6 Reasons Why Remote Work Could Save the Economy
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Today, more than half of the working world is engaged in remote work. While this flexibility has its benefits, there’s also a growing body of evidence that remote work could be one of the keys to unlocking economic growth. Presently, advanced economies are struggling with high levels of automation and rising labor costs. This could lead to a future where many jobs are cut or become less attractive due to limited availability and prohibitive cost. Fortunately, remote work could help tackle these issues by making it easier for companies to operate at scale and lower costs through virtual collaboration. In this blog post we outline 6 reasons remote work could save the economy:
Better collaboration and communication
When teams operate in virtual environments, there are many benefits to be found. Beyond the obvious benefits of working with a reduced number of colleagues, other factors become more prominent. For instance, distributed teams can more easily collaborate because communication doesn’t rely on geography. This can help improve the quality and volume of communication between team members. It also means that distributed teams can organize virtual team events like team-building exercises, video conferences, or group discussions. When communication is critical, distributed teams can also make use of tools like video conferencing, screen sharing, and software-based whiteboard software. Virtual teams also have the potential to improve the communication skills of employees. Digital literacy is becoming more and more important in the workplace. With distributed teams, employees can help each other improve their digital skills. This could mean sharing knowledge on online tools or tools available in the workplace.
Reduced travel costs and carbon emissions
Another key benefit of remote work is the potential to reduce travel costs and carbon emissions. This is particularly true for industries that are heavily reliant on travel, such as healthcare and legal services. For instance, if a remote worker is relocated for their job, they can accept the transfer using remote work. In this way, there is no need for travel to access new clients or colleagues. Travel is also an issue for many professionals. Remote workers can accept job offers from locations that would allow them to reduce travel costs, particularly for longer trips. This can make sense for some professions, such as teachers, who often work in remote locations. Regarding carbon emissions, many businesses now see the value of reducing travel. This can mean encouraging employees to work remotely by offering flexible working hours, travel benefits, and/or remote benefits.
More flexibility and work from anywhere
Remote work also opens up opportunities for employees to be more flexible and work from anywhere. This can mean employees can take a job that might be located in a rural location where they don’t live. They can then work remotely from wherever they want. Remote workers can also establish work-life boundaries. This can mean employees have a clear separation between their work and personal lives. This can help them better focus on a role and avoid the distractions that are common in many jobs. Remote workers can also decide when and how often to work. This can be critical for some employees, such as parents who need to decide whether to take a job that will impact their family time.
A more inclusive workplace
Finally, remote work can be a great way of promoting inclusion in the workplace. This can mean remote workers are more likely to have diverse team members from different backgrounds. This can help organizations diversify their talent pool and build a more inclusive workplace. Remote work can also help increase gender parity in the workforce. This is particularly true for industries such as healthcare and technology where a high number of jobs are based in remote locations. This can mean remote workers can make family commitments that are often assigned to women, like taking care of children or elder relatives. Remote work can help remote workers avoid these issues by helping them balance their work responsibilities with their family commitments. Remote work can also make it easier for remote workers to schedule regular face-to-face meetings.
Shorter hours, reduced turnover, and training cost
Another way that remote work can save businesses money is by reducing the overall cost of headcount. With fewer employees needed to run a company, firms can reduce their training and recruitment costs. This can mean that even firms that have limited budgets for training can better prepare employees for new roles and technologies. Reduced headcount can also reduce the costs associated with hiring and training new employees. Because remote workers are more likely to be self-sufficient, they are less likely to require hiring and training. More efficient hiring can also reduce employee turnover. This can have financial benefits for firms that have high employee turnover rates.
Conclusion
With the current level of automation, more than half the workforce could be at risk of redundancy shortly. As a result, many economists are calling for governments to invest more in education and skills to help prepare workers for future jobs. To combat this threat, it’s important to promote remote work. Remote work can help people balance work and family responsibilities by allowing them to work flexibly and from anywhere. Remote work can also help people who need flexible work arrangements to maintain a balanced work/life schedule.
