Article Contributed by Conrad Ford
In May 2013, the Trades Union Congress revealed that 13% more people in the United Kingdom were working from home than was the case five years previously. In the United States, the Telework Research Network revealed in February 2013 that one in five American workers were based at home for at least one day per week, and forecast a 63% increase in home working over the next five years. But is it a good idea to let staff work from home?
Reasons why home working may be good
Increased productivity
Many people who have worked from home have reported that they get a lot more done than if they were at work. At home, there are no distractions from work-related phone calls and interruptions from colleagues. At home, people can also control the heating or ventilation to their satisfaction.
Technological advances
As technology advances, it is becoming ever easier to stay in contact with anyone who is working from home. Mobile phones, instant messages and video conferencing are all ways home workers can stay in contact with the office; or with others working from home. It is also usually possible to allow remote access to internal systems and computer files. “Remote working is easier and more effective than ever,” said Sir Richard Branson.
No commuting
Two time consuming, expensive commutes each day are a fact of life for many office workers, but of course this does not apply to home workers. Some analysts have suggested that lengthy commutes will become a thing of the past in many countries before too long, as fuel costs will be just too expensive. They predict that more and more people will need to work from home, or work in office hubs close to their home address.
People don’t have to work at home every day
Unless the issue is covered in the individual’s contract of employment, it is of course the company’s decision as to how often a particular employee is allowed to work from home. Companies may decide to allow home working on a certain number of days per week, but then insist that everyone comes in to the office on another day for a team meeting and a catch-up. Alternatively, the company might want to ask a regular home worker to come to the office each day for a period of time to complete a particular project or task.
Home workers can still be monitored
Just because you don’t see your employees all day every day doesn’t mean the quality of their work can’t be monitored. Employees can send in completed work by email, or can be asked to account for what they have done when they next attend the office. Any manager who allows staff to work from home for the first time may understandably feel uneasy, and might be thinking ‘Will they actually be working?’, However, if they really are shirking, then there are some simple ways of discovering this. Assuming their contract allows, companies can also withdraw the ‘privilege’ of working from home if it has doubts about how some staff are reacting to their new found freedoms.
Can save the company money
If the company does not need to accommodate as many people in the office, savings can be made on IT costs, utilities, cleaning costs and costs of renting office space.
Can reduce stress
Work-related stress costs companies a great deal of money. Allowing people to work from home can help in this respect.
May help recruitment
A company who offers the chance to work from home may receive more applications for roles, thus allowing them to select from a wider talent pool. Staff turnover may also be lower if home working is allowed. In a Stanford University study “job attrition rates fell by over 50%” amongst home workers.
Reasons why home working may be bad
Less flexibility
As a manager of staff who might work from home, you may need to do more advance planning than might otherwise be the case. Calling a team meeting, or allocating an urgent piece of work to a team member might be much more difficult if they are not in the office.
Does everyone know how to contact home workers?
Of course it is not the case that just because people are working from home that they cannot be contacted – as we saw above there are telephones, emails and video conferencing available. However, does everyone in the office who might want to contact a particular person know how to get hold of them? If people regularly approach one of your team members with technical queries, will they still be able to do so if they are not in the office?
Access to facilities in the home
Whilst most people now have a home computer and internet access, not everyone does. Also, just because they have these facilities in the home does not necessarily mean they have access to them all day. Who else lives with your employees, and will they need to share use of the home computer, or the video call facilities?
Confusion over the terms of home working
An employer may need to set the terms on which home working is done before it is allowed. For example, is an employee expected to be at home throughout normal office hours, or can they go out for a little while during the day and catch up with work tasks in the evening?
Personal contact remains valuable
In some business situations, there is still no substitute for face-to-face contact, especially when selling or when conducting important negotiations.
Less opportunity for group discussions
Technology still allows formal team meetings to take place if some or all of the team are at home. But what can be missed is the informal interaction. When Yahoo banned home working in February 2013, its memo to staff on the subject read: “Some of the best decisions and insights come from hallway and cafeteria discussions, meeting new people, and impromptu team meetings.”
May reduce the variety of tasks they can perform
Depending on the role in question, it may not actually be possible for an employee to carry out their full range of work tasks from home. Home workers may therefore end up doing just one or two repetitive tasks, whilst those who continue to work from the office may be able to get involved in projects and in a wider range of tasks. Home workers may find themselves at a disadvantage when it comes to salary increases and internal promotions, perhaps because they have a less varied curriculum vitae, or simply due to the ‘out of sight, out of mind’ principle.
Distractions
We have already looked at the issue of distractions in the workplace. However, there can certainly be distractions at home. Cold calls on the telephone, callers at the door and the urge to perform domestic tasks can all play their part.
Social considerations
Especially in urban areas, people spend less and less time with their neighbours. For many, the workplace is the main place where friendships are formed, and of course home workers will not get this opportunity.
Conrad Ford is Managing Director of Funding Options, an award-winning team of business finance experts who specialise in helping businesses get the loans they need.