The virtual workplace is a boon for those who like to work in PJ’s but that’s not why corporations are allowing their employees to do it. Corporations care about positive cash flow and they are switching to the virtual workplace to get it.
It’s Not Pocket Change
American companies could see an estimated $200 billion in productivity gains, according to an April 2010 article published in Inc. Magazine, which quotes Kate Lister of the Telework Research Network, a research firm located in San Diego California. To achieve that gain, businesses would only need to allow those that can work from home, about 40 percent of the workforce, to do so half the time.
40 percent of workforce + home half the time = $200 billion estimated productivity gain
Tack on another $190 billion in cost reductions on real estate, electrical systems, absent employees and employee turnover and the total has already climbed to $390 billion dollars per year.
+ $190 billion in estimated cost reduction = approximately $390 billion saved
Employees Get A Raise
That’s right. Employees get a raise and the companies don’t pay an extra cent in wages or salary. How?
Those employees that are allowed to telecommute no longer spend an average of 100 hours per year driving to and from work. They also don’t have to put that gas in the tank. As far as most of us are concerned this is better than a raise, especially when thought of in terms of food on the table and time with the family.
Perhaps most importantly, 1,500 lives will be spared from fatal traffic accidents. That is an immeasurable gain for the obvious reasons, which doesn’t mention the productivity that is retained by unaffected morale.
The Environment Gets a Breather Too
276 million barrels of oil would go unused each year, which amounts to 32 percent of our imported oil from the middle east. There would also be a reduction of greenhouse gases by 50 tons thanks to saved emissions. To some, these figures may be aloof and unimportant, but as the world and culture continues to swing toward a more ecologically-minded future, these intangibles will continue to be major factors for every business to consider.
All together, the virtual workplace represents an estimated $700 billion in savings for the American business economy. Give the estimate a threshold of +/- $300 billion and the move is still a no-brainer.
Virtual offices save businesses money, boost productivity and subsequently increase profits. All three are things every business must do to thrive in any economy. Even Hollywood can’t script a better love-at-first-sight storyline.