Does Working From Home Save Companies Money?

December 5, 2023

Baruch Silvermann,, November 6, 2023

When the pandemic hit, many Americans with jobs that didn’t require face-to-face interaction were forced to work from home. This paradigm shift in how companies and employees managed operations created new norms and expectations. Many employees enjoyed ― and continue to embrace ― the freedom and flexibility of remote work plans.

Business owners have other factors to consider. If allowing your team to work from home can help you reduce operational costs or give your company other competitive advantages, you have a win-win situation. Here’s what business owners should know when evaluating the benefits of allowing remote work.

How working from home can save companies money

Along with remote work’s benefits for workers, business owners may find that remote work saves their companies money. For example, Sun Microsystems identified telecommuting-prompted savings of $68 million yearly in real estate costs while Dow Chemical and Nortel saved over 30 percent on non-real estate costs.

According to Global Workplace Analytics, nearly 60 percent of employers identify cost savings as a significant telecommuting benefit. It estimates that for all remote-work-compatible jobs, if everyone who wanted to work remotely did so just half of the time, the total money saved would be over $700 billion annually. This averages out to more than $11,000 per employee per year.

Here are some concrete ways remote work saves businesses money:

  • Remote work saves on rent and utilities: If most of your team works from home, your office space needs won’t be as significant, saving money on rent and utilities.
  • Remote work saves on relocation costs: Many companies pay for key employees to relocate. However, this isn’t necessary if the employee can remain in the same place and work remotely.

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