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The National Bureau of Economic Research has found that 37% of American jobs can feasibly be done remotely. Location flexibility can be a boon for employees, since staying home can save them money on commuting, child care and more. Employers also stand to benefit: Although they might have less control over a physically distant team, remote arrangements can save them money too. Here’s what employees and employers alike should know.
The COVID-19 pandemic has led to drastic increases in work-from-home arrangements – and opportunities to assess how much money former commuters can save.
Near the start of the pandemic, Zippia found that remote work could cut employee expenses by $4,600 annually across all categories. A 2021 LendingTree study also found that shifting to remote work helped the average American reduce their debt. Around the same time, Bankrate found that nearly 60% of remote employees discovered that working from home improved their financial situation.
Employers benefit from work-from-home arrangements as well. A fully remote team eliminates the need for an office and all the overhead that comes with it. Even companies that keep their offices but switch to half-remote, half-in-person arrangements can reduce costs. According to Global Workplace Analytics, this arrangement can save a small business owner $11,000 per employee per year. That’s money you can pour back into your team.
Max Freedman contributed to the writing and reporting in this article.