Remote work is a rapidly growing trend, having increased 159% since 2005. The desire to work remotely is becoming a more common request from prospective employees and many even say they would be willing to accept a lower salary with the opportunity for remote work. However, we often hear that managers and businesses are reluctant to allow their employees to work remotely because they question whether they will get the same quality of work as they do from employees that work in office. What we have actually found, is remote employees work more efficiently since they are in control of their environment, cost less and are more loyal to their employer. For employers that are on the fence, here are some benefits to having remote employees.

Lower Overhead Costs

The biggest and most obvious benefit to having remote employees is reducing your overhead costs. It is estimated that employers save $10,000 per employee per year on real estate costs. In addition to real estate, other potential costs that can be saved by reducing or eliminating office space include: furniture, office supplies, cleaning fees, utility and transportation/commuting costs. Businesses can choose to have a completely remote team eliminating all office overhead, part-time remote options cutting office overhead in half or a mixed team, all options saving big dollars for an organization.

Reduce Turnover

95% of employers say flexible work options have a direct impact on their retention rates. Studies found remote employees are more satisfied and more likely to remain in their positions for longer. This is because employees with flexible arrangements feel more work-life-balance, have reduced commute times and more time at home. Increasing retention rates also helps businesses save money in the long term since less time is spent looking for talent and training new employees.

Increased Productivity

Two thirds of companies report that remote employees are more productive than employees in the office. This is due to fewer workplace distractions such as unplanned meetings, visits from co-workers, office noise and more. In addition, employees having control of their own work environment can boost productivity. Studies show that remote workers tend to work more hours per day, stating that 53% of remote employees are likely to work overtime hours since they eliminate commute time and can work around personal appointments.

Bigger Talent Pool

By choosing to allow remote work, you open your business up to a much larger talent pool for hiring. You are no longer limited to local talent because you can expand your talent pool into different states or even countries to find the best candidate for your needs. In fact, 68% of young people say remote options greatly impact their decision to work for a company. Remote work also gives businesses access to talent that otherwise might not be in the workforce such as: parents, disabled employees, caregivers, retirees, and part-time workers. Flexible work options open opportunities for companies to hire more freelance, part-time or project-based workers, to have more specialized talent where a full-time hire might not be warranted.

Reduce Absence

Employers also reap the benefit of less absences from their remote employees. Unplanned or unscheduled absences are estimated to cost employers 8.7% of payroll. Employees who work from home and are under the weather are much more likely to keep working since because they are comfortable and therefore help reduce cost to their employer. This also prevents the spreading of germs that might get other employees in the office sick and cause them to also take time off. Aside from illness, employees typically take sick days or time off when they have appointments or life events that may take up a large part of their day. When working remotely, employees are able to work around appointments and events and still get their hours in for the day and complete their tasks without taking time off. This is another way employers can save money because the less unplanned days off employees take the lower costs inflicted.

If you have been unsure if offering flexible and remote options for your employees is the right choice we hope this helped outline some of the ways your company could save on costs, hire better talent, and increase employee morale. At PharmaOut we can help you staff your remote team, contact us today!

References:

https://globalworkplaceanalytics.com/resources/costs-benefits

https://globalworkplaceanalytics.com/telecommuting-statistics

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