Remote work has seen an explosion of growth in recent years. In 2022, a little under 10% of all US employees still worked from home. Many of these employees enjoy the flexibility and comfort provided by this type of work.
However, remote work can be incredible for a business as well. Properly utilizing remote employees has the potential to save money and increase efficiency. This can be a game-changer for many employers.
But how is this possible? Read on to find out!
Everyone knows that reducing business costs is one of the best ways to increase business profits. Doing so is a key feature of business finances. This is why one of the biggest advantages of utilizing remote work is the reduced costs it brings with it.
The primary way in which these reduced costs come into play is through having less office space. Non-remote employees require an office to work. This office space comes with tons of additional costs.
Renting office space is the most obvious and often is the most expensive of these costs. Then, paying monthly fees for electricity, internet, heating/cooling, and more adds to this. Plus, there are the initial costs of purchasing equipment and the continued costs of upkeep on this equipment.
However, these initial costs are just the start. Offices with a break room often spend money on snacks and drinks. Most offices also require a cleaning service and maintenance, which adds even more to the regular expenses.
By shifting from non-remote to remote workers, the amount of office space required dramatically decreases. By shifting enough work in this direction, a business may be able to go from a large and expensive space to a much cheaper location. It may even be able to move away from having an office entirely!
Wider Range of Employees
Right now, there is a labor shortage in America. There are around 10 million job openings but only around 6 million unemployed workers. This makes it harder to find employees in any location.
When this happens, it negatively impacts the operations of a business. Many companies have to raise wages or spend more on recruitment in order to entice potential employees. Many simply struggle to find any available options.
However, remote work extends the boundaries of this search. By hiring remotely, the number of potential applicants for any job increases dramatically. This allows a business to pick from the newly available options.
Imagine a company in a smaller city that is in need of a bookkeeping service. In that small city, there may only be a limited number of professional bookkeepers out there. Plus, many of them may already be working for other businesses.
By hiring remote employees, the business no longer limits itself to the local area. It is able to hire remote employees from outside of the city or even outside of the state. This reduces the amount the company has to spend on recruitment.
Make a Business More Attractive to Employees
Offering the ability to work remotely makes a business incredibly attractive to employees. During the pandemic, many employees shifted to remote work and remained resistant to switching back. For some, this is a make-or-break issue of employment.
By offering the ability to work remotely, a business can offer less in other areas. An employee will be more likely to accept a lower salary if they know the position is remote. They may even be willing to accept other money-saving trade-offs.
This allows a company to spend less on their employees in general. As employment costs are one of the biggest business expenses out there, this has a huge impact.
Catering to this unique demand has the added bonus of improving employee retention. Once someone has a remote job, they will be happier and less likely to leave that job. Improving retention and reducing turnover cuts costs while also building experienced, veteran employees.
Specialization is a trick issue within the world of business. Having a highly specialized employee means that they are able to do their job at a level unspecialized people would be unable to. However, it also means that they are probably not as good at jobs that fall outside their specialization.
This is another place in which remote work has the potential to help. A company can offload highly specialized work to a remote working company that specializes in that type of work. This ensures the work is done by professionals.
Imagine the same company from earlier, the one in need of a bookkeeper. Instead of hiring a bookkeeper to work for them full time, they have the option to simply contract out the job to a remote working company. This allows them to complete the work without having to take on the added responsibility of another employee.
In many cases this alone will save money. Contracting the work out often ends up being less than hiring a single person to do all of the work.
However, it can also increase profits in other ways. By taking advantage of the specialization of others, a company improves its efficiency. This may lead to more work being done or the same work being completed at a higher level of quality.
The Benefit of Remote Employees
Hiring remote employees has the potential to change a business for the better. It is able to simultaneously lower costs while opening up the potential for better work. Knowing all of this should make remote work a consideration in any company’s financial planning.
If you are interested in increasing your business profits through remote work, contact Bennett Financials to find out what options are available to you.