Economic benefits of remote work from the employer perspective
2021
Licite-Kurbe, L., Latvia Univ. of Life Sciences and Technologies, Jelgava (Latvia) | Leonovica, R., Latvia Univ. of Life Sciences and Technologies, Jelgava (Latvia)
In recent years, remote work, driven by mobile technology, the availability of the Internet and the spread of COVID-19 limiting work to be done at the workplace, has become increasingly popular. Although it is very easy nowadays to do many kinds of work remotely, many companies still do not want to introduce such practices on a permanent basis. Therefore, the research aims to examine the experience of companies in remote work to identify the economic benefits of remote work as well as develop scenarios for remote work. The research methodology is based on case study analysis, comparative analysis, economic analysis and the scenario method. The results of the research revealed that potential financial savings from applying remote work practices in companies varied, depending on the specifics of the industry and jobs, as well as the funds that the company was initially willing to invest in its employees. For companies, the largest economic savings from applying remote work practices came from maintenance of premises, as well as electricity and Internet bills, while the provision of equipment to their employees accounted for the smallest proportion of preliminary cost savings. However, the main disadvantages of remote work were the difficulty of controlling employees, communicating effectively with each other and ensuring successful teamwork. Companies could introduce part-time work practices if a large proportion of the tasks could be performed remotely, yet only the companies with a high level of automation of tasks might fully switch to remote work.
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