What Are the Advantages of a Work From Home Policy?
The pandemic completely changed the way businesses operate. The strict lockdown restrictions forced them to adapt to remote working. Before the crisis, only 5% of employees in the United States were working from home, however, after the pandemic struck, almost 88% of businesses all over the world allowed the workforce to work remotely.
Since this is the new normal, even organizations that were not in favor of it are now adopting this business model. It is not easy to collaborate with employees that are not working in the same office space but the opportunity of attracting candidates from all over the world is an advantage that cannot be ignored. Organizations must tailor their talent acquisition initiatives to attract global talent.
The Impact of Remote Work on Businesses
A fully remote working policy is now a reality for all businesses across the United States. Even though most organizations have welcomed this policy with a lot of enthusiasm, others allowed it due to the strict social distancing orders. However, whether it is effective or not is debatable.
Remote work is the new trend. According to the Future Workforce Report, fully remote employees represent nearly 27.7% of the workforce as opposed to almost 20.4% of those who follow a hybrid model. This shows that this business model is adding value to businesses by increasing employee morale, productivity, and retention levels and reducing costs. If it did not, most businesses would have shifted back to normal office routines by now. Moreover, a complete work-from-home workforce may not be suitable for all industries, but most businesses are not finding this shift as painful as they thought it would be.
Benefits of Remote Work Policy
It is up to organizations to decide which business model works for them; fully remote, hybrid, or in-office, but those who adopt a completely remote work policy gain many advantages. Let us have a look at some of them.
- Higher Employee Morale
Businesses that follow the remote work model benefit from higher productivity and employee engagement levels. Working from home allows employees to have more time to spend with their families and enjoy a much more flexible schedule. This increases their satisfaction levels causing them to perform better.
Moreover, it has become important for organizations to keep employees engaged to retain them. When they feel the business values their time, they tend to reciprocate by working harder to achieve business goals and targets.
- Increased Employee Retention
These days’ employees prioritize a good work-life balance over monetary gains. A study shows that nearly three out of every four employees are ready to resign for a job that offers remote work. This means that businesses that do not offer this opportunity may miss highly talented individuals just because of this reason. However, by allowing remote work, they can benefit from higher retention and lower levels of employee turnover.
- Reduced Costs
When businesses allow employees to work from home, they do not need to invest in costly office spaces, furniture, meeting rooms, and equipment. Large organizations save millions by allowing executives to work remotely which increases their profits. Moreover, by avoiding these costs, businesses can have more resources on hand to reinvest in future products and reward employees after a performance appraisal process.
- Enhanced Team Productivity
Another great benefit of adopting a remote work policy is that the workforce and managers can accomplish more in less time. It takes so much time to commute to work daily. If employees spend this time in completing office work instead, they will be able to meet deadlines more quickly. Therefore, the conversion of commute time to production time can be beneficial for organizations. Moreover, working from home means fewer breaks, fewer sick leaves, and less time socializing with colleagues. This means employees can spend more time working.
The Last Word
Remote work increases employee productivity through work-life balance and employee engagement and reduces the operational costs of the business. Although work from home model tends to increase the profitability of a business, it is important to consider the hidden costs associated with it.
Moreover, the rising trend of working from home mostly has a positive impact on employees, organizations, and the overall economy. However, transforming the entire business model is not easy. It takes time to become comfortable with a new system.
Furthermore, some businesses that are opting for remote work are struggling to manage it. The landscape is constantly changing and what worked before may not work anymore. Therefore, they need to figure out where they are going wrong to improve their productivity.