Remote Work
November 23, 2023

What Are the Benefits of Working Remotely for Employers?

The benefits of working remotely for employers can’t be overlooked in the modern business environment. Cost savings, increased productivity, employee satisfaction and retention, and giving employees the freedom to work from anywhere and spend more time with their families are just a few.

On this page

Remote employees are up to 40% more productive than their traditional office counterparts, with organizations saving an average of $11,000 annually per part-time remote worker. That underscores the benefits of working remotely in boosting a company's bottom line. Playroll HR and payroll management software help businesses streamline their remote working environment for easier management of remote teams.

The Growing Remote Work Trend

Remote working is also known as working from home or telecommuting. Employers give employees the flexibility and autonomy to work from anywhere other than the traditional office space. Workers can do their jobs from their homes, a co-working space, a private office, or any other location.

According to the UK Parliament Post, about 12% of the UK workforce had worked from home at some point before COVID-19. The pandemic restrictions accelerated the movement, pushing 49% of UK employees to work from home in 2020-2021.

Though the numbers have subsided through 2022-2023, the work-from-home trend remains resilient. About 25%-40% of UK employees continue working full time from home or have embraced a hybrid work week. That’s because working remotely benefits both employers and employees.

man typing benefits of working remotely

7 Benefits of Working Remotely for Employers

This article covers the benefits of working remotely for employers to equip business owners with the knowledge they need to embrace this evolving workforce trend.

  1. Increased Productivity and Efficiency

One of the top benefits of working remotely is increased productivity. Several studies and research, including Gallap, Havard Business School, Stanford University, and the University of Melbourne, all arrive at the same conclusion: remote workers are 35-40% more productive, and produce results with 40% fewer quality defects than their traditional office colleagues.

The top reasons why remote employees are more productive and efficient include:

  • Less commute.
  • Flexibility to choose their working hours.
  • Fewer distractions, like office politics.

That leaves them more time to focus and deliver more work, which has been found to be equivalent to a full day’s work per week.

  1. Cost Savings

Working remotely benefits employers with office-related cost savings. According to Global Workplace Analytics, companies are saving an average of $11,000 annually per part-time remote worker. That equates to a 21% higher profitability.

Top cost-saving areas when employers embrace remote work include:

  • Overhead expenses, like office rent and maintenance costs.
  • Utilities expenses, including electricity, water, etc.
  • Office equipment and furniture.
  • In-office perks, like coffee, tea, lunch, etc.
  • Travel and entertainment subsidies.

For instance, Google is estimated to have saved over $1 billion by allowing employees to work from home during the pandemic. Our HR cost calculator helps you find the true cost of hiring remote employees so that you can forecast and plan accordingly.

  1. Improved Employee Satisfaction and Retention

Employee satisfaction and retention are among the top benefits of working remotely that can help companies reduce hiring costs. A study by Owl Labs shows that employers offering remote work have a 25% lower employee turnover.

Top reasons why employees are more likely to stick longer in a remote working environment include:

  • Work-life balance flexibility.
  • Ability to relocate and work from anywhere.
  • Freedom to manage their time and priorities.
  • Increased autonomy and a sense of responsibility.
  • A sense of trust by the employers, which keeps them more engaged.
  1. Enhanced Access to a Diverse Talent Pool

Another top benefit of working remotely is that it helps employers break down geographical barriers and access a wider talent pool. Employers are not restricted to local talent, or recruiting within commuting distances. That increases the chances of finding the best applicants with specialized skill sets and competencies for the job.

And, about 80% of workers would turn down a position that doesn't offer flexible working. Therefore, working from home enables companies to attract a skilled workforce and reduce training and onboarding costs.

Playroll.com’s Global Talent Finder helps employers find and hire the perfect job candidates for their global team.

  1. Better Disaster Preparedness and Business Continuity

Remote employees don't have to be on site. They plug into company networks and systems using remote computers and easily collaborate on projects using remote management tools.

That helps ensure resilience and business continuity during unusual times, like natural disasters, local or national emergencies, and global health crises like COVID-19.

