Running a business can be challenging, particularly when it comes to dealing with high rental costs, disengaged workers and unexpected sick days. However, working from home can be an effective solution to these issues; let’s explore some of the ways that remote employees can help to save costs for your business.
This year has been a lesson in the effectiveness of remote working. The spread of the virus accelerated the transition to telecommuting, which initially posed a challenge to those who were unprepared. However, most have managed to adjust to the new system and now have a positive outlook on the benefits of a distributed workforce. Several prominent digital organizations including Twitter, Apple and Square have given their employees the option to work from home, proving that it can be a successful model.
The advantages of remote working for both employers and employees are evident, with increased flexibility and efficiency being amongst the most noteworthy benefits. However, it is the cost savings that businesses have experienced as a result of their staff being able to work from home which has been the most noteworthy benefit.
Here Are 11 Ways in Which Your Business Might Save Money by Making Use of Remote Workers.
The increased output of employees who are able to do their jobs from home.
Despite the ongoing debate regarding the relative productivity of remote and in-office employees, the evidence consistently shows that individuals are more effective when given the chance to work without distractions. Unfortunately, the majority of workplaces in the United States have open floor plans, resulting in a 15% decrease in productivity. According to the TeleworkResearchNetwork, this is costing businesses an estimated $600 billion annually. Whilst the answer to the question of how much more productive remote employees are than their office-based counterparts is “it varies,” a CoSo Cloud study found that those working from home were 77% more productive than those in an office environment.
Attendance problems are mitigated when employees have the option of working from home.
A recent report by CoSo Cloud has revealed that remote workers take 52% fewer sick days than those in the office. This finding is further corroborated by research conducted by Softchoice, which revealed that 57% of remote staff still complete tasks while on vacation or when ill. It appears that remote employees are motivated to address their workload in a timely manner, and are equipped with the necessary tools to work away from their desks.
Reduced employee turnover due to telecommuting
According to a Gallup survey, remote employees had a higher engagement rate (32% compared to 28%) than their in-office counterparts. It is estimated that employees who are able to work remotely could save an average of £5,000 per year, which can make them more loyal to their employer. Furthermore, a study conducted by an insurance company found that when they allowed certain staff to work remotely, there was a decrease in attrition rates to zero and a rise in productivity of 18%.
Remote work saves healthcare expenditures
Results from a survey conducted by FlexJobs and Mental Health America (MHA) suggest that those who are able to do their job from home are less likely to become ill than those who work in an open workplace. Of the 800 workers questioned, 48% of those with remote working arrangements reported that their work-life balance is outstanding, compared to just 36% of those without remote work arrangements. This makes perfect sense, as when stress is reduced and morale is improved, physical health is naturally enhanced. As a result, small business owners may be able to save money on health insurance by investing in remote working for their employees.
Reduction or elimination of all expenses associated with workplace injuries
As a business owner, it is your responsibility to ensure the safety and wellbeing of your employees in accordance with the Occupational Safety and Health Act (OSH Act) of 1970. Unfortunately, despite these regulations, workplace accidents and injuries remain a significant financial burden to US companies – the Liberty Mutual Workplace Safety Index 2023 estimates that serious workplace injuries cost US firms a staggering $59.9 Billion a year. Furthermore, it is your responsibility to ensure that your employees are properly covered by workers’ compensation insurance; however, this does not apply to remote employees unless there are exceptional circumstances.
No need for commuting perks with a remote workforce.
In order to assist their employees to commute to and from work, several organizations are now offering commuter benefits. This could be seen as a benefit by the company, or it might be a requirement of law in the District of Columbia, New York, and San Francisco. The Internal Revenue Service has declared that, commencing in 2023, employees can receive up to $260 per month in pre-tax funds to use on transportation. This can be a great help to organizations with remote staff, potentially allowing for a monthly savings of $2,600 for a small remote organization with 10 workers.
