In the past few years, companies throughout the world have embraced remote work and expanded the options available for employees. As it turns out, remote work is equally beneficial for employers as it is for employees so it ends up being a win-win for everyone.
Employees get benefits like greater flexibility, better work-life balance and time savings from not having to commute. On the other hand, employers see increased productivity, greater access to talent and cost savings. These are just a few of the benefits of remote work for employees and employers, but in this post we’ll discuss the others you can get from offering remote work.
What are the benefits of remote work for employees?
Working remotely provides several benefits for employees, from improved personal life to improved workplace productivity.
1. Greater flexibility
Employees who work remotely appreciate the increased flexibility it affords them. This flexibility allows them to structure their work schedules around personal commitments, from at-home chores like laundry and cleaning to daily childcare obligations.
According to the National Institutes of Health (NIH), flexible work schedules have been shown to reduce the likelihood of work stress by 20% and improve job satisfaction by 62%. A recent survey from Flexjobs showed 80% of surveyed employees said flexible working arrangements would increase their loyalty to their company.
2. Better employee health
Remote work has positive effects on employee health because employees who work remotely get more time to invest in their physical and mental well-being. For example, the CDC notes remote workers have more time to engage in health-promoting activities like exercise and mental preparation. These workers may also have an easier time scheduling regular visits to the doctor or mental health professionals. Additionally, remote work can help employees improve their work-life balance because they’re better able to accommodate personal obligations through flexible scheduling.
3. Less time commuting
Employees who don’t need to commute to work get time back to their day. In fact, a study by the National Bureau of Economic Research (NBER) found that cutting out a commute by working remotely saves employees 72 minutes each day on average. The NIH also reports each additional 20 minutes of commuting to work has the same negative effect on job satisfaction as taking a 19% pay cut.
Outside of saving time from their commute from home to the office, remote employees also save time by not having to move from meeting room to meeting room throughout the day. One survey showed 40% of employees waste half an hour trying to find a space to meet in an office, while the average employee spends nine minutes prepping for each meeting. Video conferencing and other digital communication services give that time back to remote employees.
4. Cost savings
Remote work saves employees money in many ways. First, when employees don’t have to commute to an office, they save money on transportation expenses, whether that’s ongoing car costs (gas, maintenance, insurance) or spending money on public transportation. Secondly, employees save money by reducing the amount they spend on office socialization such as lunch or coffee breaks. Additionally, remote employees may be able to stretch their dollars even further by choosing to live in a lower-cost area that’s further from a major city. Some employees may save even more money by reducing the costs they spend on office-appropriate clothing, depending on the dress code or expectations of your workplace.
5. Limited distractions
Distractions are a top issue in most workplaces. Whether it’s other employees stopping by to chit-chat, ambient noise from other workers, or the office environment or non-stop meetings — employees in offices face significant distractions. Research shows distractions increase stress levels and it takes an average of over 23 minutes to regain focus after experiencing a distraction.
While remote employees may face their own distractions at home, research shows remote workers actually face fewer distractions than their in-office counterparts. In fact, remote workers regain nearly 62 hours of work annually compared to their in-office colleagues due to daily distractions.
6. A more personalized work environment
Remote workers have more control over their work environment including lighting, decor, sound and equipment. Allowing employees to tailor their workspace to their preferences can have an impact on their motivation and performance. For example, some employees may work better with background music while others do better in silence. Even small personalizations like the choice of artwork and greenery or use of ergonomic desk equipment may help employees feel more comfortable and productive in their workspace.
What are the benefits of remote work for employers?
Employers who provide remote work opportunities for employees see many benefits, from individual employee well-being to organizational improvements.
1. Improved employee productivity
According to Forbes, people who work remotely are 35-40% more productive than those who work in a traditional office and their work has 40% fewer mistakes. Organizations with remote workers often report higher output and improved efficiency thanks to greater employee autonomy. Remote work empowers employees to plan their work schedules around personal obligations, reducing employee stress or allowing them to work during peak productivity hours. Remote employees can also see increased productivity from personalized work environments tailored to their preferences.
2. Enhanced talent acquisition
Offering remote work opportunities gives your organization a much broader talent field. Surveys show over 95% of workers want to work online at home at least some of the time. Advertising remote possibilities means your organization will attract those searchers better than jobs that are in-office only.
