5 Ways Working from Home Could Save Your Business Money {Ad} – Mummascribbles
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It’s no secret that working from home can help your employees to achieve a better work / life balance, but it can save your company money too. In this article, we’re looking at five ways working from home can save your business money.
Since the pandemic, around 46.6% of employees conduct some of their work from home and, as a result, enjoy a more enjoyable work/life balance. While this is great news for staff, it’s also good news for businesses who can actually save money and avoid debt recovery processes by introducing a work-from-home or hybrid model.
In this article, we’re looking at five ways in which employees working from home could save your business money.
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Utilities and facilities
When it comes to saving your business money through home working, the first and most obvious way that this happens is in the use of utilities and facilities. When employees are not in the office, they’re not using electricity and water, which are considerable costs these days. They’re also not making use of tea, coffee, milk, toilet roll and other sundries which a business will usually pay for on a weekly or monthly basis.
Your business will also save money on hiring cleaners when all or most staff are working from home – which can add up to a considerable saving over time.
Property rental
Since the pandemic, many companies have successfully made the move to 100% remote working and, as a result, no longer need to maintain an office. This can save a business thousands of pounds every month, as rental of premises tends to be one of a company’s biggest expenses.
In most cases, commercial property leases will run for a year or more, so it’s worth looking ahead to see if full remote working may be right for your business in the future.
Productivity
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Studies show that employees who work from home some or all of the time are happier and therefore more productive. To begin with, employees tend to start work earlier due to the fact that they no longer have to travel to work. They also tend to work longer hours at home as they feel more comfortable and are free from distractions such as colleagues and general noise.
Tax
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More good news for businesses is that your company could save money on tax by allowing employees to work from home.
Business tax is made up of three factors – payroll, sales and property. If you no longer have business premises or you downsize to a smaller premises, you could save a significant amount of tax money every year which can be used to grow your business.
Personnel
These days, the work-from-home model is very much considered to be a perk – and one which is just as important to employees as bonuses and other benefits. Offering remote working can save businesses money as they can attract top talent without having to increase starting salaries. In fact, many people say that they would accept a lower salary if they could work from home.
Your business would also be able to do away with paying out relocation cash to top talent.
Some businesses have also made the controversial move of reducing the salaries of existing staff on the basis that employees no longer have ‘go to work expenses’ such as travel, lunches, and work attire. While you do have the right to do this, it’s not recommended as such practices tend to be bad for morale and can lead to an extremely disgruntled workforce.
What do employers pay for when staff are working from home?
When your staff are working from home, there are a few things that an employer is expected to pay for and these can include:
- Office furniture: an employer is responsible for ensuring that an employee has a desk and an office chair to use while working from home.
- Equipment: it is the employer’s responsibility to provide equipment such as a computer for use by the home-working employee.
- Stationery: your business should pay for stationery items such as paper, pens and printer ink.
- Telephone: the employer should provide, where necessary, a telephone and cover the cost of all business calls.
While not strictly necessary, a business may also offer home-working employees a contribution towards electricity and wifi costs.
Moving the Working World Forward
In today’s world, working from home is easier than ever before, as we have many tools available to us to ensure seamless communication, whether your employees are working in Barking or Bulgaria. As well as retaining existing staff, offering home working can help you to attract future employees as it allows you to cherry pick talent from anywhere in the country or, in fact, the world.
Many old school employers still have concerns about the idea of their employees working from home – not helped by some of the jokes which fly around social media – and it may not be right for every company. However, this model can be extremely effective, and can ultimately save your business money and keep you out of debt.
Please be advised that this article is for general informational purposes only, and should not be used as a substitute for advice from a trained business professional. Be sure to consult a business professional for advice on business finances. We are not liable for risks or issues associated with using or acting upon the information on this site.