Remote Vs. Office-Based Work – What is More Cost-Effective

Many businesses started experimenting with remote work before the Covid-19 outbreak, but this model became a life and business-saving solution during lockdowns. Once the leaders and employees adjusted to changed working conditions, they enjoyed numerous remote work benefits. Increased work flexibility, work/life balance, and productivity thrilled employees so that 54%of them stated that they’d like to continue working remotely after the pandemic ends.

Now that everything is back to normal, and the Covid-related restrictions are lifted, many business leaders face the difficult decision of whether to allow their employees to work remotely or to mandate a return to the office. 

And while the remote work benefits are evident regarding workers, what about business owners?

Many factors may affect your decision when choosing between remote and office-based work and cost-effectiveness is probably at the top of your list.

Here you’ll find out what the costs of office-based and remote work are. You can compare the expenses with benefits and make a well-informed decision.

Office Expenses

How much office work may cost you depends on numerous factors like size, location, and number of employees. Let’s say that you’re running a company of 50-100 employees based in New York and see what expenses you can expect if you opt for full-time office work.

Real-estate expenses are undoubtedly the largest, and knowing that renting prices are on the rise, this expense can seriously affect your budget. Additionally, when working from the office you need to consider the cost of housekeeping, maintenance, and furnishing as well.

New York rental costs are divided into three classes, A, B, and C and the most expensive office space rents are in Manhattan ranging from $ 93.6 per square foot for class A office space to $51.9 per square foot for a class C office. 

If you opt for a less expensive option and go to Brooklin, you can expect to rent an A-class office space for $56.1 per square foot, decreasing to $40.1 per square foot respectively.

Utility and Cleaning Services Expenses

Electricity is by far the most significant expense you need to consider when working from the office and US businesses spend about $2.1 per square foot on electric energy.

Internet for business expenses depends on your needs and the type of company you run. If you’re running a small business in the US, your monthly Internet bill can range from  $35 to $500.

Cleaning services have become a considerable expense during the Covid pandemic emphasizing the need for thorough disinfection of all office spaces and surfaces. Things haven’t changed in the post-Covid era, and if you want your employees to work from the office and feel safe and protected, expect to pay from $0.07 to $0.15 for disinfection services in New York.

After discussing the most prominent expenses of office work, let’s focus on the costs you can expect when running a fully remote company.

The Allowance for Remote Workers

This remote work allowance has become almost a common practice during the pandemic. Now that remote work has become one of the top employee demands, you should consider offering some compensation to your employees before they decide to leave you for a company that offers a similar perk.

You can determine how high this allowance will be based on your business requirements or you can follow the example of the business giants, like Twitter, Facebook, and Google that provide their permanent and full-time remote employees $1,000 monthly.

Productivity and Remote Work Tools

Creating an effective and productive remote work environment is a demanding process that requires significant investment to ensure seamless cross-team communication and collaboration. One of the major challenges is to make sure that your remote workers are productive when working from out of the office by involving remote employee management tools to track employee time and activities during work hours. 

But first, you need to invest in video conferencing platforms and communication and project management tools to ensure seamless collaboration and communication between remote teams 

similar to the office-based, in-person collaboration.

What Work Model Is More Effective in the End?

After all mentioned factors, the remote work model is more cost-effective than traditional work from the office. Even though you need to invest in advanced technology to create productive and tight-knit teams, the expenses of office-based work will always be higher. 

But in-person communication and collaboration that office work offers is a tall order for many business owners to recreate in the remote work environment. For this reason, you need to foster a people-focused company culture, boost productivity, and improve time management by analyzing insightful monitoring data.



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