Business - Markets Reports and Financial News

Letting your employees work from home saves you a lot of money


Times are changing and it is now difficult to deny that telecommuting is a wise business decision.
It the U.S. it is a pervasive, continuing trend and has grown by 80 percent since 2005.

Telecommuting is making such strides because it makes businesses achieve significant cost-saving when employees work from home.

Before you adopt this method, consider the following advantages that might be of great importance to your business;

Telecommuting increases productivity: Research has shown that employees who telecommute are twice as likely to work more than 40 hours a week as those who don’t telecommute.

But this is not applicable to all groups on employees. Those who perform repetitive tasks will have their productivity reduced if they revert to telecommuting. In fact it will be 6 – 10 percent less than that of on-site employees.

Still you may opt for your employees to work from home since the reduced productivity can be offset by the cost savings achieved in other areas such as using online productivity tools.

Telecommuting lowers overheads: Did you know that a typical business that allows employees to work from home just half the time would save up to $11,000 per year? The reduction in cost results from the costs that are avoided. These may include janitorial services, mortgage or lease, office supplies, office equipment, furniture, coffee and water expenses, and transit subsidies.

Telecommuting results in higher retention rates: Employees who work from home report higher job satisfaction and company loyalty than on-site workers. This reduces their turn-over rate.

A study by Staples Advantage found out that employees who telecommute have higher levels of job satisfaction and better work-life balance.

These workers reported lower stress levels, healthy eating habits and being more loyal to their company. Some also reported better work-life balance in terms of bonding with their family members.

It is interesting to note that in the same study, 36 percent of employees chose the option of telecommuting over getting a pay increase, and 37 percent of technology professionals are ready take 10 percent pay cut if they would be allowed to telecommute.

High retention rate also has a cost-saving component since an average company will lose between $10,000 and $30,000 for each employee who leaves the company. These costs include advertisement for vacancy, recruitment, orientation, training, etc.

Telecommuting reduces sick days: On-site workers have the tendency to call in sick than those who work from home. These unscheduled absences are quite costly to a business. Research has shown that they cost employers an average of $1,800 per employee per year.

Employees who call in sick may not be suffering from any sickness at all, but stress and personal issues.

Telecommuting workers are able to work even if they are stressed, and they cope with personal problems so well. They are also able to resume work sooner after surgery or other medical treatments than the on-site workers.

On-site workers also waste a lot of time gossiping or doing their personal tasks in the offices. This is not the case with telecommuting workers who have no workmates to gossip with.

There are no comments yet