How Can Work From Home Benefit An Organization

Published by MBA Skool Team, Published on January 17, 2015

Telecommuting is totally in these days (Popularly called WFH (Work from Home)! So what is it? It is defined as a regular, routine work arrangement that allows the staff member to fulfill his/her primary job responsibility at a location other than his/her Vanderbilt work site, such as at home. And the reality is that it’s growing.

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A lot has been already talked about how beneficial it is for an employee (like raising his productivity, more employee satisfaction etc.) But what about the other side? Can organizations too benefit from this? If yes, how much? And can it be a sustainable model? Let’s have a look at it!

According to me organizations can save and utilize this policy much more to benefit them. So what are the benefits?

1. Higher employee satisfaction – this surely translates into better productivity at work place and more job satisfaction. In the long run this will translate into low absenteeism and attrition rate.

2. Company growth – A company in the long run will be able to grow due to employee commitment.

3. Reduced costs for company – If followed diligently companies can save lot of costs like on chairs, electricity, transportation of employees, office space etc. Infrastructure costs can sharply be reduced by this. According to data a typical business would save $11,000 per person per year. By reducing office space, Ctrip saved what would amount to $2,000 an employee annually.

So where does the future lie?

No doubt few questions have been raised on sustainability of Telecommuting both from organization and employee perspectives. But the real question is Telecommuting avoidable?

Let’s look at few Industry trends.

1. With the ever increasing population, can we sustain it with our infrastructure growth? – With the current rate of growing population it is highly imperative to understand the infrastructure costs for the company. More population means more jobs means more resources and which ultimately translates to more organizational costs (like office space, land, electricity etc.) But we all know the grim reality that resources are constrained. However, by adopting a telecommuting policy this can be controlled. For e.g. Cisco systems Bangalore has a flexible WFH policy and infrastructure is accordingly designed. For e.g. A team with 10 members is allocated 8 cubes only. This is done by keeping in mind the average number of WFHs done in a week. This hence encourages employees for doing WFH.

2. Technological Innovations – We all realize that the industry as a whole (not just IT) is moving towards cloud, virtualization and SaaS(Software as a Service). When data is becoming mobile because of these technological innovations where and why is the need of the worker to be traditional?

Hence I think going ahead telecommuting will become a reality. The idea is to come up with a telecommuting plan that an organization can leverage on and hence reduce their costs.

This article has been authored by Supriti Bhan from SPJIMR Mumbai


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