How much does working from home cost or save?

It would be an interesting exercise if we calculated the cost of our commute time in terms relative to what we earn. If you spend 3 hours per day on average commuting during a typical 45 hour work week that’s 60 of your available 168 hours per week spent on work related tasks, or 15 personal hours used to facilitate working.

If you have the option of working from home you regain the personal benefit of those 15 hours right away. Work still gets you for 45 but they get a fresher, more productive, motivated you as your work to life balance equals out.

Offering employees flexible hours and the chance to work from home can not only cut overheads by as much as £6,000-a-year, but can also improve staff morale and productivity – so it’s no wonder more and more companies are looking at reaping the benefits of telecommuting.

That was a statement made in 2015 in relation to remote working employees .

In 2020 I have seen estimates of €10-15,000 being the actual real business savings when you consider all the aspects:

Data from Global Workplace Analytics – a company conducting independent research and consults on workplace issues and opportunities – shows how companies can save an average of €7,500 per year for every employee who spends half of their time working remotely.

  • reduced office sizes and utility bills – hot-desking or shared work spaces in smaller offices
  • increased productivity – less office gossiping, more condensed working periods
  • decreased staff turnover through increased flexibility and happiness
  • that remote workers are less likely to take sick days

You then have to consider the other side of the equation, the employees’ point of view there is cash savings and perceived value in remote working also

  • less time spent commuting – family time or personal time
  • money saved on commuting – possible to go to single car family?
  • cash expenditure on lunches, coffees, casual costs

Take those business costs, out of pocket personal expenses, add in the opportunity cost of that commute time and you could have a surprisingly high number to quantify the potential saving of moving to a work from home solution.

Interested in learning more? Give us a call!

 

 

Featured Photo by Jp Valery on Unsplash

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