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5 ways working from home saves employers money

Telecommuting is becoming quite famous as it is freeing people from the humdrum of conventional workplace. According to, telecommuting has increased almost by 80% since 2005 in the US. There are numerous benefits of telecommuting including it being cost effective for the employers. Here are 5 ways in which employers can save money with the help of telecommuting:

Increase in the Productivity Level

It is evident from a research that people who work for more than 40 hours a week are mostly working from home. The statistics show that 53% of telecommuters and 28% of non-telecommuters work for 40 hours or more in a week. It is not true for all the cases as it also depends on the nature of the work. In fact, the type of work determines the outcome of the productivity level of a telecommuter. However, non-telecommuters perform much better if the work is repetitious. In this case a telecommuter’s productivity level decreases to 6 to 10% than a person who works from an office.

At first it may seem that the productivity is decreasing especially when you are trying to figure out which employee should become a telecommuter. Although you would notice an impressive change later particularly when you would save a lot of money by using online productivity tools.

Lower Operating Expenses

An average company could save approximately $11,000 in a year if it lets its employees to work from home even for half of the time. This decreases the operating expenses drastically.  Companies can avoid the lease payments, office supplies, furniture, water expenditures, coffee expenses and commuting allowances. Lowering overhead is definitely one of the best way to save money for the employers.

Improvement in Churn Rates

Telecommuters are much more satisfied from their job than the people who have to go to offices to work. Due to this reason there is a huge improvement in the churn rate of a company.  Churn rate optimization is extremely important in the long-run success of a company. There was a study conducted by Staples Advantage, according to which 80% of telecommuters attained a much better work-life balance. They suffered from 25% less stress levels and 73% of them got healthier after they started working from home. In fact 36% of employees would love to work from home rather than getting a raise according to studies conducted by Global Workplace Analytics and 37%. would even take a 10% pay cut if they could work from home. A mediocre company would lose at least $10,000 to $30,000 for every employee that leaves.

Less Unscheduled Absences

According to a research, telecommuters take much less unscheduled absences than the people who go to office for work. An employer can save around $1800 per employee a year if the unscheduled leaves get fewer. Around 78% of employees take sick leaves due to stress or other personal problems. Telecommuters do not take much sick leaves as they aren’t as stressed as the non-telecommuters. Employees who work from home can also start the work much earlier even if they undergo a surgery.

Reduced Travel Expenditures

A company usually spends $949 per person on a domestic business trip while the travel expense of an overseas trip is around $2600. Whereas, companies that use online tools to communicate save a lot of money as they do not have to send their employees for business meetings.