As the COVID-19 pandemic rages on, working from home has become a fact of life for many people in the US and worldwide. For jobs where it is possible, remote working has become a newly accepted norm. As many newly remote workers get a taste of this flexibility, it’s expected that the demand to work at home will rise.
Whether it’s on a part-time or full-time basis, employing remote workers can actually save your company a lot of money and increase employee satisfaction in the long run. But how do you save money exactly? Here we look at some ways that remote working can save companies money.
You can downsize your building
Companies have offices in prominent locations largely due to image and prestige, but these buildings can be very expensive to rent or buy. If a significant portion of your workforce starts to work from home, then it gives you the freedom to downsize to a smaller building.
In their recent operational finance explained blog, VersaPay explained how nearly 60% of a finance team’s day is spent on mundane operational activities. While much of this work can be automated, employees carrying out simple data entry tasks like this can usually do it from home without any trouble.
By renting a smaller building for your team, you’re able to save a significant amount of money while keeping your workforce happy.
You save money on overheads
On a similar note, less people working in your building means that you save money on bills and utilities such as water, heating, electricity, and more. If you’re able to downsize your office or just have fewer people in your office, then the resources your building uses up will naturally be lower, helping you to save cash.
You can also save money on services like catering and cleaning – the less people you have in your team, the less catering and cleaning you require!
Your tax burden may be reduced
Depending on where you live and how the tax system works, you may be able to take advantage of certain tax incentives if a portion of your workforce works from home on a part-time or full-time basis.
Many governments around the world now encourage businesses to let their employees have more flexible working hours, especially as the “gig economy” of the digital age continues to rise.
These tax incentives could help to reduce your bottom line tax bill at the end of the year, which is always one of the biggest financial drains for any size of company.
Reduced pay (or raises)
While it’s not the case for everyone, some employees will be happy to take pay cuts (or perhaps avoid a raise) for the benefit of working from home instead. The idea is that they will save money on reduced commuting, travel, and eating away from their home etc.
Some people also just value flexibility and free time more than having more money, which is fair enough. Time is valuable!
If your employees are willing to take minor pay cuts in exchange for the flexibility of working remotely, then you should take advantage of it. Most of the time you’ll end up with happier, more productive employees who you’re paying less while spending less on office utilities because they’re not there to use them.
In many cases, it’s a win-win for employees and employers.
We hope you enjoyed these tips on how working from home can save companies money! From electric bills to tax incentives, there are many reasons that remote working can be cost-effective.