Statistics show that 36.2 million employees in the US will be working remotely by 2025. Remote work has become a buzzword in the modern workplace and for good reason. With technological advancements and changing work cultures, remote work is no longer a luxury but a necessity for many businesses. The benefits of remote work are numerous, ranging from increased productivity to increased employee satisfaction.
For employees, remote work offers greater flexibility in terms of their working hours and location. They can avoid long commutes to the office and have more time to spend with their families or pursue personal interests. Remote work also allows companies to tap into a wider pool of talent as they are not limited by geographic location when hiring.
However, one of the leading benefits of remote work is that it can cut business costs significantly. By allowing employees to work from home or other locations outside of the office, companies can save money on a variety of expenses, including rent, utilities, and office supplies. This can be especially beneficial for small businesses or startups that may not have the financial resources to maintain physical office space.
Below we share some tips on how to cut business costs by employing a remote workforce.
Minimize Absenteeism
According to reports, 52% of remote workers are less likely to call in sick. Even when on vacation, remote workers don’t put off small tasks such as answering emails and phone calls or completing urgent work. They prefer to complete tasks immediately rather than letting them pile up.
While there are some concerns about reduced attendance with remote work, these concerns can be addressed through effective communication tools and processes. With automated time and attendance tracking software, business owners can see when their employees start to work and when they finish. The software can be used to track what tasks their remote employees are currently working on, the amount of time they spend doing each task, and their efficiency.
Companies that embrace remote work can take advantage of the benefits it offers while still staying connected with their employees through regular check-ins and virtual meetings.
Increase Employee Retention
It comes as no surprise that employees who are happier at work are more likely than others to stay in their current job. Employees have become accustomed to flexible work arrangements as remote work becomes more common. They are more likely to seek work elsewhere if their employer has unfavorable requirements for returning to work.
By offering permanent telework options or hybrid work, you encourage your employees to stay with the company. Reduced employee turnover allows you to maintain productivity and eliminates the need for new staff.
You can save money by doing this in two different ways. You don’t need to spend time and resources searching for new staff, or training them. And you won’t lose productivity if the new employee needs to shadow your current employees. Also, there’s no interruption in productivity when an employee leaves and a new one enters.
Lower Overhead Costs
Remote companies do not have the overhead costs of a central office, including rent, parking, utilities, security systems, and small maintenance projects. This can be eliminated when all team members work remotely.
Consider furniture and equipment costs. You will have no office, no desks and you will not have to spend money on chairs, couches or lamps. Even if you reduce a small amount of space, you’ll still save money.
Access A Wider Talent Pool
Finding quality employees for your business can be challenging. You may struggle to find local candidates and unexpected employee departures can disrupt workflow. However, if you allow remote work, finding an employee that lives anywhere can be easy.
Some skilled workers might even reside in another country. You could be able to save money by hiring workers in another country due to the differences in living standards, labor laws, and contracting laws.
Reduce the Cost of Continuity of Operations
Every business that is worth its salt has a contingency plan for emergencies. This will help them get back up and running after a disaster; even remote businesses. What’s at risk is much greater if your entire staff works from the same physical location.
For example, a simple rainy day or an unexpected event can put your business to a standstill. You’d need to have security, smoke alarms that work, and proper employee training on how to deal in case of a disaster. By having a remote workforce, you won’t have to spend thousands on insurance, secure HVAC systems, CPR classes for large groups, or preparing corporate buildings for fires or earthquakes. Remote work ensures your employees’ safety while minimizing your costs.
Final Thoughts
With the rise of technology and communication tools, remote work has become more feasible than ever before. Companies can save on office space, utilities, and other expenses associated with maintaining a physical workspace.
Moreover, remote work allows companies to tap into a global talent pool without the need for relocation expenses, while providing flexibility and work-life balance for its employees.