The pandemic started two years ago this month, and as we slowly (and hopefully) begin to transition from the pandemic to an endemic, it’s clear that there’s no going back to the way things were a million years ago. (Or 2019, which feels like the same thing.)
One of the biggest changes is that it working from home is now here to stay, at least for people who work in industries where that is possible.
After the pandemic hit, every company that could had no choice but to let their employees work from home, Zooming into meeting in their pajamas if they so choose. It seems people got really used to this, and refuse to go back to the old ways of communing to work, or at least going to work every day.
Microsoft’s (MSFT) – Get Microsoft Corporation Report second annual Worker Trend Index found that 53% of respondents prioritize their health and well-being over work, “and if they’re unhappy, more than half of Gen Z and millennial respondents said they’re seriously considering switching employers over the next year.”
According to a survey from Global Workplace Analytics, 4.7 million people work remotely “at least half the time,” in the United States, while 62% of workers between the ages of 22 to 65 “claim to work remotely at least occasionally.”
That number is likely only going to grow, though not everyone is going to be happy about that.
Not Everyone Is Down With Work From Home
Amazon (AMZN) – Get Amazon.com, Inc. Report, Coinbase (COIN) and Ford (F) – Get Ford Motor Company Report are some of the companies now letting their employees work from home permanently, or adopting the hybrid model where sometimes they come into the office.
But some companies aren’t so into the brave Zoom world. Microsoft, Expedia (EXPE) – Get Expedia Group, Inc. Report, and American Express (AXP) – Get American Express Company Report are all telling employees to prepare to come back to the office.
In general, executives “are three times as likely as employees” to get back to the office, according to a recent Future Forum survey. According to the Microsoft survey, 50% of companies plan to require full-time in-person work, while 52% of employees are considering going remote soon.
The ability to telecommute has basically been around since the advent of e-mail and personal computers, and arguably became inevitable once Slack debuted in 2013 and became the preferred means of communication for offices.
But many companies were resistant for fears that working from home would lead to a decline in productivity. Though nearly six out of 10 workers reported being more productive working from home, old attitudes die hard, and many companies cling to the idea that it’s bad for business.
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Many employers say workers miss out on both camaraderie and the idea that come from in-person brainstorming when working from home. But the counter-argument, which circulates frequently on Twitter (TWTR) – Get Twitter, Inc. Report and Substack, is that many middle managers feel threatened by the shift to working from home, as it erodes their authority and makes them seem relatively unimportant.
How Much Can Companies Save When Shifting To Working From Home?
But while some companies are reluctant, there’s plenty of tangible benefits to working from home.
Many employees report that not having to deal with a commute improves their mental health and stress levels, and they appreciate the flexibility when it comes taking care of parental duties. (Though it should be noted that some people feel the opposite, and report feeling lonely and isolated when working from home, which is a good argument for the hybrid model or making it an option.)
There’s also the fact that by removing the need to commute, companies can significantly reduce their carbon footprint. In 2015, Xerox reported that its teleworkers drove 92 million fewer miles, cutting carbon dioxide emissions by nearly 41,000 metric tons.
But if an employee’s happiness, worker retention and the environment isn’t enough, then companies can also consider the savings that come from having less office space, and not having to constantly hire new employees.
Dave Rietsema, is the Founder and CEO of Matchr.com, one of the leading Human Resources software companies. He notes that “Employees may be the ones pushing for remote work, but they aren’t the only ones who benefit. Companies can save a lot of money with remote work.
“Companies can save up to $11,000 per employee in terms of overhead costs if they switch to remote work. This is because companies with remote workers pay less in overhead costs such as utilities and resources for in-office employees as well as just needing less office space,” says Rietsema.
“Some companies may be able to go fully remote and eliminate the need for an expensive office altogether. Additionally, companies save money on turnover because employees who are able to work from home tend to stay with the companies that let them do so.”
Source: https://www.thestreet.com/investing/heres-how-much-companies-can-save-with-work-from-home?puc=yahoo&cm_ven=YAHOO&yptr=yahoo