While many of the effects of the COVID-19 pandemic have eased, the traditional workspace is still grappling with the seismic shift toward remote work. According to Forbes, as of 2023, 12.7% of U.S. workers were fully remote, and 28.2% were hybrid. As many as 98% want to work remotely at least part of the time.
Many employers are still considering whether to have employees return to the office or embrace remote work. It is common to see headlines of employers asking or demanding that their workers return to the office. When employers are evaluating their remote work policies, it is useful to know what tangible benefits they can see if they create a remote work environment.
These benefits typically don’t require fully remote work policies. Often, hybrid policies allow employers to reap most of the rewards. In such an environment, employers can expect to see tangible benefits in the following areas: saving money, boosting productivity, and increasing employee retention.
Saving Money
While savings may vary from company to company, a typical company can save around $11,000 per year for every employee who works from home at least some of the time, according to Global Workplace Analytics. These savings come from reduced costs in overhead, real estate, transit subsidies, and continuity of operations. Also according to Global Workplace Analytics, during the height of the COVID-19 pandemic, when remote work was more widespread, U.S. employers saved an estimated $30 billion per day because employees were working from home.
Employers can expect noticeable savings by eliminating overhead costs associated with physical office spaces, such as rent, utilities, and maintenance. For many, this benefit alone makes remote work an attractive prospect.
Boosting Productivity
In general, remote work reduces distractions from office politics, background noise, and long or numerous meetings. It also eliminates commuting, which grants employers access to a wider pool of employees and saves workers time. These benefits can lead to more productive employees because they are more rested and less distracted.
According to a 2020 FlexJobs research survey, workers thought they were more productive when working remotely. When asked why, respondents cited fewer interruptions and a quiet work environment.
Additionally, a study by Stanford of 16,000 workers over nine months found that working from home increased productivity by 13%. Employees explained that this was because they were able to take more calls per minute, largely attributed to a quieter and more convenient working environment. In addition to increased productivity, Stanford’s study also found improved work satisfaction and reduced attrition.
Increasing Retention
Remote work policies can lead to higher retention rates because employees are often happier. According to Global Workplace Analytics, 95% of employers say remote work has a high impact on employee retention.
The National Library of Medicine found that remote work policies improve employee happiness because they lower stress and provide more time for hobbies and interests. Additionally, they provide employees opportunities for, among other things, more physical activity, healthier eating habits, less exposure to illness, and customizing their workspace to their liking.
It is important to remember that remote work environments do not work for every organization, and whether to implement one should be considered on a case-by-case basis. Employers Council’s Employers Guide to Managing Remote Employees can answer basic questions if your organization is considering a remote work policy. If you are a Consulting or Enterprise member, you can contact us for guidance on how such a policy would impact your work environment.
Mark Decker is an attorney for Employers Council.