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How Work-From-Home Arrangements Save Companies so Much Money by Cynthia Bassett Hartwig

cynthiabassetthart

Updated: Oct 3, 2024

Why Some Workers Are More Productive at Home

Research on Productivity When Working from Home

Who Tends to Be More Productive at Home

Who Tends to Be Less Productive at Home

Employee retention can significantly improve when employees work from home, thanks to several key factors:

Benefits of Remote Work on Retention

Research Findings

Challenges and Considerations

While remote work can improve retention, it’s important to address potential challenges such as feelings of isolation and burnout. Regular check-ins, virtual team-building activities, and clear communication can help mitigate these issues1.

Significant savings for the company:

The percentage of revenue a company can save by allowing employees to work from home varies depending on several factors, including the industry, company size, and the extent of remote work implementation. However, some general insights can be drawn from research:

Estimated Savings

Percentage of Revenue

While the exact percentage of revenue saved can vary, some estimates suggest that companies can save between 5% to 15% of their annual revenue by implementing remote work policies2. This includes savings from reduced real estate costs, lower operational expenses, and increased employee productivity.

Factors Influencing Savings

  • Industry: Tech companies and other industries with a high proportion of remote-compatible jobs tend to see higher savings.

  • Company Size: Larger companies with more employees can realize greater absolute savings.

  • Extent of Remote Work: The more employees work remotely, the higher the potential savings.

 

 In summary, many workers are more productive at home due to fewer distractions, flexible schedules, reduced commute time, and a comfortable environment. Research shows significant productivity increases, with studies indicating boosts of 6% to 13%. Self-motivated individuals, professionals in focus-intensive roles, and experienced remote workers tend to thrive, while socially driven workers and those in collaborative roles may struggle. Remote work also enhances employee retention by improving job satisfaction, flexibility, cost savings, and well-being. However, addressing challenges like isolation and burnout is crucial. Overall, companies can save significantly, potentially between 5% to 15% of their annual revenue, by implementing remote work policies.




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