The Key Benefits of Remote Work for Employers

The fact is, remote work is rising in popularity across the world. It’s not a short-term trend; it’s here to stay, with numerous benefits of remote work for employers—including increased productivity, reduced overhead costs, access to a global talent pool, improved employee retention, and enhanced diversity and inclusion.

The number of people who work from home has increased by 140% since 2005. It’s estimated that, by 2028, 73% of all departments will have a remote workforce.

When it comes to fully remote companies, you only need to skim the top 100 remote businesses to recognize some of the top tech and SaaS brands. Companies like Invision, Basecamp, Baremetrics, and Github thrive with remote teams.

A company might have a flexible work policy even if it isn’t fully remote. In a recent survey on productivity, only 30% of companies had only a local in-office team.

Remote work has evolved from a temporary solution to a lasting business strategy, providing companies with many advantages that empower them to remain competitive, adaptable, and forward-thinking. In this article, we’ll explore the top benefits of remote work for employers and highlight why it has become a critical component for future-proofing businesses.

Benefits of remote working for companies

In an ever-evolving business landscape, remote work is emerging as the new typical — a shift that benefits business owners.

From financial savings to increased productivity and employee satisfaction, the advantages of remote work vastly outweigh the negatives. Let’s explore these benefits and uncover how they can propel your business to new heights.

1. Increased productivity and fewer distractions

Many studies have shown that remote workers often have higher productivity levels. The flexibility and comfort of working from home can lead to improved focus, fewer distractions, and positively impact employees’ mental health. 

Most people think remote employees working from home causes distractions, but I think it’s the opposite.

When I am at home, I have my own space. I can lock the door when I have meetings and go into deep focus mode when I need to. I can set up my environment for my success.

But, in an office, you can quickly be pulled in a million directions and easily find yourself chatting with those around you. Most days, there would be many people stopping by my desk, and in every one of those cases, it would be to work on their agenda rather than mine.

According to Hubstaff research, remote employees spend considerably more time on focused tasks, averaging 273 minutes (4.55 hours) of focused work per day compared to 223 minutes (3.72 hours) for their in-office counterparts. This adds up to 4.15 additional hours of focused work each week for remote workers—representing a 22% increase in time spent on deep, uninterrupted tasks. Furthermore, Hubstaff’s data reveals that remote team members experience 18% fewer interruptions annually, resulting in over 61 hours of recovered productive time each year.

2. Cost savings

With remote employees, businesses save on office space, utilities, office supplies, and commuting reimbursements. These savings are substantial, especially for businesses operating in high-cost locations. Many employees also save on expenses when they work remotely, from commuting costs to daily lunches.

No office means no rent. When we were starting Hubstaff, we were bootstrapped and didn’t have a ton of budget. I think that is a common case these days. It’s no longer a requirement to spend your starting capital on rent.

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Additionally, if you choose to hire talent from another area, you could save on labor costs. Professionals living in a city with a high cost of living need higher wages. Those living in smaller cities or outlying areas are just as talented but without the costly daily expenses.

3. Access to a global talent pool

When hiring remote workers, you’re no longer limited to local candidates—you can tap into expertise available worldwide, ensuring access to top talent no matter where they’re located; when someone requests to work from home, whether full-time or part-time, a manager’s first thought might be hesitation. But there’s no need to fear this shift.

In reality, people have different work preferences—some thrive working from home, while others prefer the office. This choice doesn’t reflect how well they’ll perform at their jobs. At Hubstaff, we’ve experienced tremendous growth since 2013 by embracing a global talent pool. Hubstaff recently ranked #842 on the Inc. 5000, with several fully remote companies outperforming us. This approach works.

One of Hubstaff’s greatest advantages is our freedom from geographic constraints. For example, if we need a marketing manager or designer, we’re not limited to candidates in Indianapolis. We can search across the U.S., Canada, or even globally.

This broad search brings hundreds of applications each quarter because we offer remote work, pay well, and encourage talent from anywhere. Many applicants are parents who want a meaningful career while still having time for family. Remote work allows them to balance both.

At Hubstaff, we also hire specialists. When seeking someone to lead our advertising efforts, we don’t settle for a generalist; we look for the most experienced candidate available. Remote hiring lets us find people with specialized expertise, even if they’ve moved from a major market, like New York, to a quieter place, like Idaho. Remote work connects us to top talent and helps them find fulfilling roles, no matter where they live.

4. Improved employee retention and satisfaction

Flexible work enhances job satisfaction, supports work-life balance, and reduces turnover, saving businesses time and money on recruitment and training.

