The COVID-19 pandemic accelerated a shift to hybrid and remote work that many business leaders saw as inevitable. There’s a lot of data about the uptake and effectiveness of ‘going remote’, and the message is overwhelmingly positive.
But we’re focused on reducing costs. So let’s zero in on the costs and benefits of remote work.
1. Companies can save $11,000 per employee
Transitioning to 100% remote can save over $10k in overheads.
By eliminating the overheads associated with physical office spaces, such as rent, utilities, and maintenance, businesses can substantially reduce costs. This substantial figure underscores the economic advantages of remote work, beyond its well-documented flexibility and employee well-being benefits.
2. Employees save 72 minutes per day
Eliminating the commute gives people an extra hour and change, which they can use how they like.
This additional hour and change daily translates to more than just time; it signifies the freedom for employees to allocate those saved minutes to personal pursuits, relaxation, or even additional work tasks.
Over time, this accumulates to a significant boost in employee morale, overall well-being, and life balance, emphasizing that the advantages of remote work extend beyond just financial savings and into the realm of enhancing the quality of life.
3. 52% of workers would take a pay cut
The allure of remote work extends to the very heart of employee compensation preferences. A revealing insight shows that 52% of workers are inclined to accept a pay reduction in exchange for greater work flexibility. Specifically, more than half of the workforce considers a 5% reduction in their salary a fair trade for the luxury of flexibility.
Even more strikingly, almost a quarter, or 23%, are prepared to forgo as much as 10% of their earnings for this privilege. This underlines the evolving priorities of the modern-day worker, emphasizing that the intangible benefits of remote work, such as work-life balance and flexibility, are becoming increasingly valuable, sometimes even surpassing monetary compensation in perceived worth.
4. Workday analytics enables remote teams to scale
In the era of digitization and data-driven decision-making, workday analytics has emerged as a potent tool for businesses, especially those with remote teams. Such analytics provide real-time productivity data coupled with user-friendly dashboards, equipping companies with invaluable insights.
For rapidly expanding businesses like upUgo, these tools are indispensable. They’ve effectively harnessed the power of these analytics to scale their 100% remote team. Not only does this facilitate growth, but it also strategically manages and keeps overhead costs in check.
The fusion of real-time analytics with remote work thus represents a dynamic synergy, propelling businesses forward while maintaining financial prudence.
5. Unproductive time can decrease by 50%+ at home
Real-world data from Time Doctor users shows that people are more productive at home, saving the company big bucks on lost time.
6. Engaged employees are 23% more profitable
Giving employees the flexibility they’re asking for is good for business, boosting productivity and profits while decreasing churn.
Businesses that want to stay competitive must embrace hybrid and remote work models. Of course, there are also some costs associated with hybrid and remote work, such as providing employees with the right technology and managing remote teams. However, these costs typically become insignificant when weighed against the accumulated savings and productivity gains.
Managing remote and hybrid teams
Remote work isn’t a trend. It’s just…work. However, managing distributed teams is a new playing field for many experienced and respected business leaders. In our view, technology that eliminates communication barriers and fosters collaboration across time zones is the single most important investment when transitioning to a 100% remote workforce.
The right technology
Productivity analytics software is up there with laptops, smartphones and cloud computing solutions as an essential enabler for decentralized work. Being able to track and measure productivity in a flexible setup is as important for employee wellbeing as it is for managers who want peace of mind that their people are productive.
The right message
Remote employees need clear expectations about their work. Using project management software to orchestrate work, and productivity analytics to measure the resulting effort, ensures alignment between managers’ expectations and employees’ deliverables.
Regular communication
Take your pick of collaboration tools; by now there should be no question that remote teams can communicate instantly, chat face-to-face from across the globe, and collaborate on files. But managers need to communicate about more than the task at hand. Regular wellbeing and productivity check-ins help remote employees feel connected to their team and valued by their organization.
Technology, strategy and communication work together to build trust among remote teams. Implementing Time Doctor provides companies with the necessary tools to do this, so remote and asynchronous work can be a permanent option.
When leaders have the confidence that their remote teams are productive, they have the confidence to offer more flexibility, which in turn gives top talent confidence in the company’s future.
Carlo Borja is the Content Marketing Manager of Time Doctor, a workforce analytics software for distributed teams. He is a remote work advocate, a father and a coffee junkie.