According to studies, remote work can be a solution to a couple of significant problems, namely, low productivity and rising inflation. As per research conducted by the National Bureau of Economic Research, remote work is putting a brake on salary growth pressures, and thus, helping to reduce the inflation rate.
If you are running a business and weighing up the pros and cons of allowing remote work, this article might provide you with some valuable insights. Continue reading to find out how and why embracing remote work can be advantageous for your company.
How can remote work contribute in tackling inflation?
By allowing employees to work remotely, employers can mitigate the pressure of increasing wages and thereby contribute towards curbing inflation. To put it simply, remote work provides workers with enough flexibility to accept a comparatively lower salary. According to a survey by the Society of Human Resources, employees would require a 20% hike in their salary if they were asked to return to the office.
A recent survey of more than 3,000 employees working for top tech companies like Microsoft, Google, and Amazon demonstrated that given a choice between working remotely or getting a salary hike of $30,000, most workers would opt for remote work.
In a nutshell, remote work facilitates the reduction of labour costs, ultimately resulting in a decline in the inflation rate.
What are the advantages of remote work for both organisations and employees?
An estimate suggests that the yearly cost of employing a staff member in the office is around £18,000, which includes various costs like office rent, insurance, maintenance, cleaning services, furniture, stationery, and more.
Since the majority of these expenses are not associated with virtual offices, companies are likely to save a significant amount of money if they switch to remote work.
Studies have revealed that by working from home, individuals can potentially save up to approximately $12,000 per year, thanks to the reduced expenses incurred on items such as fuel, clothing, and food.
What are the reasons why companies are not offering the possibility of full-time remote work?
Numerous companies believe that having their staff physically present in the office can boost productivity, enhance team-building and foster better interpersonal relationships amongst employees. These assumptions, however, lack actual evidence.
Studies have indicated that remote workers are equally, if not more, productive than their in-office contemporaries. Moreover, there is evidence to suggest that telecommuters find their jobs to be more fulfilling than office-based employees.
What are the benefits of implementing remote work in your business?
To start with:
- Remote work can lead to cost savings on expenses like rent, utilities, and more.
- Most employees would be willing to accept a lower salary if they are offered the option to work remotely while enjoying flexible working arrangements. Similarly, some may opt for a lower salary in exchange for a flexible work schedule compared to the conventional office model.
- Companies situated in remote locations need not worry about the shortage of skilled IT personnel as the nature of remote work enables them to draw from a global talent pool without any geographical limitations.
- Lastly, remote workers demonstrate increased job satisfaction and productivity, consequently resulting in better retention rates for businesses that employ them.
In conclusion, remote work is not a passing trend.
Given that an increasing number of companies are recognising the benefits of remote work, it would be a wise decision to make the transition to this work model. Remote work offers advantages to both employers and employees, such as the potential to buffer against the impact of inflation. Many top IT companies have already implemented this policy and are seeing positive results. Therefore, it is advisable to contemplate and embrace remote work sooner rather than later.
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