Here’s How Much Money Your Business Can Save: Thanks To Remote Work
“The pace of change has never been this fast.”
2020 caused a veritable revolution in the global workforce. The pandemic kick-started the much-needed change to the orthodoxy 9-to-5 work environment. In just a span of a few days, most people were forced to adjust to the new way of living and working.
While the uncertainty was unsettling, the sudden pace of change allowed companies to reimagine and reevaluate the way they run companies. They finally had a chance to witness remote employees accomplish most tasks without a significant decline in quality or productivity.
Most enterprises adopted the new way of work by leveraging technology. Technologies such as audio and video conference calling enabled remote working ages ago, but not many companies used them until 2020.
Many organizations had some form of reluctance to virtual collaborations. But now that they are familiar with the world of conference calls, the way they collaborate will never be the same again.
In the coming years, the conference calling technology will enable the hybrid-work model and help companies save thousands of dollars.
How Much Money Can Your Business Save?
According to Global Workplace Analytics, companies can save approximately $11,000 per half-time remote employee each year.
Most of the savings are estimated to result from increased productivity, reduced real estate costs, and turnover rates. Let’s have a better look at the factors that can save your company’s budget.
Real Estate Costs
Rental properties in most cities cost an arm and a leg. One of the easiest ways organizations can significantly reduce their rental operational costs is by encouraging remote work. When more people work from home, management can opt for smaller office spaces that don’t cost as much.
An excellent example of this is Ctrip, a Chinese travel agency that saves almost $2,000 per employee on rent alone.
American Express and Dell are two other great examples.
American Express introduced something called a BlueWork program to encourage flexible working amongst its employees. This policy worked wonders for them as it increased productivity and helped them save $10- $15 million annually in real estate costs.
Dell, on the other hand, similarly saves around $12 million a year on real estate just by offering its employees flexible work options.
Here are some more examples of companies saving millions thanks to remote work:
- IBM reduced its real estate costs by $50 million
- Sun Microsystems saves around $68 million a year
- McKesson saves $2 million a year
- Aetna reduced its office space to save around $78 million per year
Now that’s a lot of money that companies are saving just by adapting remote work policies.
But the savings are not only thanks to rental space. Organizations are saving huge chunks of money on a lot of other operating costs, including utility bills, maintenance costs, food expenses, and more.
A new-age HR policy can literally flip the profit and loss statement of a company. 🤯
Reduced Turnover
Many companies that have implemented remote work policies have experienced a decrease in employee complaints and overall turnover.
According to a Stanford study, companies that offered remote work options saw a 50% decrease in attrition rates.
Why?
Because employees felt less distracted and stressed while working from home.
Increased Productivity
Many companies think that remote workers are less productive due to their personal commitments.
But the data shows otherwise.
A two-year study conducted by Great Place to Work identified that working from home is just as productive as working from an office.
People are more productive working at home than people would have expected. Some people thought that everything was just going to fall apart, and it hasn’t.
-Mark Zuckerberg
Thanks to remote work, employees save time and money from long commutes. Sun Microsystems’ identified that remote employees spend 60% of the commuting time they saved performing work-related tasks.
Studies have also shown that remote workers work far more efficiently in the home environment. The office environment is actually far more distracting than what the management thinks. So much so that each year organizations lose $600 billion due to workplace distractions.
Overall, most of these statistics confirm that remote work is beneficial for organizations. If your organization doesn’t have flexible HR policies, it might be time to consider them.
Enabling Remote Staff — The Power Of Conference Calling
From widening the scope of hiring to reducing costs and enhancing productivity, remote staffing comes with a multitude of benefits.
However, on the flip side, it comes with a few challenges as well.
One of the most significant challenges is communication.
The lack of face-to-face communication and in-person interactions in remote work often acts as a barrier to communication. However, this challenge can quickly be addressed.
Technology now allows people to connect anytime, anywhere, to anyone in the world, from almost any device. This is dramatically changing the way people work, facilitating 24/7 collaboration with colleagues who are dispersed across time zones, countries, and continents. -Michael Dell
Technology has a solution for all problems if one knows where to look!
In the absence of in-person communication that comes with remote work, companies need to use technology to enable real-time collaboration.
As of today, they can do so with simple audio and video conference calling solutions and even unified communication platforms. With this technology, companies can facilitate easy and productive conversations from anywhere in the world.
The future of the business workplace is based on that. And the issue of communication can no longer prevent companies from employing remote staff.
For most organizations, a simple conference calling technology is all that is needed to save millions of dollars each year. Check out our website to know more about conference calling solutions that can save you those millions of dollars.
