--- layout: default_v3 language: default permalink: remote-employees/how-does-working-from-home-save-companies-money.html i18n_link: 2800 updated: 2023-01-11 #--- article key-values ---# collection: default_topiccluster t_keyword: How Does Working From Home Save Companies Money tags: remote employees, engage remote employees, manage remote employees, remote work type: supporting page_id: 2800 hreflang_id: 2800 parent_id: 2762 date_published: 2021-01-19 date_modified: 2023-01-11 #--- javascript schema ---# javascript_schema: - script: jquery_3_2_0_min - script: bootstrap_min - script: article_infinite_scroll - script: article_mix_infinitescroll - script: article_mix - script: article_mix_faq - script: article_mix_toc #--- section schema ---# section_schema: - section: nav-main_menu - section: article_body_v2 - section: footer - section: schedule_demo_cta #--- page key-values ---# meta_tags: t_meta_title: How Companies Are Saving Money from Working at Home t_meta_description: How does working from home save companies money? From turnover costs to rent to utilities to payroll taxes, businesses benefit financially by employing a remote workforce. t_meta_abstract: How does working from home save companies money? From turnover costs to rent to utilities to payroll taxes, businesses benefit financially by employing a remote workforce. i_meta_image: article_body: json-ld_article: v_date_published: 2021-01-19 v_date_modified: 2023-01-11 author: p_author_id: 203 t_author: Priyanka Bhadani p_author_url: priyanka-bhadani.html i_author: 203.png t_author_description: Lauren is an experienced writer who enjoys reading, travelling, and spending time with her children. p_author_facebook: //www.facebook.com/HubWorksApp p_author_twitter: https://twitter.com/HubworksApp p_author_linkedin: p_author_instagram: feature_snippet: p_type: text t_title: t_description: content: heading: t_title: How Companies Are Saving Money from Working at Home t_description: How does working from home save companies money? From turnover costs to rent to utilities to payroll taxes, businesses benefit financially by employing a remote workforce. image: i_image: how-companies-are-saving-money-from-working-at-home-1611014855-8975.png t_image_description: How does working from home save companies money? - reduction in costs v_image_attribution: Unsplash v_image_license: Unsplash v_video: paragraphs: - t_headline: t_text: Many companies have been hesitant about transitioning to a remote workforce. It may seem much simpler to manage a team when they are nearby, particularly for a complex organization with many moving parts.

Though it's not possible to have all employees work remotely, many companies have been successful in transitioning to these new work arrangements. Studies have challenged many negative assumptions, demonstrating that even half time remote workers tend to be more productive, happier, and efficient.

This has generated a mutually beneficial partnership between employer and employee while offering several financial benefits to both. Read ahead for the top financial benefits derived by remote work and how it can improve an organization's bottom line. p_headline_type: h2 image: i_image: t_description: v_attribution: v_license: callout_text: - t_title: The Future of Remote Work t_text: The future we envision for the global workforce is infinite virtual workspaces that will unlock social and economic opportunities for people regardless of barriers like physical location. It will take time to get there, and we continue to build towards this" - Andrew Bosworth, Facebook VP Realty Labs - t_headline: Why You Should Let Employees Work from Home t_text: As more companies see razor-thin profit margins, it's become essential to look for cost savings opportunities wherever they may be. Because labor and real-estate costs can make or break a business, cutting back on those expenses has become one of the top priorities.

With COVID-19 increasing restrictions on businesses, enterprise leaders are looking for alternative ways to maintain operations and still generate a profit. Thankfully, computer software systems have improved connectivity, allowing thousands of businesses to employ remote workers.

Remote employees also enjoy the better work life balance gained by a more flexible work options. They save money on telecommuting and are more likely to meet KPIs, which increases employee engagement and financially benefits the company. Other long term reasons that remote work benefits an organization financially include - p_headline_type: h2 image: i_image: t_description: v_attribution: v_license: video: v_video: A050ElagCMk v_video_language: default t_name: Kevin O'Leary- Remote work will become the norm and it will save companies money t_description: Kevin O'Leary, chairman of O'Shares ETFs and co-host of Shark Tank," joins "Squawk Box" to discuss where he thinks the future of work is heading in the aftermath of the coronavirus pandemic.For access to live and exclusive video from CNBC subscribe to CNBC PRO- //cnb.cx/2JdMwO7 Subscribe to CNBC TV- //cnb.cx/SubscribeCNBCtelevision Subscribe to CNBC- //cnb.cx/SubscribeCNBC Subscribe to CNBC Classic- //cnb.cx/SubscribeCNBCclassic Turn to CNBC TV for the latest stock market news and analysis. From market futures to live price updates CNBC is the leader in business news worldwide. Connect with CNBC News OnlineGet the latest news- //www.cnbc.com/Follow CNBC on LinkedIn- //cnb.cx/LinkedInCNBCFollow CNBC News on Facebook- //cnb.cx/LikeCNBCFollow CNBC News on Twitter- //cnb.cx/FollowCNBCFollow CNBC News on Instagram- //cnb.cx/InstagramCNBC #CNBC#CNBC TV v_url: //youtu.be/A050ElagCMk i_thumbnail: //i.ytimg.com/vi/A050ElagCMk/default.jpg i_thumbnail_1x1: //i.ytimg.com/vi/A050ElagCMk/default.jpg i_thumbnail_4x3: //i.ytimg.com/vi/A050ElagCMk/mqdefault.jpg i_thumbnail_16x9: //i.ytimg.com/vi/A050ElagCMk/sddefault.jpg v_upload_date: 5-29-2020 v_length_minutes: 4 v_length_seconds: 8 v_view_count: 21577 callout_text: - t_headline: 1. Reduction in Numerous Costs t_text: While a business saves money on real estate and labor costs by employing remote workers, they also see other cost savings opportunities. If the majority of employees are remote, the organization doesn't have to pay for utilities, cleaning services, office supplies, and food/water.

