Although it may seem contrary to traditional business culture, having more of your employees work from home rather than together in an office is actually an effective way to reduce company costs and help businesses save money. Among other reasons, home-based employees make way for companies to inhabit smaller offices, improve productivity, and increase employee retention.
Basing some of your employees at home can lead to drastic cost reductions. Smaller offices are cheaper to rent and maintain. When you only need space for a few employees rather than the entire company, you can choose a smaller office rather than a larger one. Not only does this save your company money on rent, it also helps you reduce your energy consumption. Businesses as a whole spend $60 billion in energy annually. When you are able to reduce the amount of energy you need, you will also reduce how much you spend. Money you would otherwise spend on containing extra employees can then be saved and used elsewhere.
Working from home can make your employees more productive. It has been found that remote employees work the equivalent of 1.4 days more per month than their office-based coworkers. Without the need to commute, your employees will be more on-time, thus getting more work done. The obstacles of traffic, public transportation, and parking suddenly disappear. All your home-based employees need to do is wake up and get started. In addition, working from home means fewer missed days. Parents do not need to miss a day of work when their child needs to stay home sick—they can simply continue working all while being there for their child.
Better Employee Retention
Studies show that employees who work from home are 22% happier and report higher job satisfaction. Happier employees usually equate to fewer employees leaving your company in order to seek work elsewhere, thus improving employee retention and strengthening your business in the long-term. Higher retention means less time and money spent recruiting, interviewing, and hiring new employees in the future.
Switching some of your employees to remote work is a good idea if you’re looking to improve your company and increase your profits. Home-based employees are happier, more productive, and will save your business costs in multiple areas. In the long run, having employees work from home is a cost-effective strategy which is sure to benefit your company immensely.
Looking for more advice? Check out How to Improve Employee Productivity Without Causing Burnout