Entrepreneurs

Council Post: How Remote Work Can Increase Business Profits

By Benjamin Rojas, President and Lead Developer of AIOSEO. WordPress enthusiast and software expert. Helping businesses improve their search ranking.

The Modern Workplace 19/20 study by Condeco shows that nearly half of U.S. companies offered remote work options already in 2019. In 2021, this number has increased to 58.6%, according to a NorthOne report

This trend isn’t expected to end any time soon — quite the contrary. A Gartner, Inc. CFO survey unveiled that 74% of companies plan to shift permanently to remote work after the pandemic ends. This shift results in part from companies noticing a decrease in operating costs and an increase in business profits.

More importantly, remote work also offers employees more flexibility and the ability to maintain a better work-life balance, which benefits companies in the long run.

Businesses that adopt this concept will be more attractive to job seekers. Another study conducted by Pr Newswire shows that 80% of U.S. workers would turn down a job that didn’t offer flexible or remote work.

While working remotely is highly requested by employees and job seekers, it is, in fact, also beneficial for companies and can significantly increase business profits, and here is why:

Reduced Operating Costs

Remote work does reduce operating costs since fewer employees are physically working at the office and using office supplies, computers and work desks. 

Specifically, remote work eliminates overhead costs like lease expenses, office furnishings, utilities, insurance, supplies, upkeep and repair — fees that add up rather quickly.  

For instance, workplace cost and benefits statistics by Global Workplace Analytics reveal that IBM saved $50 million in real estate costs by allowing remote work. The company shed more than 58 million square feet of office space and reduced lease expenses drastically. 

Increased Productivity

Some companies still believe remote work leads to time-wasting and a lack of productivity, but this old-fashioned stigma has been proven incorrect. 

In fact, remote workers are generally more productive than employees who work in an office setting. That’s because the ability to set their work schedule allows employees to work during the hours they are more productive, instead of the standard 9 to 5. 

The hours when an employee is the most productive depends on their personality type and lifestyle, so offering a flexible work schedule can significantly increase productivity.  

In addition, working from home or in a remote location also limits distractions from other co-workers who are coming to chitchat at your desk. Overly social employees can be costly for companies in regard to lost productivity. But remote work eliminates this productivity killer, and employees can get more work done with fewer distractions.  

Improved Employee Retention Rate

Hiring new employees is a “costly business.” The average company in the U.S. spends $4,000 to hire a new employee, and it takes about 52 days to fill the position.

Flexible work is by far one of the most effective benefits companies can offer to improve their employee retention rate. And this statement was supported by 75% of employers in one study. Companies noticed a drastic reduction in the turnover rate when offering remote work options. 

Overall, the flexibility remote work offers contributes to happier and healthier employees. Remote workers also save money on commuting, child care, clothing, food and more. And in some cases, the company even covers home internet expenses for their remote workers.

Today, companies that don’t offer remote work opportunities have a huge disadvantage. Not only are these businesses less attractive to new job seekers, but they can also lose their existing employees who will be looking for remote work opportunities elsewhere.

Higher Chance To Find The Best Talent

When limiting to traditional work arrangements, companies can primarily only recruit from the city or state in which their business is located. Most people aren’t going to want to move particularly far away to start a new job, meaning that your options to find the best person for the job will be limited.

However, companies that offer remote work can source the very best talent, regardless of geographic location. There are no location limitations to searching for talented workers, which increases the chances of finding the perfect fit. 

As mentioned, offering a flexible work situation will make your company more desirable. It shows that you respect and consider the work-life balance and understand that keeping up with family and other life obligations demands more flexibility. 

Conclusion

There is an old-fashioned stigma in thinking the employee will escape their work tasks when working from home. But this couldn’t be further from the truth since remote workers tend to be more productive and engaged, ultimately increasing business profits. So, if your company is looking to save on operational costs, improve employee retention rates, streamline the recruitment process and increase productivity, consider giving remote work a chance.

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