In addition to saving money on expensive office equipment, BYOD also
There is no definitive answer as to what kind of technology should be provided for remote workers. Employers may choose to equip them with the necessary tools for working from home, such as computers, telephones and stationery. Alternatively, a monthly allowance may be provided. An increasingly popular option is to allow staff to bring their own device (BYOD), with a Cisco survey showing that 64% of employees already do this and 89% of companies accept it. It has been estimated that BYOD could save enterprises in the United States up to $3,150 per employee per year.
Spending less on business continuity is one of the benefits of remote employment.
In the face of disaster, any reputable organization should have contingency plans in place to ensure its survival. This is especially true when all of the employees are based in one location, as the risk is heightened in the event of any disruption, from a snow day to a more extreme terror attack. Although safety measures such as security, IT backup and appropriate fire safety equipment are still needed for remote working, the additional costs of earthquake protection, CPR training and insurance for a large audience are not necessary. Working from home is an effective way to protect personnel from harm.
Hiring the best possible staff is much easier with remote work.
With the rise of remote work, businesses can now benefit from an increased ability to find and hire excellent employees with the right skillset and attitude to align with their organization. This comes at the fraction of the cost when compared to the loss of up to $7,000 when hiring the wrong individual – a loss which no business can afford. According to Small Business Trends, it could cost up to 27 times as much to fill an empty job with the incorrect individual. Hiring managers in all sectors, but especially in technology, have been struggling to find the right personnel due to the shortage of talent. The Robert Half Technology Salary Guide for 2023 highlights this issue, stating “the continuous lack of technology personnel is no longer simply a nuisance for many firms, but is fast becoming a substantial commercial challenge.” Fortunately, this commercial challenge can be easily overcome through recruiting from a wider pool of candidates, including those located in other locations. This can help businesses access a greater range of potential employees and ensure they have the right person for the job.
The ability to work from home may protect companies against the perils of offshore.
Outsourcing can offer a number of benefits, but it is important to be aware of the associated risks before committing. Remote jobs can be a great way to access offshore services without having to set up a business in a foreign country, or worry about the potential geopolitical or bureaucratic issues. However, it is important to be aware of the potential hidden costs of outsourcing, as these can be as much as 65% higher than anticipated. Therefore, it is essential to carefully consider whether or not to go ahead with a business process outsourcing (BPO) project.
If you want to save money as a company, hiring full-time remote global employees is the best way to do it.
A recent survey conducted by Robert Half Technology has revealed that a staggering 44% of Chief Information Officers have experienced difficulty in recruiting top talent, due to their inability to offer competitive salaries. It is worth noting that salaries in the IT industry are among the highest across the nation, and can vary considerably depending on the geographical location.
Earnings were determined using Payscale.
Take a look at what other countries pay their software developers to see how that stacks up.
Payscale was used to determine salaries.
It is encouraging to note that the average income in the United States is amongst the highest in the world, as reported by the Organization for Economic Co-operation and Development (OECD). This indicates a strong economy and presents a great opportunity for those looking to benefit from the gap in wages between the US and other countries. By utilizing labor and resources from other parts of the world, it is possible to find qualified workers at a fraction of the cost than it would cost in the US.
Poland, South Korea, Italy, Spain, New Zealand and Finland all boast highly acclaimed educational systems, making them an excellent choice when it comes to sourcing potential employees.
It is true that some may object to the idea of paying employees in other regions of the globe less than the going rate in the United States, due to its relatively high cost of living. However, it is worth noting that there are many countries with a high educational quality and low average earnings, where the cost of living is much lower than in the United States; examples of this include Sweden, Canada, Germany, South Korea, Italy and Spain. Therefore, paying employees in these countries fairly does not necessarily mean paying them the same rate as in the United States.
It is widely recognized that remote employment is increasing at a rapid rate, even in times of economic uncertainty. From the perspectives of employee satisfaction, long-term environmental sustainability, and financial savings for companies, the advantages of remote working are undeniable.
We can help you find and employ top foreign tech talent in under two weeks, saving your company a tonne of money.