Classroom work vs Homeoffice

In a digital age, every department in every industry requires the optimization of costs and processes, which is why the human resources area has begun to migrate to a more intelligent format where offices are not required, establishing with it a strategy that increase income, while reducing costs. This accompanied by an evident increase in productivity compared to an average office worker.

It is surprising that almost no management strategy implemented in companies today meets the criteria that homeoffice offers. The reduction of personnel, for example, does achieve a reduction in costs but strongly penalizes income, slowing down business growth. There are other strategies such as reorganization and centralization, however unfortunately it takes more time and much less benefit from them.

Although the management areas have great proposals, at the administrative level, the easiest and most immediate strategy in terms of productivity and cost reduction is to allow the work team to work from home, remotely, instead of establishing A schedule and work area are mandatory on a daily basis. Supporting cost reduction.

PRODUCTIVITY INCREASE

Harvard Business Review cites a major historical study, where workers at a famous Chinese travel website divided their employees into 2 groups, Group A worked in the office, while Group B had the option to work from home. .
Said study revealed that those who worked from home achieved a higher fulfillment of goals by 13.5% compared to those who physically worked from the offices. This translates to almost an extra day of work a week.

Another study reveals that those who work from home 3-4 days a week have a 33% more sense of commitment and 25% less of feeling less integrated into their team than those who attend in a traditional format. their works.

This can translate into increased commitment and increased productivity with an obvious and advantageous cost reduction.

Dropout rate

Employee turnover in any company is much higher than assumed. Recruiting, hiring and training a replacement generates costs and has an average learning curve of 2 years, which are reflected in the cost of said employee.

In contrast, employees who work from home are more satisfied with their work and their dropout rate is lower. These studies conclude that this format of working from home facilitates hiring, especially for Millennials. The University of Akron found that 41% of the interviewees affirm that you prefer electronic communication in relation to direct contact with your coworkers.

Costs reduction

The University of Sydney conducted another study with more than 47,000 workers, concluding that they are more productive and happier working if they have private offices, that is, completely closed. However, this study has a problem, it never considered the alternative of working at home. Working at home allows you to perform tasks that require concentration and be free from distractions, privacy and tranquility allow 

Efficiency and time reduction in carrying out these tasks. 

In addition, these employees can obtain the lowest installation costs, without compromising productivity. In addition to this, not having to require furniture, they are less likely to expect elegant, therefore expensive, office supplies. This means, lower costs.

Reduction of days due to illness

According to statistics, occupational diseases represent an average of $ 1 million a day for companies.

When an employee becomes ill, they are highly likely to work from home, however this refers to the absence of stress from transportation and interaction with coworkers.

Another advantage of employees working from home, lies in not transmitting diseases and / or germs avoiding contagion and with it the chain of absences from work that undermine overall goals and objectives.

Reduction in payroll costs

Payroll represents one of the largest expenses for companies, especially small ones, as it consumes 30% of companies’ gross income and if said company is a startup, it still does not generate much income.

The home office implies an 8% salary cut, this can make sense if we consider that working from home reduces many hours of travel, giving us time to do a variable of things.

Assuming the various payroll costs (30%) coupled with net margins (3%) and cost reduction (8%), this translates into an approximate increase of (3%) in the final margin of the company, doubling profitability. All this without taking into account the increase in productivity of 13% that we mentioned before.  

There is currently no smarter management strategy as such than allowing employees to work from home. This coupled with traditional competition thinking and the traditional employment format. It will be necessary to see at what moment some of the big renowned companies are encouraged to experiment with a new format and thus learn about the benefits it can provide.

by Abdullah Sam
I’m a teacher, researcher and writer. I write about study subjects to improve the learning of college and university students. I write top Quality study notes Mostly, Tech, Games, Education, And Solutions/Tips and Tricks. I am a person who helps students to acquire knowledge, competence or virtue.

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