Many small business owners might be trying to find new and innovative ways to streamline their companies, make their employees more productive, and reduce costs. However, one great way in which they can do this might actually seem counterintuitive.
A great way for entrepreneurs to reduce their independent companies’ expenses and boost worker engagement and productivity is by allowing employees to work from home, according to a report from Business 2 Community. Many owners may be reluctant to allow this kind of activity because they fear it will give those on their payroll an excuse to fall behind on their assignments, but the opposite is actually the case. A number of studies have shown that workers are about 15 percent more productive than those who go into the office; usually, people are more likely to waste time through simple conversations and so on in the office than they are to watch television or walk the dog while they’re working from home.
Likewise, the fact that workers aren’t coming into the office can actually save businesses – regardless of size – a considerable amount of money per telecommuting employee, the report said. Studies have shown that, on average, the savings realized in this way can come to more than $8,000 per worker, through fewer office supplies and resources used, reduced electricity bills, potentially smaller office space needs, and so on.
Further, it should be noted that allowing people to work from home may have the result of making employees more likely to stick with a business because it reduces their travel costs – gas, parking, vehicle upkeep, etc. – and potential frustration, the report said. Recent polls suggest that as many as two out of every three workers say they’d like a job closer to home as a means of reducing their issues with commuting. That, too, saves businesses money, because hiring and training each new employee needed to replace an existing one that leaves (for whatever reason) can cost tens of thousands of dollars or more.
Owners worried about their costs and potential small business insurance liabilities may be able to reduce these as well if they let employees work from home. That could come as a result of less need for workers’ compensation insurance or general liability insurance coverage, which can cost a significant amount every year.