Three Ways Employers Benefit From The Great Working Realignment

Originally published to Forbes

Ryan is Co-Founder and Principal of Graceada Partners, leading investment activity and heading up the asset management division of the firm.

A year ago, if I had told you millions and millions of people would be working from home indefinitely, you would have probably dismissed me as someone desperately trying to sell in-home office renovations.

But I’m not a residential contractor. In fact, I’m kind of the opposite. As a commercial real estate investor, I deal in a space that includes office complexes. Our company has witnessed some of the short-term shifts forced upon employers because of the pandemic.

Working environments are evolving as the pandemic changes the dynamics of employers and employees. On average, the latter has experienced a happiness and productivity boost from remote working. Of those who retained their jobs, many prefer working from home or a mixed-work schedule. In some ways, employers have also had an easier time with an altered state of work. Here are the three ways employers have been positively affected, either directly or indirectly, by employees working from home.

Less pressure on employees could translate into more efficient work.

In a two-year study in Shanghai, researchers found that employees who worked from home were not only more productive than their in-office counterparts, but they took shorter breaks and fewer sick days, going against the narrative that employees working from home would be lazier and less motivated. Another study of over 1,000 workers found that remote employees work 1.4 more days each month than those in the office, which adds up to over three more weeks of work per year.

This frees up bosses and managers from many of the time-consuming in-office tasks to brainstorm new company approaches, and employees are more in their comfort zone since they’re literally in the comfort of their own homes. Not having to stress about the daily commute or being able to cook a meal from your own kitchen midday are positive aspects that can positively influence employees.

Employers may see reduced overhead with less need for office space.

In that same Shanghai study, each employee that stayed home to work saved the company nearly $2,000 each in overhead costs. Workers not paying for public transit or gas money for a daily commute may be another cost saver for the employer down the road (no pun intended). With an employee not paying for, let’s say, 30 miles of gas each day, along with all the other costs of wear and tear, in a year, they could save up to $1,000. For an employee earning $50,000, this could feel like a 2% raise — without the company making any changes to payroll. Employees who commute a good distance will also feel like they gained back an hour of their life from not commuting in the first place.

Flexibility may translate into stronger work-life balance for everyone.

This benefit for employers may also encourage them to reevaluate their in-person office space, leading some companies to downsize to a smaller location. Relocating to a smaller office can give teams more work environment flexibility and save on the unnecessary cost of a large office where only a fraction of the team shows up. Additionally, this will allow smaller businesses that couldn’t afford such prime real estate to upgrade to these downtown locations and further follow their dreams.

If an employee is already happy with not commuting, then they might be more positive around their family. This could lead to spending more time with their spouse and kids, putting them in an even better mood and further motivating them to work hard the next day.

Work has changed, but many still value face-to-face interaction.

The genie is out of the bottle. Now that employees have had a chance to prove they can be productive working from home, I doubt that every company will go back to “business as usual” even after the pandemic. And while there are a great deal of benefits for employers and employees — particularly in the short term — as we deal with a pandemic, I still believe that the creative environment of working alongside peers in an office will continue, albeit in a potentially different model (i.e., a hybrid where employees have greater flexibility with hours or when they come in).