Does Working From Home Save Companies Money?
Even after the COVID-19 crisis has ended, many full-time workers in the world want to operate remotely. But, will working from home save businesses money?
Allowing workers to work from home saves money.
Remote working can help companies save money in a variety of ways. Many existing companies have already realized cost savings as a result of telecommuting. Sun Microsystems saved $68 million per year on real estate costs, while Dow Chemical and Nortel saved more than 30 percent on non-real estate costs.
According to Global WorkplaceAnalytics, almost six out of ten workers see cost savings as a significant advantage of telecommuting.
Rent and utilities: If the majority of your staff works from home, you won't need to pay for bigger offices, which would save you money on rent and utilities.
Cleaning services: With fewer employees on-site, the cleaning services bill is likely to be drastically reduced.
Food: If you have remote staff, you can save money on this by delivering a cafeteria service or serving refreshments during meetings.
Taxes: A company's tax burden is determined by three factors: payroll, income, and land. Making improvements to accommodate remote employees can have an effect on your tax burden as well.
Employees who work from home incur additional expenses.
Teleworkers will need access to your applications, records, and computer systems. To help remote staff and plan for any remote technical support problems, you may need to make some infrastructure improvements.
Fortunately, there are several options on the market; however, you must factor this into your costs. You must consider what software and other resources your team will need to function efficiently from home. You may need to pay for video conference software or other communication resources, for example.
Google Case Study
With the removal of Covid-19 limits, more users are booking trips and hotels online, which is great for Google's advertisement industry. Google workers, on the other hand, are operating from home and not going too much on company expense, which is also beneficial to the company's bottom line.
According to a corporate filing, Google parent Alphabet Inc. saved $268 million in costs from company advertising, lodging, and entertainment during the first quarter relative to the same time a year before, “primarily as a result of COVID-19.”
A TECH COMPANY
That would be more than $1 billion on an annualized basis. Indeed, Alphabet stated in its annual report earlier this year that due to the pandemic, the organization decreased investment, paused or rescheduled campaigns, and shifted some events to digital-only formats, resulting in a $1.4 billion decrease in advertisement and promotional expenses in 2020. Travel and entertainment costs were reduced by $371 million.
Many of the costs associated with recruiting thousands more employees is covered by the savings. And, despite a 34% increase in sales, the company was able to keep its marketing and operating costs effectively stable in the first quarter due to pandemic prudence.
Google is well-known for its perks, which include massage tables, catered meals, which corporate retreats, and have inspired much of Silicon Valley work culture. Since March of 2020, the majority of Google employees have worked remotely and without those benefits.
Google, on the other hand, intends to return to the workplace later this year. Ruth Porat, the company's chief financial officer, told investors that the company is planning a "hybrid" model in which employees will be spaced less thinly than before. Porat also mentioned that Google will continue to invest in real estate around the world.
Connect for more Information
We are sure after going through all the points, you can use them for your benefits while Start your business.
If you are willing to have more information regarding work from home policy, procedure and the costs involved you can just fill our contact form by Clicking Here . Or you can directly Whatsapp us by clicking the Green Whatsapp Icon on the screen.