On average, if a company’s workforce were to work from home for half of the year, a company could save an incredible $11,000 per employee. https://www.monster.com/.../article/The-Benefits-of-Working-From-Home Another way in which remote workers can save companies significant amounts of money is by opening the door to a much wider talent pool. Does COVID-19 Mark the Beginning of a Remote Working Future? Cost savings of allowing employees to work from home. In fact, a majority of professionals like work from home call center agents say they would be more loyal to their employers if they had flexible work options that allow for a better work-life balance. Lockdowns went into effect in March, and businesses were encouraged to have employees working remotely from home to maintain social distancing.Â. The COVID-19 pandemic has shone a light on working environments, particularly the possibilities of working remotely. This not only helps you keep tasks on track, but it also provides stakeholders a single destination for monitoring the progress of various initiatives. Research also suggests companies that encourage and support a work-from-home protocol actually save money in the long run—an added bonus on the employer side. I even phoned HMRC and got it to give me a direct quote: "We recognise that the working-from-home situation is very fluid this year, so we're accepting claims for the full year's expenses. Advantages of Agile Work Strategies For Companies We’ve read over 4,000 studies, reports, and articles about Agile work and here are what we’ve found to be the most common advantages for the companies that establish such programs. 30% of remote workers are saving … 5 Tips to Get Your Office Back to Normal After Quarantine, How to Transition to Long-Term Work From Home, How to Support Furloughed Employees (and Bring Them Back to Work Properly). This means that you can reward your employees for their good performance with the flexibility of working remotely rather than a pay increase. Does Working From Home Save Companies Money? The following pros and cons of work-from-home programs aren’t just our views; they’re the outcomes from a wide range of studies. … The most obvious cost savings that results from having employees work from home is reduced overhead. Learn more. My name is Baruch Silvermann and I am the founder of The Smart Investor, a free online academy for investors. Over 50,000 readers come to our site every month to get advice and understand how to make better investing & personal finance decisions. Most business owners appreciate that meetings can be a time suck and waste precious resources. Desk-sharing too. That includes even if people have only worked from home for some of the year, to avoid needing to contact us if you have to work from home again." Another of the most popular policies to revisit is the five-day work week. Working from home can save you time (goodbye, commute) and money. If you pay for some sort of mass transit, you might also save money when you telecommute. This was the finding of a recent survey that found that nearly 40 percent of Americans couldwork from home … Authored by Paul Petrone. On the flip side, the cost savings associated with remote work may win over many companies. Exclusively working from home can feel as if the line between work... How to Avoid Mistreating Employees During COVID-19. On this question, the data is mixed. Fortunately, there are lots of solutions on the market, but you will need to factor this into your costs. Oil, Gas and Energy, Jan 04, 2019 by Dustin Smith in Trends, Mobility. Amount of money saved by working from home Currently, around 60% of the UK’s population has left the workplace to work from home and 9 in 10 (89%) believe this is reducing their expenditure. Money Saved From Telecommuting. Instead of driving, and spending money on gasoline, you can save when you work from home. Email * Or it can add travel points to be used for business trips. Working from home can provide parents with childcare responsibilities flexibility, while other workers can enjoy an enhanced work-life balance that will help your business to see an improvement in employee retention. The pandemic accelerates the shift to remote work, Cost savings of allowing employees to work from home, Other potential benefits of a remote workforce. Another way you save is in needing a smaller wardrobe. The pandemic accelerates the shift to remote work. People who work from home half time can save between $2,000 to $6,500 a year. Moe Vela, Chief Transparency Officer of TransparentBusiness, a remote workforce management solution, said in a phone interview with Small Business Trends, “This is truly an unprecedented situation that has led businesses to have no choice but to adopt a remote workforce model.But then what companies are seeing is that it works. However, studies have shown that a flexible work schedule also leads to healthier employees. Like a programmable home thermostat that can monitor itself, the smart grid will save you money and time by turning on and shutting off IT components as dictated by your power supply needs. While it requires a certain degree of trust to allow employees to work from home, your business could benefit from increased productivity. If you’re a freelancer or your employer will let you do it, working from home is a great way to eliminate many of these unnecessary expenses. Dan, who asked to remain anonymous, used to work from home. Working from home certainly has its benefits, and the opportunity to save money is a big one.Just how much cash are we talking about? This is a financial benefit that may be harder to see, but it shouldn’t be ignored. With current technology, you can still collaborate, but your meetings are likely to be better planned and remain on message. Any industry with a direct and predictable relationship between inputs and outputs—manufacturing, retail, construction—is not going to cut hours. They destroy morale, weaken the company and signal to the market something isn’t working. Larger—Potentially Less Expensive—Talent Pool. As most people are aware, since the COVID-19 outbreak, the economy has been on hold. These include: In the past, working from home was unfeasible for many companies, but today's technology has made it easier to make this transition. In addition to being an effective recruiting and retention tool, letting employees work from home can save employers money in myriad ways. Media and Entertainment According to a GetAbstract survey, almost 43% of full-time employees in America want to work remotely even once this crisis has passed, and the economy reopens. The company shed more than 58 million square feet of office space, for