In a world where technology has provided innovative business solutions, technology has allowed businesses to shift to remote workplaces, which as a result has changed the trajectory of business strategies to recruit new talent.
Some of the nation’s largest tech hubs, such as New York City, Silicon Valley, and Seattle, have found that employees are willing to accept a salary reduction for the ability to work remotely. However, those who would relocate with a salary reduction also noted that the reduction must not exceed 10% of their salary. Other surveyed employees aren’t afraid to push back on salary reductions for an opportunity to work remote arguing that doing so devalues the employees’ labor.
Benefits to Remote Work
Employees may enjoy:
- Reduced transportation costs. Because employees do not need to commute, money spent on gas, public transportation, or vehicle repairs and maintenance can be reduced.
- Tax breaks. IRS Form 8829 provides “Expenses for Business Use of Your Home,” where individuals may deduct business expenses that apply to part of his or her home used exclusively for business on a regular basis. You may review Form 8829 instructions for additional information.
- Lower day-to-day expenses. From lunch with co-workers or grabbing your morning breakfast from your favorite morning café, to vending machine snacks and drinks, working remote can lower your day-to-day expenses.
- Decrease price of living. While taking a salary reduction might seem counterintuitive, it doesn’t always have a negative impact. For example, accepting a 10% reduction in salary to reside in an area 15% less expensive may result in an employee’s favor. Additionally, research for the reduced salary may still be higher than the average salary of the area of residence.
Employers may enjoy:
- More productive workforce. Despite popular belief, some studies show that remote workers are more productive than in-office workspaces. This could result from no commute time, improved focus, less absenteeism, and increased availability for work.
- Cost savings. There are many areas where employers may enjoy cost savings in offering remote work options. One advantage is reduced commercial property costs. For example, companies headquartered in larger metropolitan areas, such as San Francisco, California and New York City might be able to reduce or completely eliminate physical office space(s) and shift to remote workspaces. This can be a significant cost saving for companies. Another cost-saving advantage of remote work is increased employee retention. Happy employees are more likely to remain loyal to an employer, as well as increase quality of life for remote workers. Lastly, shifting to a remote workforce can offer access to a broader range of talent and typically at a lower cost. By opening job vacancies to remote workers, employers are expanding beyond local candidates. Remote work options oftentimes assist with recruiting efforts as well, especially in times like COVID-19.
Whether you already have employees working remote and are looking for additional benefits, or would like to allow employees to work remotely but not sure where to start, VensureHR can assist you. Our HR experts can provide employers tips for remote work best practices, update employee handbooks to include remote work policies, and ensure all human resource management needs are addressed. Contact us today learn more about our full-service HR solutions.