Cost benefits of hybrid working

A recent survey from the CIPD (Chartered Institute of Personnel and Development) shows further growth in the number of employers who report homeworking has increased their organisation’s productivity or efficiency.

In December 2020, the figure stood at 33%. By October/November 2021 this had increased to 41%.

The findings also reveal a fall in the number of employers saying the increase in home and hybrid working has had a negative impact on their organisation’s productivity. In 2020 it was 23%, compared to 18% in 2021.

The research, based on a survey of over 1,000 employers and 2,000 employees, clearly shows that embracing a more agile way of working is paying dividends.

And while employers are focusing on how this new way of working impacts their bottom line, employees are taking a long hard look at the cost benefits too.

Put simply, going to work costs money. From extortionate train tickets and fuel prices, to endless (but necessary) takeaway food and drinks and buying and dry cleaning smart office-friendly clothes. It all adds up. I recall myself, around 12 years ago, when I stopped commuting into London and set up my own business from home, I made an annual saving of around £10,000.

Given the current staff shortages and rising war for talent, some companies are addressing the issue by offering travel allowances and free breakfasts and lunches. Anything to attract new and retain and tempt current employees back into the office.

Fundamentally though, mindsets have shifted. Workers who once thought nothing of picking up the tab for going to work are now less likely to accept this financial burden. And in some cases, cannot. If hybrid working is not available to them they will leave. Either through choice or because the cost of working is no longer viable.

As Microsoft notes in its Work Trend Index: “Flexible work is here to stay…Talent is everywhere in a hybrid world.”

About Author

Claire Dee

Director and founder of business consultancy Claire Dee Communications.

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