The Human and Business Case for Remote Work

by Kevin Sheridan, author, The Virtual Manager

PC: Pexels

The Coronavirus and the resulting shift to a remote workforce has forced us to quickly rethink how to maximize employee productivity AND personal well-being, the foundation upon which our level of productivity is built.

At this moment, when we are afraid and so disconnected, we don’t have the luxury of time while planning a new strategy, but rather must quickly come up with real solutions that work. As the author of The Virtual Manager and the bestseller Building a Magnetic Culture, as well as being the CEO of a partially remote workforce company, I am asked to train employees and managers on the related best practices. Specifically, I am training people on how to best show up to perform the difficult work of staying connected, caring, and extending ourselves where it’s not expected — all of which will yield the best results during this unprecedented time of our lives.

With that said, as evidenced below, there has always been a compelling business case for remote work.

First, a remote work policy facilitates a powerful way to attract top talent, especially Millennials and Gen Z, the two generations who value autonomy and scheduling flexibility the most. To quote Bob Dylan, “The times they are a changing,” and organizations need to change with them. Given that reality, the business case for remote work becomes even more compelling.

Second, flexible work hours and allowing employees to work remotely makes clear and fundamental business sense. The statistical ROI-based research illuminates that working from home makes sense for both employer and employee. Simply put, the business case for remote work has been proven. For example, having good virtual work policies is highly correlated to:

• Best-in-class status. In fact, 82 percent of Fortune Magazine’s 100 Best Companies to Work For already have remote work policies.
• Higher productivity, largely due to the fact that virtual employees work an average of four hours more per week than people who go to a company site.1 In addition, 81% of employees who have worked remotely report that they were more productive than when they worked at a company site(1).
• Avoiding the thief of workplace productivity: interruptions. According to a 2018 Basex Research study, the average on-site office worker is interrupted 60 times each day. Furthermore, this study revealed that after being interrupted, the average worker gets back to the task at hand only 40% of the time. This means that after the interruption, the remaining 60% must start whatever they were doing all over again. See related article on workplace interruptions: http://kevinsheridanllc.com/2017/05/thief-workplace-productivity/
• Better talent attraction and retention, largely due to eliminating geographic restrictions on the talent pool.
• Enhanced recruitment capabilities and lower recruiting costs.
• Cost savings from the reduced need for renting or buying physical working space and eliminating many overhead costs to maintain onsite facilities.
• Higher customer satisfaction due to better coverage across different time zones.
• Increased insight into other markets by having your workers all over the country, or even all over the world. Employees become keenly aware of local preferences, dislikes, and opportunities, leading to important innovations, new products, customers, and ultimately, higher profitability.
• Lower absenteeism and higher engagement. Gallup’s 2017 State Of The Global Workplace Study proved that these virtual workers are more engaged (32% versus 28% engaged for onsite employees). Absenteeism costs the average American employer $3,600 per hourly employee, per year.2 Additionally, it costs the average American employer $2,650 per salaried worker, per year(2). Even the small percentage increase in engagement can result in significant cost savings, especially for larger organizations.
• Eliminating the stress of commuting to work. Job stress is the number reason why employees resign(3).
• Cost savings for the employees, since costs for gas and train/bus fares are reduced or eliminated.
• Improved reputation and good PR from being a “family-friendly” employer.
• A reduced carbon footprint, which highly engages Millennials and Gen Z due to their desire for Corporate Social Responsibility (CSR).
• Higher innovation and creativity. According to a May 2014 Wall Street Journal article, only 10% of workers believe they do their best thinking at work, versus 39% who believe they do their best thinking at home.
• Greater work-life balance, which is highly prized by Millennials, the fastest-growing generation in the workforce(4).

As this global pandemic wanes, many organizations may not go back to the traditional workplace model, since they will have experienced the myriad benefits of remote work and virtual workers.

Sources:

1. Gallup — 2017 State Of The Global Workplace Study.

2. Forbes Study, June 6, 2018.

3. HR Solutions, Inc and Gallup Studies.

4. February 1, 2018, Frisco Style Publication.

New York Times best-selling author Kevin Sheridan is the Chief Engagement Officer (CEO) of HR Solutions, Inc., a human capital management consulting firm specializing in employee engagement surveys. Sheridan pioneered the idea of duel-ownership of employee engagement and was the first in his field to address the imbalance that an entire industry had overlooked. He has done consulting for some of the world’s largest corporations and is a frequent speaker at conventions. His work and research have appeared in a myriad of national and international publications. Sheridan received a master’s in Business Administration from the Harvard Business School. He resides in a Chicago suburb with his wife and two daughters. Visit him at www.kevinsheridanllc.com, on Twitter at@KevinSheridan12, and on LinkedIn.