For many, flexible work arrangements aren’t just about convenience—they’re about reclaiming time for what matters. I value time above all else and think most people feel the same way. Remote work lets me pick up my kids, go for a run, or start the day with family. It’s a lifestyle that aligns with my values, and I believe that’s true for others, too.

Employees who value flexibility don’t lack commitment or skills—they simply want to balance their lives. When work aligns with personal values, people are happier and more engaged. This alignment is a key reason Hubstaff has such high retention, as our team feels at peace with their work and lives.

Once people experience remote work, they rarely go back. In a 2019 survey, 99% of remote workers said they want to continue working remotely for the rest of their careers. With the COVID-19 shift, many companies will likely keep remote policies.

The benefits—higher retention, happiness, and flexibility—far outweigh the downsides for businesses. Remote work lets employees seamlessly balance personal and professional needs, like shifting hours for a child’s appointment. 56% of companies now cite flexibility as a major factor in retention.

Ultimately, nothing makes me prouder than seeing Hubstaff’s people live the lives they want. Remote work has been instrumental in achieving that balance.

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5. Scalability and flexibility

Hiring remote teams offers scalability, enabling companies to adjust workforce size as needed without the constraints of physical office space. This is particularly valuable for fast-growing startups or seasonal businesses that need to scale up quickly or manage fluctuations in demand.

6. Enhanced business continuity and resilience

With a workforce not reliant on a physical office, businesses can maintain operations despite disruptions like natural disasters, health crises, or regional events. Remote work reduces the risks associated with a centralized workforce, enhancing business continuity and resilience.

7. Diversity and inclusion

Remote work enables companies to create more inclusive workplaces by removing geographical and accessibility barriers. This allows employers to hire individuals from varied backgrounds and regions, fostering a diverse workforce and contributing to innovation and growth. By offering flexibility, remote work supports underrepresented groups, such as caregivers or individuals with disabilities.

8. Environmental and sustainability benefits

By eliminating daily commutes, companies that adopt remote work reduce their contribution to air pollution, aligning with sustainability goals. 70% of employees (or prospective employees) appreciate when their work helps lessen environmental impact.

Remote work, done right, also offers a better work-life balance. Beyond saving money and cutting down on meetings, remote arrangements allow people to work in spaces they love and on schedules that suit them. Flexible work can increase job satisfaction, leading to higher productivity, reduced absenteeism, and even revenue gains—a valuable tradeoff for offering flexibility or accommodating new time zones.

Environmental impact is another significant benefit of remote work. Daily commutes produce substantial CO₂ emissions—around 20 pounds per gallon of gas, totaling 5.5 tons per vehicle annually. A company of 56 employees could emit 308 tons of CO₂ yearly from commuting. Working from home, however, cuts these emissions significantly, with each remote worker reducing their carbon footprint by over 2.2 tons annually.

Regarding work-life balance and environmental impact, remote work presents meaningful advantages for businesses and their teams.

9. Better use of technology and collaboration tools

Ten years ago, remote work was much harder than it is today. It wasn’t impossible, but meetings required phone lines and a significant amount of email.

Today, we have Zoom and Google Drive. Need to ask someone a quick question? Send them a note over Slack. And, now that high-speed internet is available in more homes, it’s easier than ever to stay connected.

Plus, with options like PayPal and Transferwise, you can now pay your team from anywhere for the best possible exchange rate.

As the years go on, this will only get easier. With the rise of streaming and online viewership, more and more tech is being developed, making it easier to stay connected to people globally.

Tools like Hubstaff help remote teams of all sizes track time, pay employees, see real-time productivity metrics, and more.

Interested in making the switch to remote work? Check out more of our thought leadership pieces on managing remote and hybrid teams:

• The Complete Guide to Motivating Remote Employees in 2023
• The Business Case for Remote Work: Send This to Your CEO

Go forth and work remotely

The benefits of remote work for employers speak for themselves: increased productivity, cost savings, access to a global talent pool, and the chance to foster happier, more engaged teams. Embracing remote work isn’t just about business growth—it’s also about creating a work environment that values flexibility, reduces stress, and supports a better work-life balance.

As with any significant shift, success lies in planning, clear communication, and implementing security measures. A remote work structure works best when businesses adapt, innovate, and fully harness the potential of this way of working. Why not give it a try? The advantages outweigh the downsides, and remote work could be the key to a more resilient, forward-thinking company.

And if you’re open to it, try working remotely alongside your team. You may enjoy the flexibility, the time saved on commuting, and the extra peace of mind. Ready to dive in? 

Check out our free ebook packed with over 100 pages of best practices for managing remote teams.