How Remote Work Builds Recession-Resilient Companies
Remote work is a way for organizations to build more resilient companies, even in times of economic uncertainty. As talks about recession have increased in the last few weeks, businesses everywhere are looking for ways to reduce costs and become more flexible.
The concept of remote work is no longer a novelty, which is why we see more and more companies starting to offer this as a perk to potential employees. But what does remote culture have to do with building recession-resilient companies?
Five Benefits of Remote Work
Remote work gives your business a key advantage over competitors like never before. Nowadays, with so much competition on the market, taking risks is essential for success. That's why implementing remote work can guarantee better results — regardless of business size — than having all your employees working under one roof.
The benefits of remote work are well documented by now. Its carefully calculated rise, which had been projected to follow a predictably smooth growth curve over the next decade, suddenly spiked after the COVID-19 pandemic started. Forbes reports that in the first few weeks after the crisis, 45% of large and small businesses in the United States moved part of their staff to remote work.
Research indicates that businesses with smart control over their assets stand a better chance of success in a tough economic environment. Data also shows that working remotely benefits both employers and employees in financial ways.
Global Workplace Analytics estimates that a typical American employer can save an average of $11,000 per half-time remote worker per year. Meanwhile, employees can save an average of $4,000 per year on work-related expenses by working remotely, according to FlexJobs.
Here are five ways remote work can help your company become more profitable.
1. It improves productivity.
According to a 2021 report by Owl Labs, 83% of surveyed workers said that they have the same productivity level — or higher — when working from home compared to the office. That's because they're able to focus without distractions, which means they're less likely to waste time on Facebook or other social media sites. They also have more control over their schedules, so they tend to be more efficient about getting their work done.
2. It reduces overhead costs.
Renting office space is expensive — especially if you're not using it all the time (or at all). If your employees work from home, you don't have to pay for a physical location anymore and can use that money toward funding future projects or investing in new tools or equipment that will help your business grow even faster. This also means that during an economic downturn, when hiring freezes and layoffs are common, you'll be able to keep your team together instead of letting them go because of financial constraints — which helps keep morale high.
3. It attracts top talent.
Hiring remotely gives you access to the best talent anywhere in the world, without having to pay a premium to compete for it against Google, Facebook, Amazon, etc. in any local geography. By allowing employees to work remotely, you'll open up access to a wider pool of candidates who might not have considered working at your company otherwise — people who might not be willing to relocate or commute long distances for their jobs. Remote work is also a benefit that can help attract millennials and other young professionals who value flexibility over location or salary alone.
4. More profit
Remote work can help your company generate more profit. Companies that have tried it notice a decrease in operating costs and an increase in profits. Global Workplace Analytics has compiled data on the pros of telecommuting. For instance, almost six out of ten employers identify cost savings as one of the benefits. And real estate savings can average $10,000 per employee per year with full-time telework.
In addition, according to Forbes, companies that have a remote workforce are likely to be more profitable than traditional office-based businesses because they have lower expenses such as office space rent and employee benefits costs.
5. Happier employees
Some companies worry that if they allow employees to work remotely they’ll become less loyal. But research has found exactly the opposite, employees who work remotely tend to be more satisfied with their job and in turn, remain loyal to their company. A study by Stanford found that working from home increased productivity by 13%. The same study reports that workers improved work satisfaction and attrition rates decreased by 50%.
In fact, a survey from Statista shows that the most valuable aspect of working from home is having flexibility in how remote workers spend their time. Remote workers tend to feel like they have more control over their careers than those who work in traditional office environments — and they're often happier as a result. They may also feel like they have more flexibility concerning family obligations.
Remote work leads to stronger companies in good times and bad. It should be clear that remote working is not merely a trend, nor will it be contributing to the demise of brick-and-mortar offices. In fact, remote work may very well hold the key to establishing professional companies that can stay resilient through all sorts of economic cycles.
The building blocks of a global, home-based workforce are already in place: a combination of a growing number of knowledge jobs that can be done remotely with the near-universal ownership of cell phones, personal computers, and increasingly better collaboration software, all linked together by ubiquitous high-speed internet.
If you’re struggling to survive right now —amid the talks about mass layoffs, inflation, and recession— a highly distributed team could be one of your best options. It might not be for every company, but remote work may be just what you need.
At GroWrk we can help you go fully remote by providing you with end-to-end IT support. We’ll manage your existing IT assets or help you buy new ones so you can deliver them to your employees across the world. This is done seamlessly through a powerful dashboard so you can increase productivity and reduce costs. Request a demo to start enjoying the perks of remote management.