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Why Remote Work Makes Good Business Sense

Telework is an essential model for business success and will be even more critical to successful business operations in today's new business reality.

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Written by: Julie Thompson, Senior WriterUpdated Jan 23, 2025
Shari Weiss,Senior Editor
Business.com earns commissions from some listed providers. Editorial Guidelines.
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Remote work is no longer reserved for employees of large corporations or influencers traveling the globe. The world of work has shifted toward flexible schedules, with many employees seeking a remote or hybrid arrangement.

Businesses may also benefit from a remote workforce, thanks to reduced costs for real estate and utilities. Additionally, providing remote work opportunities can attract top talent from around the globe, secure employee loyalty and diversify company culture. Let’s look at the benefits of remote work for your business and how to implement a successful remote work policy.

Why remote work is good for business

Every company or organization that wants to accomplish its mission must consider remote work for all employees, if feasible. When companies embrace this new business reality, they will discover many benefits for employees and the company itself.

1. It enhances team morale, and staff feels valued and respected.

Remote work is a long-sought-after employee benefit. Studies and reports over the last two decades have shown increased productivity, improved employee engagement, and higher levels of key performance metrics at companies that maintain a robust remote policy. 

“To keep remote workers engaged, employers must ensure that they are given the autonomy and freedom to work in a way that makes sense for them,” said Sam Naficy, CEO at Prodoscore. “This contributes to a greater sense of control and ownership over their work which ultimately translates into improved engagement.”

In a time when employee engagement is essential for company success, a remote work policy for all employees is vital for every company, agency, department and organization to consider and apply. When employees feel cared for, they often care more about their organization and its goals.

2. Remote work saves money and boosts profit margin.

Facebook recently advanced the concept of moving executives to 100 percent remote work, reducing a corporate office’s environmental impact. It found further financial benefits to adjusting executives’ pay based on locality. This move could save larger companies millions of dollars by allowing executives to work anywhere and aligning their pay with the city they live in. These are real dollars that can be used to enhance the company’s mission, reward and attract employees, and reinvest in future products and services.

3. It increases companies’ ability to hire the most qualified candidates.

Employers that expand their job pool improve the quality of their organization. A significant portion of the workforce will be eligible to retire in the next five years, and with a growing percentage of the workforce under age 30, businesses need to do more to attract the younger generation to work for them. This is especially true for workers with skills in high demand. 

“We can hire amazing talent from anywhere without being limited by office locations,” said Rosi Bremec, chief operating officer at Game Lounge. “We’ve just hired [two international employees who] are both exceptional in their skill set and the potential value they can bring to the company.

“They work in places we don’t have an office, but we don’t really care about that,” Bremec added.

Leveraging technology and allowing flexibility help smaller companies compete with larger companies like Facebook, Google and Verizon. Smaller businesses need to offer competitive opportunities to the new generation of workers to attract the most effective workforce.

4. It increases flexibility and improves work-life balance. 

With the high costs of housing, health insurance and day care, employees are working harder than ever before to balance work and family. Companies like HubSpot are setting a high bar for flexibility in the workplace.

The tech company started a program in 2021 that offers three flexible work arrangements. Office lovers can choose @office, which means working in the office at least three days a week. Hybrid workers can select @flex, which allows employees to work two days in the office and the rest remotely. The @home option gives the most flexibility, with 100 percent remote work. Perhaps the best part of HubSpot’s remote work policy is that it allows employees to change their chosen work option once every year.

“Clearly demarcating the work and life areas is the foundation for ensuring productivity,” said Alex Li, founder of StudyX.AI. “Reasonably planning working hours and setting clear goals and priorities have a good effect on optimizing productivity. Remote work demands higher self-discipline, and establishing good work habits can help employees maintain high efficiency in long-term remote work.”

5. It employs planning for the continuity of operations.

A key benefit for companies and employees related to remote work is the ability to have a continuity of operations to overcome unexpected setbacks, shutdowns and crises like the COVID-19 pandemic. Companies and organizations need to be adequately prepared for the unexpected. Companies that plan for the unplanned are prepared to handle uncertainty.

6. It boosts executive retention and reduces turnover.

Organizations that lead in allowing remote work will discover the benefit of higher executive retention and engagement. When remote or flex work is not allowed or encouraged, many employees cease striving for higher roles in the organization, impacting their professional progress and draining the pool of top-level talent.

The reality of executive turnover is essential for leaders and organizations to understand and address. This way, their best talent is not sidelined or sidetracked, especially among underrepresented populations like women executives and people of color. 

When companies strive for diversity and inclusion, they become more substantial companies. One might even express this critical principle through this theme: Improve the team to improve the organization.

Did You Know?Did you know
A whopping 98 percent of American workers desire to work remotely at least part of the time, according to the 2023 State of Remote Work report.

How to implement a successful remote work policy

In 2023, nearly 30 percent of U.S. employees work remotely. Having a remote work policy in place that clearly defines when employees can work away from the office or flex their schedule is essential for setting expectations. 

Of course, how you develop that policy matters; take the following steps to make your remote or hybrid work arrangement successful.

1. Assess business needs.

Evaluate which roles can effectively work remotely by carefully analyzing job responsibilities, required technologies, and team collaboration needs. Not all positions are equally suited to remote work, so take time to understand the specific demands of each role within your organization.

2. Develop a clear policy framework.

Create a comprehensive, written policy that outlines eligibility criteria for remote work. Document the expected work hours and availability, communication protocols, performance expectations, and technology and security requirements. This framework should provide clear guidance for employees and managers alike.

