Due to Coronavirus, organizations are forced to try an experiment, allowing their workers to work from home. An involuntary experiment to find the outcomes of the same.
Coronavirus Outbreak has Compelled Employees to Work From Home
China is still battling with the terrible effects of the deadly Coronavirus, companies all over the world are wanting their employees, especially those who might have been in contact with the infected person to work from home. Keeping safety as a priority, the company wants the employees to freelance until the incubation period (2-14 days).
One of the biggest experiments was initiated worldwide to restrict the spread of the virus. While the results are still being documented for this global experiment, let’s discuss some of the advantages these organizations are expecting.
Rise in productivity
One of the biggest skepticisms among the metric business owners is, whether their employees are being productive in the absence of the supervisor/manager?
The answer to that question is a booming yes.
Standford Professor of Economics Nicholas Bloom conducted a two-year experiment tracking the performance of two different groups of call center staff. Appointed from one of the biggest travel companies of China, Ctrip.
Let’s take a look at the results:
*An increase in performance by 13% (9% was due to their staff willing to working for longer shifts, as a result of a few breaks and sick days).
*Increase in the rate of calls per minute by 4%.
*50% fewer resignations.
*The company generated over $2000 profit per person working from home.
There have been several other studies that have proven the increased productivity benefits of remote workers. The results aren’t the statistical outliers. Although CoSo Cloud’s freelance employee worker survey had discovered that 77% of their freelancers have reportedly increased productivity, 52% assured that they were less likely to take any leaves or time off.
Following are some astounding workplace reports/findings:
*35%-40% rise in productivity in British Telecom, Dow Chemical, and Best Buy’s freelance teleworkers.
*American Express remote workers were 43% more productive than any other office staff present.
*Work from home AT&T employees has reportedly worked for an additional 5 hours when compared to other office job profiles.
*JD Edward’s freelance teleworkers showed a staggering rise in productivity by 20-25%.
*Increased productivity by 15-45% in Compaq’s staff.
It may certainly sound strange, as within an office communication is extremely fast. One can just call out the employee and discuss the matter, for any collaboration or meetings workers can be taken within the conference room and whiteboard ideas off each other.
This raises a question, why are remote employees highly productive?
The most expected answer is that there would be fewer distractions comparatively. No birthday parties, being annoyed by the staff or loud typing noises from the keyboards of the nerds.
When an employee works from home, he/she is in a zone of comfort and calm. Also, isolation is available at home, which directly increases productivity. At home, one has complete control over the situation. Whether it is too noisy outside, one can close the window. Too hot, turn on the air conditioner. Remote workers always have an option to work from home, library, café or wherever they may prefer.
Reports suggest that most remote workers prefer to stay at home and work. This allows their employees to show their full capability, while they adjust their home environment for suitable conditions.
There are a few more benefits for a remote worker, let’s take a closer look to understand why remote workers result in such tremendous business gains.
Reduced Employee Turnover
The significant profit margin increase is one of the benefits, as on average it costs around $4000 to hire a new worker and it takes up to 42 days to fill in the position.
Results in the increased gap in financial and talent cracks within the company, and with over an average turnover rate in the U.S of 12-15%, which could potentially reduce the chances of getting through the recession and survive.
The topmost reason for employees quitting their job is due to a lack of trust. There are times where the employers won’t trust you with the execution of the unique skills, he/she found interesting during the interview causing the employee to look out for a better and more respectful employer.
When the employer allows their employees to work from home, it shows a gesture of talent appreciation and trust. As a result, the remote employees realize this and reciprocate the respect with greater work efficiency.
Data suggests that most of the employees prefer working from home, hence employees are less likely to resign if they get what they are looking for. I.e. Work remotely.
When it comes down to cost savings, employees, and employers both gain a benefit when working remotely.
Employees get benefits when they don’t have to travel to work daily. On average, Americans spend approximately $2000 to $5000 every year. By working at home, this expense is eliminated which makes the employee be pleased with their savings and not getting tempted by other job opportunities.
Employers, the cost saving is strategic. The numbers say it all, take a look. The employer has to pay $8-$23 per square foot per month as office rent. Average of 10 employees would require at least 150-175 square feet of space, allowing them to work remotely would save up to $12,000 – $40,250 in rent.
Many prestigious companies have taken up the idea to let employees work 100% remotely, companies such as Clevertech, Hotjar, and WordPress are few companies that offer to work remotely.
Keeping aside the decrease in the overheads, when working remotely it drastically reduces the electricity usage and waste generated. This leads to an overall cut-down in the carbon footprint.
Trusting the Remote Workers
One of the main reasons some business owners hesitate to take up a remote workforce model is trust. Due to a lack of trust, it is certainly not possible to run a business. But according to the data, it indicates that the majority of the employees respect the privilege of working from home, as a result, they work even harder and efficiently.
The work ethic of a good employee will not be affected by the environment, a good employee will be hard-working enough for you no matter where they work from. Whereas, a bad employee will have negative outputs no matter where he/she is working from.
Usually, employers have good observation skills, to identify and differentiate between a good and a bad employee. It makes it easier for the business owner to trust with their respective setup.
Effect of Workplace Culture
Quality of workspace has always been a major concern for any employee and to retain an employee, it is important to pursue a remote work setup.
With the help of ever-evolving tech solutions, management of the same has never been any easier. Using some of their amazing video conferencing options to connect with their colleagues. Dividing up the remote workforce into relevant teams and always being connected over a video conference. It makes them feel like they are in the same office and can tackle any worker’s loneliness if any.
Preferring to be a Remote Employee/Freelancer
Advantages of remote work such as lower overheads, high employee retention, increased productivity and efficiency. Apart from this, there are far too many other advantages of a work from home employee.
However, if you are currently unaware or unable to go with such arrangements, then you could initially perform a test of this model. Starting it with a smaller group of employees, gradually increasing to a wider group. This way, one can also work during the incubation process due to the Coronavirus.
The above-stated advantages can be used for the best, only if the owner accepts and allows employees to work from home. To hire employees who can work from home, you can visit Flitlance, one of the largest communities of freelancers.
Here’s the reason why,
Freelancers have a clean track record and proven ability to increase productivity
Most freelance workers tend to publicly display their ability to work. Freelancer profiles usually have a review section, where other employees drop a review of you. One can also pursue freelancers by judging them by their portfolio, and your requirement. Flitlance has 20,000+ verified freelancers registered who can work globally. So, do not let the Coronovirus shut down your dreams and hire employees today. Visit Us!