More and more companies are allowing staff to work from home due to the Covid pandemic. Let us see how businesses save money working from home.
Direct Money Savings
Employers get direct cost savings due to telecommuting. Businesses save money on rent, utility bills like electricity, reduced cleaning services bills, reduced food costs, reduced taxes etc. For example, no more refreshments are required during meetings, or business saves on cafeteria expenses. Moreover, due to work from home policies, the office size may also decrease over time.
Improved Employee Retention
Working from home enables employees to enjoy a better work-life balance, leading to better employee retention levels. The organizations save a lot of money on recruitment for replacements, especially for sough-out team members. Businesses can save money working from home with improved employee retention.
Work from home usually leads to increased productivity of most employees. For instance, they are not exposed to a loud environment, and they are not distracted by co-workers.
Moreover, remote workers avoid commuting stress, which implies that they can focus on their work more efficiently. Higher productivity automatically translates into considerable savings for businesses. Businesses can save money working from home with increased productivity.
If you want to know more about WFH savings and costs for businesses, see Does Working From Home Save Companies Money?“
Reduced Payroll Costs
Some of you may be quite surprised to know that most employees prefer a flexible workplace to a pay raise. Employers can even motivate their employees with this beautiful tool. It indirectly helps businesses in reducing payroll costs without compromising productivity. Businesses can save money working from home with reduced payroll costs.
Reduction In Absenteeism
Work from home allows team members to schedule their office work as per their unique needs. Moreover, research has established that remote workers are healthier than their office counterparts. Such employees would otherwise have taken a leave to deal with their obligations or illness.
Hence, absenteeism is reduced to a bare minimum. Businesses gain from this trend in terms of improved productivity because employees are less likely to take sick days.
Eliminate Unnecessary Meetings
Meetings have become a necessary evil. Even if you have an airtight meeting agenda, it is challenging to keep the team members organized.
It is a drain on business resources. With the latest technology advancements, you can have more effective meetings online. You can imagine how much human resources a business can save by eliminating unnecessary meetings. It eventually boils down to considerable savings for any business.
The Happiness Factor
Last but not least, remote workers are a lot happier. Happiness due to increased flexibility and better work-life balance reflects in every aspect of the business. The saving possibilities are endless when employees are happy. Hence, Companies can save money working from home by allowing employees to telecommute.