Attrition is Halved by Working from Home
But what about the hard savings for the company?
The same study also concluded that the company saved $2000 per employee in rent savings, lower attrition and improved performance. This benefit would lead to year-over-year benefits for the organization including:
• A permanent reduction of leased space in major cities. Examples of typical commercial rental costs per square foot in 2017:
o Washington D.C. - $595
o Boston - $550
o Auston - $486
o Denver - $284
o Atlanta - $239
o Salt Lake City - $187
o St. Louis - $168
• Lowering of heating, cooling, lighting costs for office space;
• Shift from often very high costs for dedicated internet for business offices to the more reasonable residential home version. Even if the company subsidized monthly home WiFi, there likely would be some savings depending on needs;
• Reduction or elimination of rental or purchase of office furniture;
• Decrease for funds allocated for parking for employees;
• Lower costs for job postings and time allocated by managers and Human Resources for recruitment.
Is This the Right Approach for Every Employee?
Not necessarily. Once the first phase of the study was complete, they analyzed overall performance and found that historically poor performing employees should not be selected for the work-from-home option but should be either in the office or flex between the two. Once an evaluation of which employees qualified for remote work, performance increased even more.
Once the experiment concluded, the company rolled out the learnings across all teams and saw long-term improvements in performance and cost control. Their workers increased output and improved their ability to serve their customers even better.
Selection Further Increased the Performance Impact of Home Working During the Company Roll-Out
While not for every employee, most companies have the ability to shift some or most employees to a Flex Work model. In some cases, as Propulo found for our workforce, all employees can work entirely from home and see massive savings. Yes, the organization must transition carefully in order to ensure processes and productivity are managed properly but it is worth it from many aspects, including financially.
Our team has the expertise to help your business plan and implement a sensible Flex Work strategy without pain. We work with you to enable your worker’s discretionary effort, company culture and processes are able to shift properly and continue to deliver results for your organization and customers.