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Working From Home Cost Savings

The move to remote working has been positive as far as the pocket is concerned. The most direct and straight away financial savings to employees, in this case, is the elimination of the cost associated with commuting. People save gas, public transit or parking fees when they work from home. A reduced time-allocation to commuting occurs in the case of people who now work remotely, which has additionally financial benefits and increases effectiveness and efficiency, as a shorter travel time saves time while the saved time can be productively reinvested to work or personal activities.

Remote set-up is also good for employers financially. A major cost savings, for example, is in office space, or the lack of a need for most of it. Physical Office Space — Companies will be able to downsize their physical office space, thus resulting in lower rent, and utility costs. In addition, since fewer employees will be physically located in the office, companies can reduce administrative, machinery and facilities expenses. Savings on utilities alone, electricity or heating or cooling only, can be substantial if the business is one of a larger scale and has more office space to look after.

Lastly, beyond the cost savings from remote work, greater employee retention and satisfaction can also introduce indirect financial benefits. Offering remote work is also a significant part of your most talented employees´ benefits and is generally expected by big part of the labor force, which in turn reduces turnover and the costs related of recruiting, hiring and training new staff. Additionally, employees who are happy tend to be more effective and engaged, improving overall productivity and profitability. Conversely, employees are less prone to taking days off sick, as they have the power to control their working conditions, so absence rates decline.

This multiplier effect of environmental benefit and cost savings associated with reduced commuting and office space usage is hard to resist. Reducing the number of commuters on the road is obviously an advantage for the environment, as it means fewer greenhouse gas emissions, which could advance a company's commitment to sustainability or result in tax benefits or other economic supports for eco-friendly measures. Further, it can provide a competitive advantage for businesses by marketing themselves as more environmentally conscious, which may draw customers or clients that value sustainability even more, perhaps indirectly driving increased revenue.

Tech-Related Overheads: Then there is the cost-saving associated with the upgrades in technology. Setting up your remote work environment incurs an initial cost of remote work infrastructure (laptops, collaboration software, secure VPNs, etc.), but when that initial cost is weighed against the cost of in-office labor, it can yield long-term savings. Cloud based solutions, off-prem software, and virtual infrastructure bring savings of physical IT infrastructure, and support are becoming quicker and smoother as well, thereby reducing costs for most companies. Not to mention, digital tools scale when you do, allowing you to shrink or grow your business without added costs, adding some financial flexibility to an uncertain economic climate.

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