Research suggests that remote working is helping to address two major issues: low productivity and an increasing inflation rate. A poll conducted by the National Bureau of Economic Research has highlighted that remote employment is curbing wage-growth pressures, consequently reducing the inflation rate.
Are you a business considering the potential benefits of introducing remote working? If so, this blog post may help you come to a decision. Read on to learn more about how and why embracing remote working could benefit your organisation.
How might remote work assist in addressing inflation?
Remote working could help to control inflation by reducing wage-growth pressures. In simpler terms, workers are more open to accepting a lower salary if they are given the option to work remotely. A survey conducted by the Society of Human Resources revealed that employees would demand a 20 percent increase in their salary if asked to return to the office.
A survey of over 3,000 respondents from major tech companies such as Google, Microsoft and Amazon has revealed that employees are more likely to choose to work remotely than accept a salary increase of $30,000.
Thus, remote employment helps decrease the cost of labour, which, in turn, helps reduce the inflation rate.
How is remote work benefitting firms and employees?
It is estimated that the average cost of employing an in-office staff member for a year is approximately £18,000. This figure takes into account such expenses as office rental, repairs and maintenance, insurance, stationery, cleaning services, furniture and fittings, and more.
As most of these expenditures are not linked with a virtual office, firms may gain considerable monetary savings if they migrate to remote.
Research has indicated that working from home can help individuals to save up to an estimated $12,000 per year. This can be attributed to a reduction in costs associated with items such as fuel, clothing and food.
Why aren’t more companies allowing their workers the option of working remotely full-time?
Many organisations presume that having staff present in the office can enhance productivity. Furthermore, they presume that encouraging employees to attend the workplace would foster a stronger team dynamic and facilitate more effective interpersonal relationships. Yet, there is no empirical evidence to support these hypotheses.
Research suggests that telecommuters are just as, if not more, productive than their office-based counterparts. Additionally, there is evidence to suggest that teleworkers have a higher job satisfaction than their in-office colleagues.
Then, why should your business embrace remote work?
To Begin with, though:
- Working from home may save money on rent, utilities, and more.
- Given the option to work remotely, the majority of employees would be willing to accept a lower wage in return for a more flexible working arrangement. Similarly, some may choose to have a more flexible work schedule in exchange for a reduced salary when compared to working in a traditional office setting.
- Businesses located in distant areas need not be concerned about the lack of qualified IT personnel. This is due to the fact that the nature of their organisation allows them to access a global pool of potential candidates, without any geographical limitations.
- Finally, remote employees report higher levels of satisfaction and output. Thus, businesses with remote workers may keep their retention rates high.
To sum up, telecommuting is not going away.
As more and more businesses are beginning to embrace the concept of remote work, it is a wise decision to transition to this form of employment. Remote work has several advantages for both the employer and employee, one of which is the ability to mitigate the effects of inflation. Several leading IT companies have already adopted this policy and are reaping the rewards. Therefore, it is highly recommended that you consider embracing remote work as soon as possible.
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