The COVID-19 pandemic has resulted in a sudden, massive international shift of companies suddenly having to operate with most or all of their employees working remotely. This has, of course, created a logistical challenge for many companies that have neverdone more than dip their toes into the water of remote work.
As a business owner, you are likely to be concerned with how this shift will impact company culture and productivity. But you might also be wondering what sort of impact this shift to remote work will have on your bottom line.
The good news is that there are some financial benefits to these changes, even if a remote work setup isn’t something you’d want to keep in place any longer than necessary. Here’s a quick look at some of the potential financial impacts of a months-long reliance on remote work for companies.
- Productivity benefits: One of the biggest concerns for business owners is that a sudden major transition to remote work will result in a loss of productivity. However, many studies actually show remote workers tend to be more productive, because they do not need to commute into the office, can finish their work on their own timeline, and do not have coworkers to distract them. They also have more flexibility with scheduling breaks versus work time. There can be an initial adjustment for people just starting to work remotely for the first time, but there is plenty of reason to believe that allowing employees to work remotely can actually be good for productivity.
- Cut costs: There are certain costs you can cut out when you have employees working remotely. Fully remote companies do not have to pay for office space at all. For companies that are simply weathering the pandemic, this period of remote work still allows for savings on energies and utility, as well as certain office supplies and day to day expenses.
- Greater access to contract workers:This time of more widespread remote work will show companies they can afford to cast a broader net in their search for contract workers. Remote work allows freelancers to work for companies in entirely different parts of the country. Even once things go back to “normal,” many companies might find they can afford to let certain positions, particularly contract positions, be entirely remote, and thus open their doors to high-quality candidates from parts of the country in which they might not previously have invested in candidate searches. And of course, bringing in high-quality workers is always good for your bottom line.
- Increased engagement: Studies show about 90 percent of employees say greater flexibility in their working arrangements can help to boost morale. Remote work can help provide the flexibility your employees crave. Even after the pandemic has subsided, many companies will likely find reason to continue allowing employees to work remotely more frequently to keep them engaged in their work. Employees that are engaged and happy with their work will be much more productive.
If you need assistance during this time of uncertainty and transition to new (temporary) business models, contact us today at MCG Solutions.