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The Business Case for Work From Home: 12 Benefits for Employers

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From less commuting to comfier workspaces, it makes sense why over 60% of employees report feeling happier while working remotely.

But while studies continue to prove remote work boosts employee productivity and collaboration, some employers are still hesitant to make the transition. For example, major companies like Google and Goldman Sachs have return-to-office policies in place for 2024.

The truth is, however, employers benefit from work from home just as much as their employees do.

Read on to discover just how beneficial it can be to adopt remote work for your business and why it should continue to be part of your operational planning.

You’ll also find a downloadable equipment checklist to help you provide your team with everything they need to successfully work from home.

Key Takeaways

  • Employers can save at least $20,000 per employee each year through remote work
  • Roughly 60% of employees report increased productivity working from home
  • Studies suggest that employees view working from home equivalent to an 8% raise in salary

1. Cost Savings

Eliminating or downsizing office space can significantly reduce overhead costs, such as rent, utilities and maintenance. Fewer team members in the building means less usage of electricity, water, internet and space. In fact, research from Global Workplace Analytics shows that working from home can save employers at least $20,000 per employee each year. 

In addition to overhead costs, office equipment, food, and relocation expenses also contribute to monthly spending for many employers. Ultimately, taking care of your employees in the office still eats into the business budget. Fortunately, adopting remote and hybrid work environments helps maximize cost savings on these factors.

2. Increased Productivity

Though many employers worry about their staff “slacking off” outside of the office, research into remote work and productivity reveal the complete opposite of this fear. In a recent study by Cisco, about 60% of respondents saw their productivity increase in hybrid positions. 

Employees working in hybrid or fully remote positions can better focus on tasks and time management without the distractions of a traditional office environment. 

Avoiding the daily commute also saves time and energy, further supporting employee productivity. 

A text graphic that reads: "60% of survey respondents believed their productivity increased after switching to remote work" (Source: Cisco).

3. Advanced Technology Integration

With a growing remote workforce, companies become forced to embrace digital transformation to give their employees the tools to operate as a distributed team.

The forcing function of shifting to remote work with the pandemic has had a lasting impact on how businesses embrace technology—for the better. 

The success of technology implementation projects is not so much a factor of the technology itself, but of the attitudes within the business. “Digital transformation is less of a digital problem than it is a transformation problem,” said research scientist George Westerman in an MIT webinar

The need for a quick COVID-19 response meant long-standing assumptions about how companies should approach digital transformation projects were challenged, Westerman elaborated.

Companies that are already tech-enabled by default to support remote work may find it easier to adopt emerging technologies, especially of interest as we find ourselves in the age of AI tools.

4. Enhanced Employee Retention

A job in Silicon Valley may sound exciting, but not for those who can’t afford to live there. On the other hand, employees with the option to work from home don’t have to relocate for their job. 

In this increasingly digital age, research shows six in 10 employees prefer remote and hybrid work arrangements.

RJ Milnor, founder and CEO of People Analytics Partners, explained in a recent episode of The CFO Show that offering the flexibility of hybrid or remote positions can boost job satisfaction and loyalty, significantly reducing employee turnover.

A text graphic that reads: "There have been studies that suggest that the work from home benefit is equivalent to an 8% raise in the eyes of employees." (Source: RJ Milnor, founder and CEO of People Analytics Partners)

Take time to analyze turnover rates within your company and consider how the flexibility of working from home (if it’s not part of your current operating model) can improve work-life balance for employees.

Remote working allows employees to stay with their employer after life-changing events, such as moving to another state, for which they'd otherwise resign. 

5. Avoid Need for Additional Office Space

New hires come with the need for extra office space. Understanding that running one office is quite costly, renting out a second brick-and-mortar space could be too expensive for some companies. 

Fortunately, remote working helps avoid this problem—you can grow your team and meet client demands without needing every employee on-site. Hybrid and remote positions also eliminate space congestion, saving on office equipment costs.


In an episode of The CFO Show podcast, founder and CEO of People Analytics Partners RJ Milnor sits down to discuss with Vena's CFO Melissa Howatson how remote work is impacting businesses' performance post-pandemic.

