The Covid-19 pandemic is changing our lives. From personal lives to work, everything is seeing a change that we did not expect. Many businesses in these crucial times are only focusing on surviving through these challenging times. And they are looking for a way to cut back on costs not just in the short run but in the long run. While the pandemic is affecting our lives, many of us came to know about remote working. The concept was quite common before the pandemic but just within a few companies in specific industries. They used to hire remote teams before this pandemic too. But now, companies are viewing it as a great option to cut back on costs.
When we talk about the benefits of remote working to an employer, the most significant service is cost reduction. Remote working plays a vital role in cutting down on costs.
As per Global Workplace Analytics, companies can save up to $11,000 per worker annually simply by enabling them to work remotely half the time. And this is just by working remotely half the time. So, hiring a dedicated remote team is bound to reduce your costs.
Have a look at this article to see how you can reduce costs by having a remote workforce.
Reduces Overhead Costs
When we talk about cost and expenses, the most considerable expenditure of a company is its rent. For new businesses, things that they are most worried about it is rent. Even a small space in Manhattan or Los Angles can cost you thousands of dollars each year.
Other overhead expenses such as utility bills, parking fees, security systems, furniture, etc., can add up to become a considerable amount. However, with remote working, all of these expenses are no longer your headache.
Moreover, you don’t have to worry about the expenditure regarding the accessories or tools. Employers can ask their employees to bring their own devices. Furthermore, the remote employee hiring cost is much lower in comparison with hiring an on-site worker.
Since your team would be working remotely, there is no need for you to have ample office space or even an office space at all. Thanks to remote working, you don’t have to worry about anything else except wages and salaries.
Maintaining a work-life balance is essential. Once you have an onsite worker, they might go on vacation, take a sick day, or need a day for their matters. But these day-offs can disturb the operations or halt the progress of any project as well.
However, with remote working, you can cut back on absentees. Since employees have the flexibility to work from home, they can take care of matters and then carry their job as usual. If an employee wants to leave for his child’s meeting, he can simply go for a few hours and then come back. He can quickly resume his work instead of taking half-day at the office.
Also, people that have mild illnesses can work from home too. They would prefer working from home to prevent others from the diseases. Similarly, you will find many employees willing to work on vacations as well. They would not mind working a few hours remotely and then enjoy their vacation. It is at the discretion of the employee, but you will find most of them willing to work even on vacation.
Reduction in absentees would ultimately lead to an increase in productivity and output.
Reduces Employee Turnover
Retaining an employee is equally important as hiring one. Once you have the right fit, you don’t want them to leave. If you ask most of the employees, they leave because they are not satisfied with their current job. Long commute hours along with office politics demotivate and dishearten many of your employees. Therefore, they find it much easier to quit and go somewhere else.
Since hiring an employee is time-consuming and costly, you don’t want to go through that process repeatedly. Plus, the new employee would take time to blend in and understand the working method. But thanks to remote working enables them to work remotely from the comfort of their home.
Increased retention will help you save money on a significant expense. Apart from lowering morale, affecting productivity, and wasting time, high employee turnover can result in a rotating loop of workers, with the costs of such constant hiring quickly adding up.
Moreover, lower retention can help you stay focus on other core aspects of your business. Also, you can rely on your workers and trust them more to take care of things. Senior resources are an asset for any company. And they would not want them to be disturbed or dissatisfied. Hence the best way to keep them happy is by letting them work remotely.
Numerous studies back the statement that remote working increases productivity. A happy employee is equivalent to a productive employee. The most crucial factor that contributes to productivity is the commute. Employees have to wake up early, get dressed, and then drive or take a bus to work. They can encounter traffic along the way, which ultimately demoralizes them.
So, from the beginning of their day, all of their energy is wasted on these sorts of things. By the time they are ready to get to work, there is any other distraction that comes along their way. All of these ultimately affect their productivity and efficiency.
But with remote working, employees tend to be more productive than before. Since they don’t have to rush to work, they have peace of mind when working. Also, people on remote teams tend to be happier because of their freedom and flexibility. They can efficiently and quickly complete their hours or tasks instead of sitting long hours in the office looking at the clock again and again.
As the world is still fighting the Covid-19 pandemic, one thing is for sure that remote working is here to stay. Though many people and businesses were reluctant to adopt it but seeing the benefits, they are now comfortable with the system. And why not? It’s a win-win situation for both of them.
Businesses can save thousands of dollars every year by cutting back on costs. On the other hand, employees have the feasibility to work from home. They can now save time and money which they can spend on their family. This is just the tip of the iceberg. When you go down and implement remote working, you will understand the full potential that the model offers.
Cost-effectiveness is one of the core business objectives. Businesses around the globe look for ways to reduce costs without affecting productivity or output. And for them, the solution is here in the form of remote working.
The best part of remote working is that it brings down geographical barriers. You can now hire remote teams from anywhere in the world. And with the new advancements and technologies coming in every day, it is becoming easier to manage and control them.