a savings of nearly $2 billion. There are pros and cons you need to consider before taking the plunge. Zero commute, no office energy consumption – working from home seems the most sustainable solution. And that's qualified as if you work between two to three days at home. Working from home can be a dream for many. They’ll be happier. Teleworkers will need access to software, data and your computer systems. The tumble dryer can be a real energy vampire, so look to air-dry your clothes where you can. Companies have been forced to embrace remote working amid stay-at-home orders for all nonessential positions and businesses. By not having to do things like commuting and buy lunch every day, the average employed worker said they save £44.78 every week . Even if you work from home only two or three days a week, that can add up to substantial savings in gasoline. It also calculates the amount of time you could save per year. I am a woman of age 79 and need extra money for myself (and in need of a new car). It could also save $600 billion a year for employees, companies and communities! Read how businesses around the world are embracing a new work paradigm and leveraging video to enhance productivity and collaboration. However, it is worth considering that the COVID-19 pandemic has brought remote working to the forefront of employee's interest, so it is a good idea to start laying the groundwork to determine if it is feasible for your business after the current crisis has ended. Although working from home can save companies money, there are hidden costs that will need to be assessed. The amount of money and time that drivers can save via telecommuting is astounding! Connect and meet with anyone, anywhere from any device with stunning quality and end-to-end encryption, Enhance any meeting or classroom with advanced collaboration tools built for brainstorming, planning, visualizing and teaching, Outfit your meeting rooms with the leading audio and video conferencing devices, Bundle Lifesize meeting room systems, cloud service, maintenance and support for a fixed, predictable price, Share presentations and media effortlessly with true wireless screen sharing, Automate and improve workflows with pre-built integrations for Microsoft Teams, Slack and more, Elevate your meeting experience with our end-to-end, global 4K video platform, Deliver next-gen customer experiences with CxEngage CCaaS solution with native Lifesize video, Collaborate effortlessly with Kaptivo digital whiteboarding solutions for meeting rooms, education and remote work, Banking and Finance Because remote workers aren’t shelling out for commuting costs and often save money on lunches and coffees, they often do not mind a slight reduction in wages. $18.00 divided by 48 =.375. In San Francisco, it’s not crazy to see a $15 sandwich or $4 coffee. See how the perfect mix of smart video conferencing systems and easy-to-use video conferencing apps sets Lifesize apart, A detailed look at the two leading cloud video conferencing solutions, Learn everything you want to know about video conferencing from the history of the conference call to selecting an enterprise-grade video conferencing solution. Remote workers typically save about $4,000 a year by working from home, according to a study from FlexJobs, an online job service that specializes in flexible jobs. Additionally, remote workers don't have the stress of commuting, which means that they can focus on the task ahead rather than needing time to calm down after tackling the morning rush hour. You may need to make some infrastructure changes to support remote workers and prepare for any remote technical support issues. When you work from home, you don’t need the … But for some, it can also mean a bigger tax bill. And according to the Telework Research Network, companies could actually save $6,500 annually per employee. Flexibility allows companies to match payrolls to seasonal shifts in employment. 6. You can keep your payroll costs down without compromising productivity. By hiring Californian employees, a New York company can operate from 8 a.m. to 8 p.m. without anyone working overtime. It can cut a few percentage points off the bill. Read more. As a result, we’re now watching the work-from-home trend take off. Working from home … Recruitment can be one of the biggest headaches for businesses, and it can be even more frustrating when those carefully sought-out team members decide to leave. Having remote workers offers businesses a number of benefits, including saving money, but some potential drawbacks need to be explored. Let’s assume the following commute scenario: The issue resonates -- and in no small part because of the money at stake. Yes, this includes money spent getting to and from work, such as gas if you’re a driver or public transit if you take the bus or subway. On the other hand, it can also be harmful. In the business world, money talks, so let’s talk about money while looking at some top working from home stats. According to an IQAir report, the slowdown of economic activity during the pandemic has the potential to reduce fine particulate air pollution by as much as 60%. On the one hand, working from home does wonder to your health and can increase it a lot. Morale is a fundamental aspect of productivity and employee... 7 Strategies to Motivate Your Remote Team. According to Global WorkplaceAnalytics, almost 6 out of 10 employers identify cost savings as a major benefit of telecommuting. If your employer requires you to work at home, you can – and always have been able to – claim for increased costs due to working from home, eg, heating and electricity. Manufacturing Employees also save money when they work from home, which is something I didn’t fully appreciate until I joined a company that encourages remote work. On average, he says, turnover decreases by 50% when the work from home option is available. It was kosher. If you are a freelancer or self-employed, there are some tax breaks you are likely eligible … While you're not likely to have happy employees if you want to cut their salaries in exchange for a more flexible workplace, research shows that almost one-third of employees would choose to work from home over a pay raise. Health Care Privacy Policy | Terms of Service, Lifesize unveils new CxEngage capabilities and integrations, 4K Video Conferencing: How to Connect Virtual and Global Teams with 4K Video, Video Conference Etiquette: 10 Do's & Don'ts of Video Calls [2020], Now That You WFH: Here’s How to Set Up Your Home Office, U.S. Worker spends almost an hour a day commuting, 3.7 million employees who currently work from home at least half the time, [INFOGRAPHIC] The Remote Worker