6. Reduced Absenteeism

Remote work also helps prevent the spread of undetected illnesses, such as COVID-19, that can result in multiple team members calling out sick at once. According to the CDC, productivity loss from health problems can cost U.S. employers $225.8 billion annually

With flexible work arrangements, employees can choose to work from home when feeling unwell or stressed, taking additional breaks and medication as needed to maintain productivity.

7. Lower Environmental Impact

Remote work also has implications for your business’s overall environmental impact.

Employees cut out their daily commute to the office by working from home. Studies show that, in the U.S. alone, switching from on-site to working from home can reduce up to 58% of our carbon footprint. Remote work also drastically reduces the amount of water, electricity and paper usage in offices that harms the environment.

Pro Tip: Track your business’s carbon footprint, taking into account your office facilities and employee travel, with our free ESG Reporting template.

A text graphic that reads: "Working from home can reduce up to 58% of a company's carbon footprint." (Source: PNAS.org)

8. Access to Global Talent

Without being confined to one location, remote employees can be distributed throughout the country and even the world. This gives you the freedom to attract and hire candidates from virtually anywhere, creating a wider pool of skill sets within your workforce.

From expanding into new markets to meeting increased demands, having remote staff supports your business’s ability to scale. Additionally, access to global talent increases your chances of finding and hiring candidates with the best experience.

9. Time Zone Coverage

Hiring nationally or globally not only gives you access to a better applicant pool, but also round-the-clock operations. With the potential for extended time zone coverage, your support staff will always be available to serve clients.

This is especially advantageous for SaaS and fintech industries in case of system crashes.  

10. Improved Diversity and Inclusivity

A wheelchair user at a desk working from the comfort of their home, talking on a cell phone and holding a cup of coffee

Remote work helps companies cast a wider net of experience and skill sets, enabling individuals of different backgrounds and circumstances to contribute as an employee.

For example, a survey from Slack revealed that 57% of working mothers prefer remote positions. Another analysis of LinkedIn job posts showed that 50% of submitted applications were for work-from-home jobs, despite remote positions only making up fifteen percent of the listings.

Work-from-home positions also extend opportunities to people with disabilities, where commuting and office designs are a hindrance in many cases. Remote job positions help promote an inclusive workplace, making work more accessible for wheelchair users and other disabled people.

11. Reduced Turnover Costs

Recruitment, onboarding and training new staff isn’t cheap. According to Zippia, 31% of new employees quit within the first six months, and the average cost to replace an employee is six to nine months of their salary. 

Addressing the needs and preferences of your employees makes you a stronger ally in the workplace and inevitably reduces turnover. Cisco’s Global Hybrid Work Study found that of 28,000 survey respondents, 62% said that access to remote work correlates with their decision to stay at or leave a job.

Understanding that an increasing amount of people prefer to work from home, embracing remote roles would help your business boost employee satisfaction and loyalty. 

12. Higher Employee Wellness

A man wearing headphones and sitting on a couch with a laptop in front of him

Having the most ergonomic setup isn’t the only necessity for optimal productivity. From room temperature to lighting preferences, employees feel more comfortable and focused when able to customize their own workspace. Working from home allows your team to set up an office or workspace that suits both their physical and mental health needs.

By prioritizing employee wellness, remote work can even help your business save on insurance, research shows. In a remote or at least hybrid work environment, there are fewer injuries and accidents onsite, leading to fewer work compensation claims.

With an improved loss ratio, employers would experience lower health insurance premiums.

Incorporate Workforce Planning to Maximize the Benefits of Remote Work

Despite what the headlines may tell you, remote work continues to be in demand.

As you organize your workforce for a remote world, forecast and report on labor expenses more easily with workforce planning software

With Vena, you can plan salaries, benefits and taxes at a granular level—by department, employee and position. Vena integrates data from your HRIS, allowing you to dynamically model changes to payroll, tax and fringe benefit rates.


A green banner that reads: "Set your remote employees up for success with this work-from-home checklist," with a red "Download" button



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