Today, more employees are working remotely than ever before. In fact, it is predicted that by 2020, around 30% of employees will be freelancers, outsourced employees, or remote workers who spend the majority of their time working from home.
Considering the benefits that come with working remotely, particularly avoiding the hassle of the daily commute and more flexible working hours, it is no wonder why more and more people are starting to consider this option. Although the benefits for the employees are quite obvious, the same thing cannot be said for employers. This article will outline the advantages of remote working for employers in detail.
1. Higher Productivity and Less Absenteeism
As mentioned, when employees are allowed to work from home, they can avoid a dreadful daily commute. This could be beneficial for your business as much as it is for your employees. The overall wellbeing of your workforce has found to be linked with higher productivity and lower absence rate.
By spending hours commuting to work every day, your employees are unnecessarily wasting a lot of their time. However, when working from home, they can start off their day without going through the stress of commuting, and with a clear head and a fresh mind. As a result, your employees will be more motivated and happier to take on their tasks of the day.
2. Better Employee Retention
One of the most common challenges faced by small businesses is losing employees faster than they can replace them. That is because small businesses tend to fall short when it comes to salary and employee benefits, which is why it is imperative that they make the most out of what they do have.
One of the things that small businesses can offer their employees is the flexibility and freedom that appeal to many of them. By being allowed to work home, employees with children can have the flexibility they need, and other employees also get to benefit from a great work-life balance. This can lead to improved employee retention that small businesses desperately need.
3. Access to a Broader Range of Candidates
The popularity of remote working can be contributed to younger generations who are now equipped with technologies to communicate with ease, regardless of where they are in the world. For this reason, young employees desire workplace flexibility, and it is one of the most crucial factors that they consider when looking for a job.
This means that you can attract these young and skilled employees to work with you by offering the flexibility that they are looking for. Also, when employees are allowed to work remotely, you can expand your pool of applicants to the ones that live far away from the office. This can be especially useful in areas where specific skills and expertise are extremely scarce.
4. Lower Office Space Costs
It is no secret that renting an office space can be very expensive. However, if you allow your employees to work from home at least a few days a week and operate a rotating system, you could get away with a smaller office. This means that you get to save more money on your rent.
5. Lower Wage Bill
This may not be true for everyone, but most employees would choose the flexibility and ability to work from home over a pay raise. Considering the cost of commuting, a salary increase does not make much of a difference than being allowed to work from home. Therefore, instead of rewarding a good-performing employee with a pay increase, you could let them work from home. This will help reduce your wage expense as well as improve the cash flow in your business.