Employers want workers back in the Office….so why are Startups and Investors betting on the future of Remote Work???

Working from home has clear-cut advantages beyond the bliss of spending workdays in a coffee shop or the comfort of your home. Remote work can quickly transform your tech business model, and your employees can save up to $4,000 working from home, according to an analysis by FlexJobs.

Cost savings for companies that allow telecommuting include:

· Rent and utilities: Your tech company saves on rent and utilities where you must pay for larger premises.

· Cleaning services: The cleaning services bill will decline significantly, with minimal staff onsite.

· Food costs include serving refreshments during meetings or providing a cafeteria service; you can quickly eliminate these costs with remote employees.

· Taxes: The payroll, sales, and property contribute to the company’s tax burden. And making changes that accommodate remote workers could significantly cut down your tax obligation.

Still, employers want workers back in the office. But startups and investors are betting on the future of remote work. Read on to find out why the future of tech might rely more on remote work.

Benefits of Working Remotely

Remote work can accelerate your debt repayment plans and help you reach elusive financial goals. But there are more benefits to working away from the office.

Some big tech companies and software outsourcing companies find that a hybrid model works better than working remotely, as it blends remote and in-office work methods. According to Google CEO Sundar Pichai, it’s essential to “create more flexibility and more hybrid models” to combine the benefits of the two.

Here’s why startups and investors are betting on the future of remote work.

· Less or No More Commuting to the Office

Ending the daily routine of commuting from work saves your wallet and is highly beneficial to your mental health. You can cut down on expenses such as gas, wear and tear on your car, parking, and regular maintenance.

And more importantly, employees are spared of the daily aggravation of being stuck in traffic during rush hour.

· There’s More Flexibility and a Chance to Relocate

Working from a remote office offers more flexibility for where you choose to live. When considering relocation, you should consider the financial costs versus the lifestyle advantages.

Remote work can help employees to access company resources in the comfort of their remote office. Tech workers find flexibility more important than pay, as it helps them manage at-home responsibilities, care for their children and family, and avoid the everyday commute.

· There is an Increased IT Staff Productivity.

When a company trusts the employees enough to allow them to work from home, the business could benefit from increased productivity. You can manage the remote team better and enhance their productivity using employee monitoring software.

· Improved Employee Satisfaction

Employees working from home have a higher level of work satisfaction than in-office workers. They have a better work-life balance with more free time to spend with their families; women with families to take care of especially find this to be a positive driver towards more productivity.

· Fewer Absentee Employees

Remote employees have lower levels of employee absenteeism than in-office employees. The former leads a healthier lifestyle, with better rest and more nutritious home-cooked meals.

This healthy lifestyle guarantees lesser sick days and eliminates chances of exhaustion caused by commuting; hence they are more active during work hours. Remote work can be a great employee retention strategy for a company.

· A Global and Diverse Talent Pool

Due to the high market for skilled workers, hiring good talent is becoming increasingly complex. Investors and startups are eyeing remote work to be a reliable source of experienced IT technicians and programmers.

Despite geographical limits and office space restrictions, remote work removes the barrier of recruiting locally. And instead, source from a global pool of talented professionals without needing to relocate them.

· Eliminate Unnecessary Meetings

Business meetings can drain a company’s precious resources, including time. Keeping all employees organized and on track can still take time, even with a clear and stringent agenda.

Further delays arise when coordinating different departments to converge into one venue. But luckily, technology makes it easier to collaborate and plan your meetings better while getting your message across efficiently.

Potential Drawbacks of Working Remotely

No solution is 100% perfect, so you need to assess the potential drawbacks before adopting a teleworker team. These limitations include the following:

· Remote Work is Not Always a Good Fit for Every Employee

Remote work demands that the employee designate a space at home where they can work without distractions. They should also be self-directed and be able to work with remote technology comfortably. Additionally, employees with children should understand that remote work is only a replacement for daycare if work is scheduled around the child’s needs.

· Fears Over Career Progression

Some employees fear they cannot highlight their skills, and their work efforts could be overlooked since they are out of sight. Such employees may require constant reassurance through regular communications via email, phone, instant chat, or even face-to-face meetings.

· Data Security

Protecting the data shared between the company and the remote worker is critical to prevent breaches. Security training and retraining employees are helpful but could add to your business operation costs.

· OSHA and Employment Law Concerns

Remote employees should work in a safe and healthy workplace to avoid accidents at home and, consequently, liabilities for the company. However, only some homes and offices are ideal for work. For instance, workers working from the house basement may use unsafe stairs to access their home office.

· Tax Implications

Although you may cut your tax costs, there are other tax implications of having remote workers. For example, New York City imposes taxes on remote workers, even when working outside of the city. And so, you may owe taxes to your current state and the state where the company is located.

It is true that the Covid-19 pandemic changed the way different companies operated and how they saw every bit of their working setup. Some have opted to do it remotely, stick to the in-office work, or bundle up the two (the hybrid Approach).

For instance, according to a Sept. 26 report from Resume Builder, 90% of the interviewed companies preferred a back-to-office mode in 2023.

Some reasons why most companies like Twitter, Facebook, and Google want their employees back in the office include ease of communication, productivity, the company’s culture, and fixed schedules.

But among these giant companies, the hybrid setup — a mixture of the in-office and office setup- is rising. Some of the cited advantages include cost effectiveness, improved communication, and the employees can utilize the available tools and amenities.

Final Thoughts

Remote work offers tech businesses numerous benefits, including saving costs, but it has some potential drawbacks that you need to consider first. Adopting a hybrid work culture can be an excellent place to start, as you assess employees’ performance while in the office and while they are working remotely.