For instance, companies that embraced remote working during the COVID-19 restrictions and lockdowns fared better and ensured business continuity.

  1. Environmental Impact and Corporate Social Responsibility

Working from home means fewer commutes, hence reduced carbon print. For instance, greenhouse emissions could be reduced by 54 million tons if all remote-compatible jobs are given to remote employees. That aligns with corporate social responsibilities, which influence consumer and investor decisions.

Therefore, embracing remote work is a great way for companies to show potential customers, employees, and investors that they care about the environment.

  1. Increased Diversity and Inclusion Efforts

Building a diverse and inclusive workforce is among the top benefits of remote working. Companies that have diverse, inclusive workforces see a 12% increase in performance and a 1.7x increase in innovation levels.

Remote work allows sourcing talent from people with different geographical, socioeconomic, and cultural backgrounds. Again, individuals who would struggle to work in a traditional office setting get an opportunity to work from home on their own schedule. For instance, stay-at-home moms, people with disabilities, caregivers, or folks who can't afford or won’t like living in cities.

GitLab is a good example of a company that has a diverse team of remote workers in more than 68 countries.

Remote Work Challenges and Solutions

Though the benefits of working remotely are numerous, remote work has its challenges, including:

  • Overcoming communication barriers and cultural differences.
  • Complying with labor laws and regulations in different countries.
  • Building remote work infrastructure and providing remote working tools.
  • Finding the best HR and payroll solutions to manage remote teams effectively.

Businesses can overcome these challenges by partnering with a reliable HR and EOR platform that offers the expertise and payroll solutions required to hire and manage locally compliant global teams.

Managing Global Teams With Playroll

Per StandOutCV 57% of British workers want the option to work from home, and 49% of young Millennials and Genz will quit if asked to return to the office full-time. Thus, companies should explore and embrace remote work options in their job offerings to reap the benefits of working remotely.

Playroll's HR and payroll management platform offers the EOR expertise, HR support, and payroll solutions businesses need to hire and manage remote teams effectively. Take advantage of Playroll.com's EOR payroll for remote workers to start realizing the benefits of remote working today.

Remote employees are up to 40% more productive than their traditional office counterparts, with organizations saving an average of $11,000 annually per part-time remote worker. That underscores the benefits of working remotely in boosting a company's bottom line. Playroll HR and payroll management software help businesses streamline their remote working environment for easier management of remote teams.

The Growing Remote Work Trend

Remote working is also known as working from home or telecommuting. Employers give employees the flexibility and autonomy to work from anywhere other than the traditional office space. Workers can do their jobs from their homes, a co-working space, a private office, or any other location.

According to the UK Parliament Post, about 12% of the UK workforce had worked from home at some point before COVID-19. The pandemic restrictions accelerated the movement, pushing 49% of UK employees to work from home in 2020-2021.

Though the numbers have subsided through 2022-2023, the work-from-home trend remains resilient. About 25%-40% of UK employees continue working full time from home or have embraced a hybrid work week. That’s because working remotely benefits both employers and employees.

man typing benefits of working remotely

7 Benefits of Working Remotely for Employers

This article covers the benefits of working remotely for employers to equip business owners with the knowledge they need to embrace this evolving workforce trend.

  1. Increased Productivity and Efficiency

One of the top benefits of working remotely is increased productivity. Several studies and research, including Gallap, Havard Business School, Stanford University, and the University of Melbourne, all arrive at the same conclusion: remote workers are 35-40% more productive, and produce results with 40% fewer quality defects than their traditional office colleagues.

The top reasons why remote employees are more productive and efficient include:

  • Less commute.
  • Flexibility to choose their working hours.
  • Fewer distractions, like office politics.

That leaves them more time to focus and deliver more work, which has been found to be equivalent to a full day’s work per week.

  1. Cost Savings

Working remotely benefits employers with office-related cost savings. According to Global Workplace Analytics, companies are saving an average of $11,000 annually per part-time remote worker. That equates to a 21% higher profitability.