3. Invest in technology infrastructure.

Select and implement tools that enable secure remote access, video conferencing, collaborative project management, cloud-based file sharing, and robust cybersecurity protection. The right technology stack is crucial for maintaining productivity and seamless communication across different work locations.

4. Establish communication rules.

Define how team members will check in regularly, share project updates, collaborate across different work locations, and maintain team cohesion and company culture. Effective communication is the backbone of successful remote and hybrid work arrangements.

“The success of remote work hinges on good communication, work-life balance, and technical support,” Li said. “Since remote employees lack face-to-face interactions, employers need to establish a transparent and frequent communication mechanism.”

5. Create performance management guidelines.

Shift from time-based to outcome-based performance tracking by developing clear metrics that measure productivity, quality of work, and team contributions regardless of physical location. Focus on results rather than hours worked.

“To effectively monitor and measure the productivity of remote employees, managers should adopt a comprehensive approach,” Li said. “They should clarify the task objectives for each stage and ensure that these objectives are specific and quantifiable. Project management tools like Trello and Asana can be used to track progress in real time.”

6. Design training and support programs.

Provide resources to help employees adapt to remote work technologies, maintain work-life balance, stay connected with team members, and manage the unique challenges of working outside a traditional office environment.

7. Implement cybersecurity measures.

Protect company data by using VPN connections, implementing multifactor authentication, establishing device usage policies, and providing comprehensive cybersecurity training to all employees who work remotely.

8. Maintain company culture.

Develop intentional strategies to host virtual team-building activities, encourage informal interactions, and preserve company values across different work environments. Company culture doesn’t have to be dependent on location. When remote workers feel integrated into company culture, they’ll be more likely to stay disciplined and motivated.

“Remote employees are more likely to struggle with feelings of isolation and disconnect from their company, which makes managers partly responsible for their sense of connection to the team,” said Dovilė Gelčinskaitė, senior talent manager at Omnisend. “It can be fostered through regular check-ins, virtual and, where possible, in-person team-building activities.” 

9. Regularly review and adapt.

Schedule periodic assessments of your remote work program. Solicit employee feedback, track performance metrics, and demonstrate a willingness to make continuous improvements that support both your business goals and employee needs.

Things to consider when launching a remote work policy

There are a few additional considerations to keep in mind when launching your remote or hybrid work policy. We recommend taking the following into account:

  • Whether employees must continue to live near the office
  • How often to hold mandatory in-person meetings
  • Whether the company should pay for costs related to travel to the office
  • Which positions qualify for remote work
  • What criteria should be used to ensure work performance and cultural fit in the organization
TipBottom line
Always consult with legal, HR and financial teams before deciding on a remote work policy. These departments can help you identify the pros and cons, compliance requirements, and tax implications so you don't waste time and resources if remote work isn't appropriate for your business.

Cybersecurity and HIPAA

When working with remote employees, you must invest in cybersecurity that protects your workers’ and customers’ information. If your industry has HIPAA requirements, you might need additional security measures like a virtual private network (VPN) and HIPAA-compliant customer relationship management (CRM) software.

Consistent communication

A remote work policy should include an expectation of company communication. You should still schedule time for meetings. Whether it’s once a day or once a week, a one-on-one meeting with a manager, or a secure chat for questions and issues – is essential for maintaining good communication.

Schedule meetings and chats during regular business hours so employees can be available for them. 

FYIDid you know
It may be advantageous to schedule meetings during a remote worker’s least productive time of the day or week. Use employee tracking software to gather work data so you can maximize productivity by giving the employee a boost in morale when they need it most.

Be sure to schedule in-person meetings and events too. Even though remote workers prefer working in their own space, it’s vital for teams to meet face-to-face to work collaboratively and deepen relationships.

Plus, regular check-ins are necessary for challenging your team. Define goals and stay on top of deadlines by managing employees using the best project management software available.

Recognize that not every worker is fit for remote work. While some employees are more productive at home, others do their best work at the office. A remote work policy should outline performance thresholds (and consequences if not met) for keeping a flexible work schedule. 

Outline hours and benefits

Hiring remote hourly workers can be a challenge if you don’t have a preferred schedule in place. Telling workers what time they need to be online can help prevent them from overworking and charging overtime pay for their efforts. While salaried workers may have more flexibility, it’s important that the tasks given fit into a standard 40-hour workweek so employees can maintain their work-life balance.

A remote worker’s pay and benefits should be clearly outlined in the policy to prevent confusion. Each company offers different perks, which can influence whether an employee wants to work in the office or at home. 

Check out the benefits and perks that keep remote employees happy.

Tejas Vemparala and Ken Gosnell contributed to this article.

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Written by: Julie Thompson, Senior Writer
With nearly two decades of experience under her belt, Julie Thompson is a seasoned B2B professional dedicated to enhancing business performance through strategic sales, marketing and operational initiatives. Her extensive portfolio boasts achievements in crafting brand standards, devising innovative marketing strategies, driving successful email campaigns and orchestrating impactful media outreach. At business.com, Thompson covers branding, marketing, e-commerce and more. Thompson's expertise extends to Salesforce administration, database management and lead generation, reflecting her versatile skill set and hands-on approach to business enhancement. Through easily digestible guides, she demystifies complex topics such as SaaS technology, finance trends, HR practices and effective marketing and branding strategies. Moreover, Thompson's commitment to fostering global entrepreneurship is evident through her contributions to Kiva, an organization dedicated to supporting small businesses in underserved communities worldwide.
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