Working from Home

I heard an interesting statistic on the radio this morning-most Americans would be willing to take a 5 percent pay cut in order to work from home. This is something that may intrigue entrepreneurs; not only could they save money on staff wages, but costs on renting an office space could be lowered. Although it may seem like there is no argument as to why businesses would want to be stationed at a rented office, many entrepreneurs still see the need for a professional and reputable office address to maintain the respect that business partners and customers have for the company. However, with virtual offices becoming ever more prevalent, which you can learn more about at, it seems that working from home may grow even more over the next few years. I’ve been working from my home for 25 years now and must admit that I really wouldn’t want to work anywhere else. However, I started thinking about the whole concept of a pay cut after the radio announcer finished and thought that we’re looking at the issue from the wrong perspective. Sure, the 5 percent pay cut is real, but is it actually a pay cut? Let’s examine that for a moment. The 5 percent pay cut to work at home would result in the following savings:

  • Reduced driving needs, which means lower insurance
  • Less gas used
  • Less wear and tear on the car
  • Lower cost, more nutritional eat-at-home lunches
  • Less need for expensive clothing
  • No day care required
  • Less time wasted in travel (and time is money)

If you don’t already have a home office then you will need to make one. These means buying furniture such as a desk, office chair, drawers etc. and getting some tech like a laptop. Of course, this costs money. However, you can get some good office furniture at good prices from places like Office Monster and it’s a one-off cost and long term investment. I still think in the long run you would save money because from a financial perspective, both the employer and employee come out ahead. In short, the benefits of working at home only start here. This is just the tip of the iceberg. If you’re an employer, you want your employees working at home. According to Business News Daily and many other sources, employees who work at home are significantly more productive in the right circumstances. So the employer not only saves on the pay required for a work at home employee, but also gets more for the employee’s efforts (assuming that the employee is actually working and not getting distracted). Even if you are unsure whether your staff are being productive, you don’t need to bring them back into the office because there are ways of keeping track of it whilst they are working from home. A lot of companies use a survey for remote work for this. In addition, there are other financial benefits for the employer such as reduced absenteeism and reduced infrastructure requirements, such as desks and office space. Because working from home is becoming more of a reality for many Americans, a number of authors have taken a stab at making it work out better for everyone involved:

The one essential tidbit of information that you should glean from most of these posts is that you need some sort of schedule. In fact, a few of these sources actually draw you a picture of a schedule. Having goals that you want to meet each day is an essential part of the work at home experience.

There is no doubt that the effects of working at home extend well beyond the benefits that both employer and employee can obtain. Working at home can be better for the environment because the worker isn’t driving anywhere. However, whether the environment gains or not is really a matter of the environment in which the employee is working. A basement office using incandescent bulbs, a plug in heater, and old computer equipment is hardly energy efficient and could actually end up increasing the employee’s carbon footprint.

Although, there’s no doubt that the employer will have to upgrade the payroll system, as with employees working from home, the hours may vary. Recording these hours and calculating pay can take up a lot of time and energy for the employer, and can result in a lot of dissatisfied employees if done wrong. Luckily, the benefits of outsourcing payroll far outweigh doing payroll manually, and should definitely be considered if working from home is a reality for your business.

The health benefits of working from home are also well documented. Employees who work from home are less stressed, eat better, and spend more time doing something other than driving a car. The mental and physical benefits of working in a familiar, cozy environment make it possible for employees to live better lives. In addition, even when an employee does get sick, it’s often possible for the employee to work part of the day, rather than miss an entire day at work, so the employer gains as well.

I’m not a parent, so I have no personal experience with child rearing. However, in researching work at home statistics, I did run across a few articles that suggest work at home parents actually give their children a better chance of performing well later in life. I’d be interested in hearing from people who have significant experiences one way or the other-especially in situations where one child was raised at home and another in childcare.

Will working from home work for everyone? The answer is absolutely not. Certain professions require that employees still trudge to work. In these cases, working as close to home as possible will still save travel time, wear and tear on your car, reduce insurance payments, and still benefit the environment to some degree. Working close enough to walk to work or use public transportation is even better. However, some people will continue to go to work at a factory or office somewhere, no matter how much technology progresses.

If your employer doesn’t
offer work at home, create proposal that makes it more likely that the
employer will at least consider allowing you to do it. Everyone
Do you think you could perform your work at home? Are you doing it now? Let me know your thoughts on the whole work at home question at