The Now Normal set up brought about cost savings not only for employees but also to Employers as we embrace the work from home scenario.
Current research shows the savings of Firms from Real Estate costs:
- IBM slashed real estate costs by $50 million
- McKesson saves $2 million a year
- Nortel estimates that they save $100,000 per employee they don’t have to relocate
- Average real estate savings with full-time telework is $10,000/employee/year
- Dow Chemical and Nortel save over 30% o5n non-real estate costs
- Sun Microsystems saves $68 million a year in real estate costs
Savings from Productivity
Since Employees are no longer commuting to work and eliminating the travel time and traffic, there has been a huge elimination of late and absenteeism.
Employees who work from home are also less likely to use sick time. Employers lose $1,800 per employee per year on unscheduled absences and leaves; that adds up to $300 billion/year for U.S. companies.
Based on a case study by American Express, after implementing a Work from home (WFH) policy, the company performed research and found that its WFH took 26% more calls and increased their business output by 43% — nearly an additional half of an employee — than their coworkers who worked in a physical office.
Reduced Attrition
Work from home has a huge impact on employee retention and employee acquisition. Losing a long- term employee can cost a company between $10K – $30K. Losing the expertise and knowledge of the tenured employees can prove more costly.
Case Study: CiscoSystems
CiscoSystems has had a work-from-home policy for the past decade. The real driver for the policy was to retain talent, increase happiness and improve productivity. The company has since cited telecommuting as a way to keep attrition costs low and estimates it saves $277 million each year in productivity gains.
Other key benefits would be Regional diversity and Business Resiliency – due to the employees no longer tied to a region they are working from and more flexibility to cover for time zone differences.
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