When it comes to the workforce, there are many pros and cons to working from home. Some people might think that not having a physical office space would lead to less productivity, while others might think that the lack of commute time would lead to more hours worked. In this article, we’ll take a look at some of the benefits of a work-from-home workforce.
Employee Satisfaction Rates are Higher With Work From Home Employees
A recent study has determined that the employee satisfaction rate is much higher for employees who do their jobs from home versus those who go into an office every day. Gallup found that 70% of employees reported being satisfied with working from home while only 45% were satisfied with their on-site job location. Work from home employees will truly work where they feel most comfortable, which could be from their home, while traveling, or living a van life. Work from home jobs are usually completed in the quiet of one’s property so there is less chance of distractions and interruptions when working with an employee who works from home. You will see an increase in productivity along with a higher quality of work.
What does this mean for your business? Many businesses, such as retail, restaurants, and service based companies can only operate in person, but businesses that have a higher number of in-office employees may see a benefit in this practice. If you have the ability to let some or all your staff complete their daily tasks from a remote location then you will surely see a boost in happiness among your employees and a decrease in turnover rates. Letting your employees choose where they feel most comfortable is paramount to maintaining a strong and consistent workforce. When you have a happy workforce, you will see a higher rate of employee retention, which creates an optimal operation.
Reduction in overhead costs.
Hiring staff to work from home means reduced overhead costs for your business which can make it very attractive to small business owners who are looking for ways to cut costs and increase profit margins. In addition, you will no longer have the expense of providing a work location as well as utility bills such as electricity, water/sewer, etc. This is not always possible for many businesses but those that can maintain a work from home workforce stand to see significant cost reduction over time.
Find Your Ideal Employee
Working remotely also has an added bonus in that you can hire employees from all corners of the world. What does this mean for your business? Work from home jobs allow you to hire qualified workers regardless of location, which is very attractive if you are looking for talented employees and they are not required to be on-site. This makes it much easier to find qualified individuals since you can find the exact type of employee with the most desirable qualifications for your open position. Remote employees can be sourced and hired at a fraction of the cost and time it would take to source someone locally. You are not stuck to a single geographical location to source your employees and you do not have to worry about compensating your new hire for moving expenses.
The Work/Life Balance
With work from home employees, you can give your employees a much more balanced sense of work and life because they will not feel the obligation to be physically present in an office location. Work from home jobs can be done at any time depending on the needs of the business and this means that individuals who have children or other family members at home may choose remote jobs so that they can be around their family. This means that they do not have to stress about issues such as who is going to get their kid on the bus or even the cost of daycare because these things may be able to be accomplished without outside help.
Additionally, when you do not have a commute, that is an extra hour or more that you can potentially add back into each day for other tasks or to get more sleep.
Additional Benefits For The Business
Work from home employees often work more hours than traditional office workers because there are no physical barriers between themselves and their work product. They have the work in front of them with full access to the information required, less barriers to productivity, less interruptions, and a general sense of freedom since they do not have to work within the confines of normal business hours. Work from home employees often report less stress compared to traditional office workers because the ability to complete all work tasks without distractions and interruptions make their daily tasks easier to manage and accomplish.
The Great Resignation of 2021 shows more employees are favoring a greater work/life balance and are migrating to employers who have adopted this company culture. Prior to the pandemic, average resignation rates held steady around 2.4% of the workforce. In 2021, that number increased to 3.0%, which may sound small, but is actually an increase of 945,000 workers and that number simply cannot be ignored. While the number as of this writing is approximately 2.8%, we are expecting to see a second wave of resignations and the number resignations to rise back to 3.0-3.2% as more and more business are fully reopening with a shift to 2.6% sometime between Q4 2022 to early Q2 2023.
At Gabel Management Consulting, we utilize a 100% work from home model. We do not have a physical location and all of our consultants either work from home or work at the client’s location. This model reduced our operating costs from a mid four digit expense to the low-mid three digits which allows us to pass the savings on to our clients. As a part of our internal growth plan, we are considering a small physical office for our teams to collaborate and to host client meetings, but will still utilize a work from home model.
We are currently recommending to our clients to either utilize a hybrid model where the employee has a say of their working locations and the amount of time spent in the office. Optimal pattern would be two non consecutive days in the office (Monday/Wednesday or Tuesday/Thursday) and three from a remote location.
Work from home can truly be a win/win scenario for all parties involved: the employer, the employee, and customers. If you feel you our your busines would benefit from assistance with the transition or would like to talk about your scenario with us, please contact us.