the MojPosao portal, the results of which were reported by Dnevnik.hr. In Croatia, 26 percent of employees work exclusively from home, and 53 percent in a hybrid model, while only 21 percent still go to the office daily. Working from home has clearly become widely accepted, but employee attitudes towards returning to the office reveal how much flexibility means to them.

Specifically, 64 percent of respondents admitted that they would seriously consider changing jobs if their employer imposed a greater number of days spent in the office, and 12 percent would immediately resign without hesitation. Only a small portion of employees stated that they would willingly return to the office, and only on the condition that the employer offers additional benefits. Among these, the most frequently mentioned are salary increases, flexible working hours, guaranteed parking spaces, or paid hot meals.

Why do workers love working from home?

The reasons why Croatians enjoy working from home do not differ much from the European average. They most often cite saving time on commuting, reduced stress, and better work-life balance. Interestingly, employers are increasingly recognizing the advantages of this model, such as reduced office space costs and increased productivity among some employees. However, on the other hand, the downsides are also increasingly mentioned – weaker communication, a lower sense of belonging to the team, and difficulties in onboarding new employees.

Research shows that employees no longer perceive flexibility as a luxury, but as standard. The generations entering the labor market, particularly millennials and Generation Z, especially value the freedom of choice and are willing to change employers to achieve it. For employers, this means they must find a new balance: competitive salaries remain a priority, but flexible work models are becoming a key factor in attracting and retaining talent. Companies that offer both will have a significant advantage in the labor market.