Revolution is Upon Us, Tipping the Work–Life Balance Scale with Video Conferencing, Security, Transparency and Open Standards: Our Commitment to Enterprise-Grade Video Conferencing, Microsoft Teams Video Conferencing Solution: How to Integrate Lifesize and Microsoft Teams, Work-from-home email: How to craft a work-from-home request in three steps, Lifesize Share: Meeting Room Digital Signage & Wireless Screen Sharing. Many established businesses have already enjoyed savings due to telecommuting. In fact, studies show up to 93% of communication is nonverbal. © 2020 Lifesize, Inc. All rights reserved. If you buy a 1 pound bag of Starbucks coffee for $18, you’ll be able to make 48 6-ounce cups of coffee (according to Specialty Coffee Association of America). This site uses cookies. Which expense tracking service is right for you? According to an article on the Forbes website, companies that have alternating busy and slow seasons can save money by focusing on flex. Cost savings, better productivity, global coverage, and a diverse workforce makes remote work one of the best business models a growing company can implement. I have been having financial problems for a while and I’ve been looking for ways to start making extra money working from home (I have health issues and cannot work elsewhere). Advantages of Agile Work Strategies For Companies We’ve read over 4,000 studies, reports, and articles about Agile work and here are what we’ve found to be the most common advantages for the companies that establish such programs. There are clear financial benefits that come with employees working from home. Amount of money saved by working from home Currently, around 60% of the UK’s population has left the workplace to work from home and 9 in 10 (89%) believe this is reducing their expenditure. Although this took some logistical planning, the abundance of technology that we now have has made it feasible. https://www.flexjobs.com/blog/post/does-working-remotely-save-you-money Recent studies have supported the idea that working from home—for the right people—can increase productivity and decrease stress. Also, if people aren’t working in the same physical location, managers feel that team cohesiveness and company culture could suffer. For example, you may need to pay for video conference software or other collaboration tools. Working from home is also a great option for small business owners who want to forgo on the hassle of renting out an office, buying office supplies, and … There have also been some unexpected effects of employees working from home. Though a much less tangible cost, lowering your overall daily … By offering your employees the flexibility of working remotely and the best technology to help them succeed, you can easily beat the competition by having a better, more motivated staff and saving a small fortune in overhead. Tax Breaks. While working from home, she was able to keep an eye on her kids. Forget crowds and traffic. No solution is 100% perfect, so you need to be aware of the potential drawbacks before you commit to adopting a teleworker team. Everyone seems to be talking about work-life balance these days, and there’s no … So companies that aren’t willing to invest in technologies like video conferencing that allow employees to work efficiently from home are leaving money on the table. The first question is whether a shorter working week affects productivity. Employees often value flexible work schedules, such as work-at-home and telecommuting options, because the work option gives them a more effective work-life balance. Better Health. Weighing the options, a number of top executives have elected to continue allowing their employees to work from home. Companies that don’t have to pay for employees’ office space and supplies can save quite a bit in a year. Companies including Mondelez, Nationwide and Barclays are moving to permanent work-from-home positions as a result of cost-cutting needed in … There are nonmonetary benefits as well. Dedicated instant messaging tools like Slack or Microsoft Teams are a great way to keep remote employees connected while keeping data safe and secure. Dry it out. Topics range from remote teams to the science of decision-making and how to build an antiracist company. There are also delays that result from trying to coordinate people from multiple departments into one venue. And according to the Telework Research Network, companies could actually save … When companies have the freedom to hire outside of the hub of corporate HQ, the talent pool grows and — as we all know —  better and smarter workers means greater productivity and innovative thinking. Expenses that the worker does have from working at home – like the cost of laptops and other equipment – are often thought to be their responsibility, as they will likely be using the gear for leisure as well. Every business is unique, and so you will need to evaluate the benefits and drawbacks as they apply to your specific business before you make a decision. Here we listed main benefits of working from home for employers/employees. Flexible scheduling allows your team members to fit their work around any personal obligations that would otherwise have, resulting in taking a day or two off. Flex-time scheduling also has … There are lots of ways that remote working can offer businesses cost savings. Can working from home save companies money? However, what many companies want to know is if having remote workers will save them money and what other benefits it could provide. On the other side of the equation, the employee would be saving anywhere between $2,000 on the low end and $7,000 on the high end over the same period of time. Remember, time is money! When you switch to a remote work arrangement, you will need an agile management tool designed to help you and your team track who is doing what and the status of ongoing projects. The following pros and cons of work-from-home programs aren’t just our views; they’re the outcomes from a wide range of studies. 10 Ways to Build Morale While Working From Home. Look before you leap into the ranks of employees who work from home. But, is this beneficial for companies? Find out more. While working from open offices increases the probability … In a Gartner survey, 3 out of 4 finance executives asked are considering moving at least 5% of onsite workers to a remote position permanently after the current pandemic crisis ends. Working from home is also a great option for small business owners who want to forgo on the hassle of renting out an office, buying office supplies, and the overall preventive maintenance that comes with renting a space. 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