56% of full-time US employees — or over 70 million people — say they can do their jobs from home. As an employer, you might wonder if remote work creates a better and happier team?
In this article, we look at the benefits of remote work for employers (and employees) while addressing the challenges that come with it.
Benefits of remote work for employers
Remote and hybrid work can help employers optimize productivity, reduce overhead costs, and attract top global talent. Here are some benefits of remote work for employers.
Cost efficiency
With remote work, companies can save costs on office space. With employees working from home or alternative locations, companies can downsize their office footprint and save money on rent, utilities, maintenance, and office supplies. Some companies that shift to remote work save as much as 10,600 USD per employee each year.
Increased productivity
77% of employees who work remotely at least a few times per month are more productive . Without the distractions of a traditional office environment, employees can often focus better on their tasks and accomplish more in less time.
Allowing your employees to work remotely also allows for more flexible work schedules. This way, employees can work during their most productive hours.
Increased employee satisfaction and retention
Offering remote work options can significantly boost employee satisfaction and retention rates . In fact, companies that offer remote work experience a 25% lower turnover rate.
Working remotely also gives employees greater flexibility and a better work-life balance , which means reduced stress levels and higher job satisfaction. Employees who are happy with their jobs are more likely to stay with their company, which reduces the costs of hiring and managing employees .
Broader talent pool
Companies that embrace remote work can recruit talent from all over the world, no matter where they’re headquartered. In fact, 60% of HR professionals say the number of quality applicants per open role has increased since they welcomed remote work.
For example, WordPress co-founder Matt Mullenweg said : “In Silicon Valley, the big tech companies fish from essentially the same small pond or bay. A distributed company can fish from the entire ocean. Instead of hiring someone who grew up in Japan but lives in California, you can hire someone who lives, works, wakes up, and goes to sleep wherever they are in the world.”
Positive environmental impact
Remote work can help reduce a company’s carbon footprint. Fewer employees commuting means less traffic congestion, air pollution, and energy consumption. In fact, COVID-19 lockdowns led to a 30–38% reduction in carbon emissions from commuting
Fewer employees in a physical office leads to environmental benefits . For example, the US could cut greenhouse gasses by 54 million tons per year by welcoming remote work.
Plus, sustainability is important to employees, as it gives meaning to the work they do. Over 50% of Gen Zs and millennials say they research a brand’s environmental impact and policies before accepting a job offer.
Competitive advantage in the job market
Nearly 50% of employees prefer working for an employer that offers remote and hybrid work. Offering remote work options can help employers attract and retain top talent.
Providing remote work options helps organizations appeal to more job candidates. For example, offering remote work options can be a part of a competitive benefits package for your team.
Less absenteeism
Remote employees can shape their schedules for a better work-life balance. This increased control over their time often leads to fewer instances of unscheduled absenteeism. A remote work policy also helps employees continue to work regardless of external circumstances like traffic and weather.
Diverse workforce
International hiring gives companies access to candidates from diverse cultures, backgrounds, and demographics. A diverse workforce can build a stronger company through different perspectives, experiences, and ideas. A diverse team also helps you reduce the risk of biases or oversights toward different cultures.
Expanded operating hours
Remote work helps companies operate across time zones. With a global team that works asynchronously , employers can experience quicker turnaround times on projects and tasks. Uninterrupted operations can be especially beneficial for the customer support, tech assistance, and e-commerce sectors.
Benefits of remote work for employees
Remote work provides benefits to not only employers but also employees. Here are some reasons why employees put so much value on remote work.
Flexibility and work-life balance
97% of employees emphasize the positive impact of flexibility on their overall quality of life. It's no surprise that flexible work arrangements are the third most popular reason people search for new jobs.
In fact, more than 60% of employees say they prioritize jobs that offer an improved work-life balance over those that promise higher pay. In contrast, only three out of ten favor better pay over a favorable work-life balance.
With remote work, employees can create a work environment that suits their preferences, comfort, and productivity. Flexible work arrangements also give employees more autonomy over their work processes and schedules.
Reduced commuting stress
Not having to commute to work is a key employee benefit of remote work. With remote work, employees reclaim lost time and don’t have to deal with commute-related stress .
Remote work saves people an average of 72 minutes on their daily commute. Respondents said they allocate 40% of this saved time to work-related activities, 34% to leisure, and 11% to caregiving.
Improved health and well-being
96% of employees believe that a remote or hybrid working arrangement best supports their mental health. Remote work also helps employees lead a healthier lifestyle by incorporating regular exercise, healthier eating habits, and better sleep patterns.
Cost savings
Remote work reduces the amount employees need to spend on commuting, meals, childcare, and even workwear.
Commuters in the US spend about 8,466 USD every year, which is about 19% of their annual income. In addition to transportation costs, employees working remotely can save money on eating out for lunch, clothes, and childcare services.
Challenges of remote work for employers
Supporting remote work can be challenging for employers. Here are some challenges of remote work for employers and ways to navigate them:
Communication challenges
71% of companies still have vague communication strategies for their distributed teams. Physical separation can easily lead to communication issues that, if left unaddressed, can hinder productivity and collaboration.
As a solution, establish clear communication channels, encourage regular video meetings, and use collaboration tools. Don't forget to make time to talk personally with your team members to check they are doing well personally and professionally.
Reduced team cohesion
Building a strong remote culture is not easy. 41% of people say remote work impacts how connected they feel to their coworkers.
As a solution, schedule regular team-building activities so your team members feel closer to each other. You can also consider occasional in-person meetups or retreats to strengthen employees’ personal connections.
Misaligned expectations
More than 50% of HR professionals have concerns about measuring performance for remote employees. Physical separation between remote employees and managers can make it challenging to gauge productivity.
S hift the focus from tracking hours worked to measuring outcomes and deliverables. Set clear performance expectations, establish key performance indicators, and use project management tools to track progress.
Distractions and a lack of focus
While remote work offers flexibility, employees can have a hard time focusing on work if their environment is filled with interruptions.
The most common distractions during remote work include social media scrolling (74.7%), household chores (71.6%), and online shopping (69.6%).
To create a productive remote work environment, set clear expectations for remote work. This can include certain work hours and communication protocols.
Well-defined guidelines can help employees structure their day and stay on track. You can also recognize and reward employees who consistently demonstrate productive remote work habits. This will motivate your remote team and maintain their focus.
Remote work has benefits for both employees and employers
Remote work not only benefits employers in the short term, but also sets the stage for long-term success and growth. A remote work model leads to higher productivity, access to a global talent pool, and improved employee satisfaction.
Chat with Remote today to find out how you can start building your global remote team.