Though some of these costs are minimal, they can certainly chip away at profit margins over time. Finally, because companies have less rent and labor costs, they can also sometimes save money on payroll, sales, and property taxes. p_headline_type: h3 image: i_image: t_description: v_attribution: v_license: callout_text: - t_headline: 2. Reduction in Payroll Costs t_text: Surveys have shown that employees would rather take a pay cut and work from home than work in an office. Employers can take advantage of this by offering a work from home option instead of bonuses or excessive raises.

Businesses can reward high performing employees by offering more flexibility in their remote work, such as allowing staffers to pick their hours or have an occasional Friday off. This increased flexibility will minimize some need for bonuses and other expensive payroll costs that eat away at profit margins. p_headline_type: h3 image: i_image: t_description: v_attribution: v_license: callout_text: - t_headline: 3. Increased Productivity t_text: Remote workers appreciate the work-life balance afforded to them and tend to be more dedicated to meeting their KPIs. Studies have shown that remote-based employees are 13% more productive than on-site workers.

This increase in productivity improves the quality of deliverables, customer service, and efficiency of the business. As a result, remote-based employers tend to see an increase in profit. p_headline_type: h3 image: i_image: 3-increased-productivity-1611014855-8740.png t_description: Unsplash v_attribution: Unsplash v_license: Unsplash callout_text: - t_headline: 4. Decreased Absenteeism t_text: Absenteeism costs an organization thousands of dollars a year in expenses. Every time a worker calls out sick or takes an unplanned absence, it decreases the efficiency and productivity of the entire organization.

Other employees have to perform the missing worker's job, which is frustrating and time-consuming. Morale begins to decrease, which causes more employees to take unplanned absences.

Remote work decreases absenteeism because it gives employees the flexibility to manage personal obligations. This helps boost the efficiency and profitability of the company, while also improving employee morale. p_headline_type: h3 image: i_image: t_description: v_attribution: v_license: callout_text: - t_headline: 5. Lower Turnover Rates t_text: Employees who consistently work from home are more satisfied with the work-life balance afforded to them. This improves their productivity and encourages them to meet key targets. If employers reward those who meet goals, it further improves worker satisfaction.

As a result, remote workers tend to stay at the company rather than look for outside opportunities. Because hiring and recruiting is an expensive process, this helps an organization save money on turnover costs. Companies also build a stronger and more effective workforce as opposed to an ever-evolving door of new hires. p_headline_type: h3 image: i_image: t_description: v_attribution: v_license: callout_text: - t_headline: 6. Minimal Travel Expenses t_text: Because of new communication software, individuals can collaborate via video conferencing rather than travel from New York to California to finalize a business deal.

Decreased travel expenses save companies a lot of money, particularly for those with clients across the country. In many cases, the organization can hire remote sales teams who can drive to a target sales area, even if the business is located in an entirely different city. p_headline_type: h3 image: i_image: 6-minimal-travel-expenses-1611014856-7299.png t_description: Unsplash v_attribution: Unsplash v_license: Unsplash callout_text: - t_title: The Cost of Business Travel t_text: - t_headline: Key Takeaways t_text: In conclusion, here are the main reasons a company will save money by employing remote workers

p_headline_type: h2 image: i_image: t_description: v_attribution: v_license: callout_text: event_body: json-ld_event: t_name: Employee Scheduling for Restaurant Managers t_description: Attendees will learn how create excellent schedules. The class teaches managers how to estimate the number of employees they need to staff their locations; how to accurately forecast their customer demand; how to quickly and accuaratly write and communicate schedules to employees; and how to evaluate the accuracy and optimization of their schedules to make adjustments. v_start_date: 2022-08-08 i_image: p_location_name: Altametrics Online Webinar Course p_address: webinar.hubworks.com?site=altametrics v_price: 10.00 t_offer_description: Priority Registration v_registration_url: webinar.hubworks.com?site=altametrics ---