Money Saved From Telecommuting
On average, if a company’s workforce were to work from home for half of the year, a company could save an incredible $11,000 per employee. On the other side of the equation, the employee would be saving anywhere between $2,000 on the low end and $7,000 on the high end over the same period of time. The company’s savings can be attributed mostly to the lowered overhead costs associated with working from home instead of at a commercial real estate location where the business owner would then be responsible for electricity, internet, temperature control, office space, and office supplies. As for employees, the saved money would come mainly from the cost of commuting and the added costs of purchasing lunches, coffees, and workplace attire. If work from home was implemented across the United States, the net savings would be upward of $700 billion.
At the same time, it appears that employees are more productive working from home. In fact, a study conducted by Stanford University shows that employees are 13% more productive when telecommuting in comparison to working in an office. Considering these factors, president of Global Workplace Analytics, Kate Lister believes that the trend of working from home is likely to continue even after the pandemic wanes, with her logic being that, “The biggest holdback against remote work for the past 20 years has been middle managers who didn't trust their employees to do it and the biggest difference between managers who support it and those who don't is those who have done it.”
Working from home has been a necessity over the past several months due to the COVID-19 pandemic; however, it is proving to be a deeply effective business practice for many companies in comparison to regular in-office working. Working from home has shown to create more productive employees and business owners, saving tens of thousands of dollars per employee every year. On the other hand, employees are also saving thousands of dollars as well, creating a mutually beneficial situation between company and worker. Considering that workers are more efficient and companies and their employees are saving money, it looks like working from home will continue to be a major trend in the business world for a long time to come.
About the Author
Tom Price is a writer focusing on Entertainment and Sports Features. He has a degree from NYU in English with a minor in Creative Writing. He has been previously published for Washington Square News, Dignitas, CBR, and Numbers on the Boards.