Furthermore, when your recruiting efforts aren’t tied to office geography, you can hire from (almost) anywhere. Local licenses, taxes and laws are always important factors in where employees can work, but if you allow your employees to work from anywhere, it opens you up to a broader range of applicants. This can also help your organization get a larger variety of opinions and skills, which will provide different perspectives when making strategic decisions.
At the same time, you can save money on company relocation costs if employees need to move away from the office. New employees can also start their job much sooner than if they have to move to your office location to begin.
3. Better employee retention
Because remote work improves job satisfaction, it’s no surprise offering flexibility and remote opportunities increases employee retention. According to the Forbes research mentioned above, 54% of employees surveyed said they’d leave their current job for one that offered a more flexible schedule, and businesses that offered the option to work remotely reduced their turnover by an average of 12%. The greater flexibility of a remote or hybrid schedule can be an enticing benefit for employees, especially if you give them a say in the type of schedule such as the days they work remotely.
4. Cost savings
Office space is a major expense for most businesses. Some research indicates the average cost of an employee workstation ranges from $1,000-$1,500 per month. The costs of maintaining a traditional office add up:
- Rent or mortgage
- Furniture and equipment
- Electricity
- Heating and cooling
- Water
- Wi-Fi
- Security
- Janitorial/maintenance
- Amenities like snacks or a coffee shop
A fully remote workforce means your employees cover the costs of their utilities, rent, Wi-Fi and more. Of course, many organizations provide a stipend or increased pay to make up for this cost. Still, allowing employees to work remotely cuts costs for the organization overall. Global Workplace Analytics found U.S. employers can save $11,000 per year on average by allowing employees to telecommute just 50% of the time.
5. Reduced company carbon footprint
Cutting costs isn’t the only benefit of cutting out an in-person work environment from your company’s list of assets. One study found that those who work remotely can reduce their carbon emissions by 54%. A lot of this is due to cutting out a commute from your employees’ days, but other factors contribute as well, especially around electricity usage and heating and cooling. Eliminating an office eliminates the need to heat and cool the office, which cuts down significantly on an organization’s carbon footprint.
Reducing your organization’s impact on climate change is also good for your company’s reputation and recruiting. The Wall Street Journal reports 55% of Gen Z candidates and 54% of millennial candidates say they look into an organization’s environmental impact and policies before accepting a job from them.
6. Improved customer relations
Employers who allow their employees to work remotely also see bumps in customer satisfaction, which can also increase profits. There are multiple ways offering remote work increases customer satisfaction. For starters, remote customer service agents can offer support in more time zones, offering customers greater access to support on their terms. Furthermore, remote workers are more likely to be satisfied with their jobs and their organizations, which translates into more positive customer support interactions. Remote workers have more time to focus on their work as opposed to commuting or facing office distractions, which means customer service agents can better focus on the customer.
Finally, companies that cut costs and wasted time by having a remote workforce have more money and time to invest in customer experience upgrades. This includes a better website or app, more customer service agents and more personalized marketing.
7. Extra time from employees
One of the most attractive features of a remote workforce for organizations is how much more time remote employees spend on work than in-office workers. A study by the National Bureau of Economic Research (NBER) found that of the 72 minutes employees saved from skipping a daily commute, 40% of that time went back to their employer. This adds up to more than two hours per week. Other studies have shown remote workers tend to stay logged in longer than their in-office colleagues, with companies like Microsoft reporting remote work increased weekly work hours by 10% across their workforce.
8. Streamline communications
While remote work means employees can’t easily stop by each others’ desks to have a quick conversation, it can actually streamline communication in a few ways. Most notably, working remotely means employees rely more on digital messaging channels which allow asynchronous communication and keep a record of conversations for future reference. Employees may also be encouraged to communicate only when it’s necessary, rather than stopping by a desk or holding a meeting for small matters.
9. Futureproof operations
One of the takeaways from the COVID-19 pandemic was that companies already prepared for remote work fared better than companies that weren’t when the lockdowns started. While some businesses are trying to decide if they should further embrace remote work or go back to having employees work in the office, it’s clear that having the option of remote work will help companies be prepared if the need should arise in the future.
Get the full benefits of a remote workforce with ActivTrak
Every organization is different, and not everyone can successfully implement remote work policies for their employees. But with the right tools, your organization can start seeing the benefits of remote work almost immediately.
Find ways to support your remote workers with ActivTrak. Our remote workforce management platform allows you to gain insight into how, when and where employees work their best, plus it provides insights into what processes or technologies may be holding you back.
Get a free demo of ActivTrak today to see how it can help your organization get the most out of a remote work environment.
