Work from home staff can save companies £6k a year

If you run your own business, you’ll appreciate the need to save money and cut costs wherever possible – but have you ever considered flexible working as a way to cut overheads?

If not, now could be a good time to look into this as the UK’s flexible working laws are now in full effect, meaning more and more workers can benefit from working from home.

And before you get into a blind panic about employees not pulling their weight while at home, consider that research from the London School of Economics found those who are offered flexible working are actually happier and more productive workers.

Then consider the savings you could make…

How much could a flexible workforce save you?

Data from Global Workplace Analytics – a company conducting independent research and consults on workplace issues and opportunities – shows how companies can save an average of $11,000 (6,810) per year for every employee who spends half of their time working remotely.

  • Around $3,000 (£1,857) is saved per telecommuter in reduced office sizes and utility bills
  • $5,750 (£3,560) is saved per telecommuter by increasing productivity
  • $750 (£464) per telecommuter by decreasing turnover through increased flexibility and happiness
  • And $1,100 (£681) per telecommuter due to the fact that remote workers are less likely to take sick days

These numbers don’t include estimated health care savings – people who work from home are able to take better care of themselves due to a better work/life balance.

And although the research is US based, there’s no reason why the figures won’t stack up on this side of the Atlantic.

However, to reap the benefits, you must make a sure employees stick to some strict work from home rules.

The work from home rules

Get dressed for work each morning – even though you might be sat at home all day getting dressed for work will help you get in the working mindset. Sitting around in your comfies all day can have a negative affect on productivity.

Separate business and pleasure – although you may be tempted to sit in the living room, working from your laptop with the telly on, this is a sure fire way to waste time. So set up a separate workspace away from all the distractions of home.

Keep in touch with your team – you need to be able to conduct your business from home exactly as you would while in the office, so keep in touch with colleagues over email and conference call.

And for more top tips, read our guide How to work from home.


  1. […] And so Work From Home Week is asking employers to embrace the opportunity as a way to boost happiness and productivity among their employees – not only does working from home lead to greater morale among employees, it can save employers up to £6,000 a year! […]

    January 19, 2015

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