Top cost-saving areas when employers embrace remote work include:

  • Overhead expenses, like office rent and maintenance costs.
  • Utilities expenses, including electricity, water, etc.
  • Office equipment and furniture.
  • In-office perks, like coffee, tea, lunch, etc.
  • Travel and entertainment subsidies.

For instance, Google is estimated to have saved over $1 billion by allowing employees to work from home during the pandemic. Our HR cost calculator helps you find the true cost of hiring remote employees so that you can forecast and plan accordingly.

  1. Improved Employee Satisfaction and Retention

Employee satisfaction and retention are among the top benefits of working remotely that can help companies reduce hiring costs. A study by Owl Labs shows that employers offering remote work have a 25% lower employee turnover.

Top reasons why employees are more likely to stick longer in a remote working environment include:

  • Work-life balance flexibility.
  • Ability to relocate and work from anywhere.
  • Freedom to manage their time and priorities.
  • Increased autonomy and a sense of responsibility.
  • A sense of trust by the employers, which keeps them more engaged.
  1. Enhanced Access to a Diverse Talent Pool

Another top benefit of working remotely is that it helps employers break down geographical barriers and access a wider talent pool. Employers are not restricted to local talent, or recruiting within commuting distances. That increases the chances of finding the best applicants with specialized skill sets and competencies for the job.

And, about 80% of workers would turn down a position that doesn't offer flexible working. Therefore, working from home enables companies to attract a skilled workforce and reduce training and onboarding costs.

Playroll.com’s Global Talent Finder helps employers find and hire the perfect job candidates for their global team.

  1. Better Disaster Preparedness and Business Continuity

Remote employees don't have to be on site. They plug into company networks and systems using remote computers and easily collaborate on projects using remote management tools.

That helps ensure resilience and business continuity during unusual times, like natural disasters, local or national emergencies, and global health crises like COVID-19.

For instance, companies that embraced remote working during the COVID-19 restrictions and lockdowns fared better and ensured business continuity.

  1. Environmental Impact and Corporate Social Responsibility

Working from home means fewer commutes, hence reduced carbon print. For instance, greenhouse emissions could be reduced by 54 million tons if all remote-compatible jobs are given to remote employees. That aligns with corporate social responsibilities, which influence consumer and investor decisions.

Therefore, embracing remote work is a great way for companies to show potential customers, employees, and investors that they care about the environment.

  1. Increased Diversity and Inclusion Efforts

Building a diverse and inclusive workforce is among the top benefits of remote working. Companies that have diverse, inclusive workforces see a 12% increase in performance and a 1.7x increase in innovation levels.

Remote work allows sourcing talent from people with different geographical, socioeconomic, and cultural backgrounds. Again, individuals who would struggle to work in a traditional office setting get an opportunity to work from home on their own schedule. For instance, stay-at-home moms, people with disabilities, caregivers, or folks who can't afford or won’t like living in cities.

GitLab is a good example of a company that has a diverse team of remote workers in more than 68 countries.

Remote Work Challenges and Solutions

Though the benefits of working remotely are numerous, remote work has its challenges, including:

  • Overcoming communication barriers and cultural differences.
  • Complying with labor laws and regulations in different countries.
  • Building remote work infrastructure and providing remote working tools.
  • Finding the best HR and payroll solutions to manage remote teams effectively.

Businesses can overcome these challenges by partnering with a reliable HR and EOR platform that offers the expertise and payroll solutions required to hire and manage locally compliant global teams.

Managing Global Teams With Playroll

Per StandOutCV 57% of British workers want the option to work from home, and 49% of young Millennials and Genz will quit if asked to return to the office full-time. Thus, companies should explore and embrace remote work options in their job offerings to reap the benefits of working remotely.

Playroll's HR and payroll management platform offers the EOR expertise, HR support, and payroll solutions businesses need to hire and manage remote teams effectively. Take advantage of Playroll.com's EOR payroll for remote workers to start realizing the benefits of remote working today.

Scale the way you work, with Playroll.

Let's grow your distributed workforce, today.