With over 4.3 million employees (3.2% of the workforce) now working from home, telecommuting is more popular than ever. Work from home policies allow individuals flexibility and freedom in managing their work-life balance, but does that always translate to increased performance?
As it turns out, the benefits are real and quantifiable:
A survey from Global Work-from-Home Experience found that out of 3000 participants, 68% said they are very successful working from home.
Work-life balance has increasingly become a key priority amongst the workforce. A poll of 1,500 revealed that 37% would take a pay cut of 10% if they could work from home. In fact, 36% would choose it over a pay raise! While Covid19 has forced the adoption of remote work programs, given the direct correlation between employee satisfaction and productivity, you might consider extending these programs to post the pandemic as well.
In addition to being productive, a happier or more satisfied workforce is less likely to look for other job opportunities. Losing a valued employee can cost an employer anywhere from $10,000 to $30,000 and recruiting and training a new hire could cost thousands of dollars more. Companies that offer a telecommuting option for employees have lower turnover. 95% of employers say telework has a high impact on employee retention. In a Stanford University study, employers who offered a work from home option had employee turnover rates fall by over 50%.
68% of millennial job seekers said a work from home option would greatly influence their interest in working for a company. With a new generation comes new unique demands, and now there is no bigger priority than freedom while working. Of all the benefits that make a work environment fun, casual, and flexible such as regular social activities, casual dress code, free snacks, and drinks, etc., working from home benefits were the most important to young job seekers. Some employees are also willing to trade salaries in the place of working from home. One content writer negotiated to have a lower salary in exchange for not reporting to the office every Friday which illustrates the importance of remote work to the new generation of workers.
Full-time telecommuters can save an estimated $4,000 or more each year simply by working from home. This should not come as a surprise – imagine saving on commuting to work every day, your obligatory pick-up coffee each morning, the professional wardrobe. Working from home saves your employees money.
Telecommuting helps an employer save money too. According to Global WorkplaceAnalytics, nearly 6 out of 10 employers identify cost savings as a significant benefit of telecommuting. By increasing its telecommuting workforce from 9% to 47%, insurance company Aetna cut real estate costs by $78 million. A typical employer can save an average of $11,000 per half-time telecommuter per year. The primary savings are the result of increased productivity, lower real estate costs, reduced absenteeism and turnover, and better disaster preparedness.
You can even utilize a “Telework Savings Calculator-Lite” to estimate the potential employee, employer, and environmental impacts of remote work at your organization.
Statistics show that 82% of telecommuters reported lower stress levels than those that do not. 80% report higher morale, and 69% reported lower absenteeism. Less stress leads to happier lives and happier lives lead to more productive employees. It is a virtuous cycle that you’d rather be part of than not.
More than simply a workplace trend, the concept of working from anywhere at any time is the future state of work. It’s time for employers and employees to embrace the new world of work and to consider the benefits of working remotely.