The Real Costs of Remote Working

What’s the real cost of remote working for your small business?

Remote work has become increasingly popular in recent years, with many companies now offering employees the option to work from home or other locations. Increased flexibility, cost savings, reduced carbon footprint, and more, are among the benefits of remote work. However, it’s important to understand the real costs that come with this type of working arrangement - especially to you as a small business owner.

In this blog post, we’ll take a detailed look at the real costs of remote work, including both financial and non-financial.

Keeping your remote team working as a team

While a study from Buffer in 2023 shows that remote workers are happier, more productive and less likely to leave their jobs than those who work in a traditional office setting, one of the main downsides of remote work is the potential loss of office culture and team cohesion.

When employees work remotely, they may not have the same opportunities to interact with their colleagues and build relationships as they would in an office setting. This can lead to feelings of isolation and disconnection from the company and its mission. To mitigate this, companies can invest in technologies that facilitate virtual collaboration and communication, such as video conferencing and instant messaging.

Remote work can also have an impact on employee engagement and motivation. Without the face-to-face interactions that happen in an office setting, it can be harder for managers to gauge employee engagement and motivation levels. Try holding regular check-ins to keep track of employee engagement and address any concerns that may arise. You should also implement strategies to promote face-to-face interaction, such as in-person team-building activities.

Remote working and distractions from work

Another potential cost of remote work is the possibility of increased distractions. While some are adept at staying focused — keeping their productivity high — others can find this a challenge. When working from home, employees may become distracted by household tasks and personal responsibilities. Additionally, a lack of structure and routine can pose additional challenges to remote work. 

To combat this, be sure your employees have the resources and support they need to create a dedicated workspace and set boundaries between work and personal life. 

Increased technology and equipment costs

With employees working from different locations, you may need to invest in new hardware and software to ensure everyone has the necessary tools to do their jobs. You may also need to invest in cybersecurity measures to protect sensitive company data from being accessed by unauthorized parties. Technology and equipment for remote workers can be a significant cost factor when it comes to limited resources for a small business. 

Obviously, these cost can and will vary depending on the specific needs of your employees and the nature of your small business. It could also have a financial impact on your people if you’re asking them to pay for their own internet, phone, and other work-related expenses. If it’s affordable to do so, offer reimbursements or stipends to help offset these costs.

What about health benefits for those working remotely?

The best way for your small business to handle health benefits for remote workers is to offer them a comprehensive health plan. Depending on the size of your business, this may be achieved more affordably through a group health plan.

Remember, it’s important that remote workers are offered the same benefits as those in an office setting. You may not have an obligation to provide such benefits at all if you employ fewer than 50 workers, but it reflects well on your business if you do so — adding a group health plan can help attract and retain top talent.

Get a no-obligation group health benefits quote from us today

The Self-Funded Program through Allstate Benefits provides flexible health coverage and options for small business and their employees, no matter if they are in-office, hybrid, or fully remote. See how your employees could get health benefits no matter where they work from by getting a quote today.