The Cost Saving Benefits of Hybrid Work for Businesses
By Varun Bodhi
America's demand for the hybrid work model has continued to increase since Covid and the desire for flexibility is seeing no signs of slowing down.
Many workers now only accept roles if a hybrid work model is in place, and people have become accustomed to the flexibility which was provided during Covid. Since a large number of people demand hybrid work, understanding the cost saving benefits of a hybrid work model can be pivotal in saving your business time and capital.
Reduce Office Space
The hybrid work model presents a great opportunity for businesses to downside their office space by adroitly creating a rotating employee schedule.
Business owners can select which days an employee will work at the office, or rotate teams in the office according to the business’ needs. Through this, a business can reduce their current office space, electricity expenditure and the amount of supplies they need such as stationery, paper, desks, monitors, computers etc.
Other than opting for a smaller office space, businesses can also make a complete transition to a flexible workspace. For example, coworking spaces can be rented on a “need-basis” and provide extremely flexible leases which allow monetary flexibility.
All of these costs which accumulate overtime end up impeding the growth of many small to medium businesses. Eventually, the capital saved from reducing your real estate footprint can be redirected towards strategic growth.
However, before considering to completely switch to a flexible workspace it is important to do further research on what coworking is.
Reduce Employee Churn Rate
The Great Resignation phenomena which sparked in the peak of the pandemic is showing no signs of slowing down. Regardless of the pandemic becoming less severe, people are still quitting their jobs at a high rate.
Although factors such as job satisfaction also contribute to the rates of quitting, flexibility is also one. People are starting to resonate with the sentiment of work being something they do and not somewhere they go.
If employees feel happier and less stressed by working in a hybrid work environment, then they are more likely to stay with the organization. Upon an employee quitting, it’s estimated that 50-60 percent of the employee’s annual salary is spent by the business to find a replacement.
The arduous process of hiring and training takes a lot more time and money than most understand. Keeping your staff satisfied with their working conditions by incorporating hybrid work will prove to save money in the long run.
Business owners aren’t the only ones whom save money from a hybrid work model. The weekly commute to work costs anywhere from $35 to $70, which over a year can add up to at least $2000 or more.
According to a report by Adaptavists, more than 40% of people have anxiety about returning to the office and 34% of it derives from the commute. Employees which have hybrid work conditions can save money with fewer commutes, enjoy more sleep and thereby feel more inclined to take on the work day.
Fewer Sick Employees
An office which has every employee onsite is likely to have someone unwell present at some stage. The likelihood of illness spreading is obviously increased with a full office.
Overall, businesses lose around 25.5% of their total payroll because of absenteeism. A hybrid work model ensures there are fewer employees in the office at any given time which vastly reduces the chances of spreading illness.
Furthermore, many employees at period will take a fake sick day. This can arise from various reasons but feeling fatigued or unwilling to come into the office are two common reasons. A hybrid office can mitigate this by giving workers a few days to work from home, and if someone is sick, they may be well enough to continue their tasks remotely.
For businesses which are unsure on how to structure and facilitate a hybrid work model, having access to a hybrid and remote teams policy template is a good start.
Talent across the World
Another cost saving benefit of hybrid work is having access to a global talent pool. Often time’s projects require high skilled employees in certain technical areas, and sourcing someone in-house or looking to hire someone to fulfill this can be very expensive.
By implementing a hybrid work model, your business is open to selecting workers which are overseas. There are particular countries which are home to more niche skills which you may otherwise find difficult to locate in your own country.
Due to varying labour laws, wages and currency strength across countries, businesses can leverage this to hire employees overseas at a lower cost. Furthermore, if managed with strategy, your business can be operating 24/7 by having employees carry out tasks because of different time zones.
According to the Harvard Business Review, a motivated employee with high levels of job satisfaction will generate an additional $9,078 per year. With 43% of workers desiring hybrid work conditions and 45% of employees feeling more productive working hybrid (compared to only 29% feeling productive in the office), workers are much more likely to be productive.
While this technically isn’t saving money, it’s adding revenue which is a win-win situation.
Is hybrid work the future?
The primary takeaway is that whilst majority of employees desire flexibility and the currently this structure of work is trending, not everyone will be able to work hybrid. This is dependent on the worker’s position and if their tasks can be completed in the same time and manner while working remotely. However, for many employees hybrid work is the future and the demand for flexibility will never fade away.
If you’ve got any questions call us +1 212 220 8500 or fill in your information below and we’ll get back to you shortly.