How Remote Work Strategies Benefit Employers

Benefits of Remote Work for Employers

Many companies are now implementing work-from-home strategies because of the benefits of remote working. Employees are increasingly expecting employers to permanently offer remote work options, particularly with the rise of work from home arrangements due to the COVID-19 pandemic. 

While the benefits of remote work strategies are apparent for employees, employers also realize business benefits when remote work options are formalized as a component of the workplace strategy. Some of the most significant advantages are discussed below. 

Lowered Business Expenses 

Corporate expenses can often be reduced if employees work from home. Office rent and real estate projects can be reduced or eliminated, and related operational fees such as utility payments, office equipment purchases, and janitorial services can be similarly trimmed.

Further, there’s also a reduced need for ancillary expenses, such as travel and food allowances. When implementing remote workplace strategies, many companies realize significant cost savings. 

Real Estate Savings

Real estate expenditures are generally some of the largest costs a business will realize annually. Purchasing or renting office space is expensive. When managing overall business costs, a large portion of the operating budget is allocated to real estate expenditures, whereby location, square footage, and market value are just a few of the considerations that are accounted for when choosing the best real estate assets. 

Occupancy size, work style requirements for each job role, and worker behavior need to be evaluated to ensure that the property can support business operations. By accurately understanding the real estate requirements needed to promote efficient business operations and implementing remote work strategies, companies can choose the appropriate real estate mix for their portfolios, thereby potentially reducing their real estate expenditures.

Salary Adjustments

By implementing remote work options, companies can create compensation strategies that align with corporate budget goals, while also providing remote workers a fair wage. Further, Cost of Living Adjustments (COLA) can be used for location-based compensation strategies to determine how to balance remote employee salary adjustments, and determine if adjustments are needed. 

Implementing salary adjustments that are favorable to both the employer and employee are highly attainable with remote work strategies. Location-based compensation strategies have gained popularity over the last two years due to the COVID-19 pandemic and the distribution of the workforce away from the office. With proper insight, planning, and change management best practices, businesses can make the best decisions for their bottom line and employees’ salaries. 

Talent Pool Expansion

Remote work strategies also broaden the opportunity to broaden the talent pool you hire from. Because geographic boundaries no longer hinder the hiring of new employees, employers can consider candidates in different cities and countries – which is not possible when employees have to report to an office daily. By offering remote work options, employers no longer need to limit their candidate search to local areas.

Hiring remote workers is an effective way to acquire quality candidates from a broad pool of talent, without the need to spend as much as when hiring local talent, particularly if location-based compensation strategies are utilized.

Employee Productivity and Retention

Data shows that remote workers are often more productive than office-based staff. Remote work strategies are exceptionally output-driven. Unlike working in an office, where simply showing up or “clocking in” is the most common way to determine that employees are working, remote work demands the delivery of quality outputs to validate employees’ contributions and productivity. 

Distractions are sometimes cited as a pitfall of remote work strategies. However, this is a misconception. In fact, there are just as many distractions in an office environment as there are in a home office environment. 

Remote workers may get distracted by taking their dog for a walk, a sudden visit from a friend, or an unexpected errand to the grocery store. Meanwhile, office workers are distracted by coffee breaks, non-work-related conversations with colleagues, and countless meetings that could have otherwise been accomplished via email or instant message. 

Employees who are offered remote work options appreciate the flexibility and control in managing their workday. This freedom often increases employees’ loyalty to the company, and a loyal employee is generally a productive employee. This is especially true for millennial workers, who highly rank freedom and flexibility on their desired list of benefits when choosing an employer. 

Remote work strategies often lead to high employee retention rates, because employees simply do not want to leave employers that offer flexible work arrangements. Higher retention rates lead to additional cost savings, as employers save costs on training new staff due to employee churn. 

New Costs to Consider – Remote Stipend and Training Allowance

In transitioning to remote work, companies may need to invest in upfront costs such as technology tools for remote employees, depending on the type of work they perform. These expenditures can include computers, printers, phones, and even desks and chairs. Company provisions might also include internet and cell phone allowances. Providing assistance for home office and remote working expenses may come in the form of an annual stipend or a one-time cash allowance. 

In some cases, companies also need to consider travel and accommodation expenses for training and seminars that employees will need to attend. This travel can be frequent or infrequent, depending on the scope and nature of the job. There will be times when the company has to accommodate travel for remote workers, however, this can easily be handled with proper budgeting and expense planning.

For many companies, the expenses for remote office equipment and occasional travel costs offer significant savings than requiring employees to report to a physical office location – and by extension paying for those real estate-associated costs.

Cost Savings for Remote Work Employees

While companies can reduce their expenses due to remote work, employees are also able to enjoy savings while working remotely. Some remote employees are willing to earn a lower base salary to retain a flexible working schedule. However, even despite salary adjustments, many employees still realize cost savings with remote work options. 

Savings can be small or large. Smaller savings can be gained from not having to spend money on lunch take-out, or spending money on gas, parking, commuter fees, and vehicle maintenance. Larger savings can include avoiding a relocation to another city for a job, and additional benefits the company might provide for remote work employees (different health insurance options, flexible spending accounts, etc.). 

And while not strictly cost-related, the time employees can reclaim by not having to commute is time that can otherwise be devoted to something personal and fulfilling. The flexibility that working from home offers gives employees a sense of freedom that generally increases their productivity and loyalty.

Is Your Remote Workplace Strategy Working for You? 

With  SCG’s help, your company can undertake a step-by-step process in understanding how to realize the advantages and benefits of a remote work strategy. Reach out to us by filling out the form below and we will help you evaluate and implement the best remote work strategy for your unique corporate culture.