How Much Business Can Save From Remote Work?

How Much Business Can Save From Remote Work?

A new study says that businesses in US that applying remote work could save $11,000 per employee each year.  If workers telecommuted an average of 2 1/2 days a week. That study answer the question of many people  of how much business can save from remote Work? does the number significant enough?. 

The study, from Global Workplace Analytics, a San Diego-based consultancy, also found that part-time workers could net an average of $3,000 per person per year on the basis of lower transportation, meals and workwear costs. 

How Much Business Can Save From Remote Work
Remote work makes employee can save time in commuting

Employer’s Saving Factors

Employers’ savings are based on factors including: increased productivity; reduced office costs, lower absenteeism, and reduced turnover, the report said. the study estimated part-time remote employees devote an extra 26 minutes per day to work time by eliminating the average 55-minute round-trip commute. The report also estimated that workers have fewer interruptions at home (43 minutes a day versus 78 minutes at the office). 

The study assumes an annual cost per employee of $99,000 in salary, benefits and taxes. Based on a 15% increase in productivity over 125 workdays a year, employers would reap $7,430 per worker. 

Richard Vogel, dean of the Farmingdale State College School of Business, said that the $11,000 in savings sounds like a reasonable figure to answer How Much Business Can Save From Remote Work?. Though a remote workforce could require some companies to bolster IT service.  


Kate Lister, president of Global Workplace Analytics, said the COVID-19 pandemic has forced the issue of remote work. Before the pandemic, there were only about 7% of companies offered the “privilege” of remote work to higher-level employees.  She also said that an indirect societal benefit from remote work is lessened pollution from commuters.  

How Much Business Can Save From Remote Work
Pandemic makes companies applying remote work

The study was based on a database of business case studies and a Telework Savings Calculator on the web site of the consultancy.  

How about your office,  are they applying permanent work from home ? or partially work form home ? or no work from home at all after pandemic.  We would like to hear your experience, comment and opinion below !.

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