Advantages & Disadvantages of Telecommuting for Businesses (2024)


“This is a telecommuting position.” Prepare to read this phrase a lot in the near and even distant future. If working from home was on the rise before the Covid-19 pandemic entered our lives, at the moment it’s a one-way street for many countries all over the world.

Telecommuting's advantages and disadvantages are a common subject of discussion. Some of them affect mostly employers, others have a bigger effect on employees’ lives, and some others will bring about change in other areas.

In all this, the big winners seem to be the businesses that have an affinity with technology since virtual collaboration and management have become the norm. Fintech companies, project-oriented teams, and hi-tech corporations are likely to find their way out of the labyrinth much easier.

Let’s explore all the different telecommuting advantages and disadvantages that the modern workforce and employers will have to take into consideration.

Advantages of telecommuting

Let’s start with the good news first. Work from home comes with benefits for both parties. So much so, that many companies are thinking about making it a permanent arrangement — with a big part of the workforce seconding this idea.

The rise in employee productivity

According to research by Gartner.com, 88% of businesses have supported employees that prefer to work from home during the Covid-19 outbreak. At the same time, the Asian and Pacific business market is as innovative as ever. It introduces a telecommuting policy to facilitate the employees’ work as much as possible.

Forbes published that an American company had witnessed the work performance of their employees increase by 47%. Numbers speak for themselves: telecommuting takes off the table long hours in traffic, procrastinating talks with colleagues on projects, and sources of office distractions. At home, employees can manage their workload better and devote more time to actually work. An increase in productivity is beneficial for employees as well as employers. The work is done more efficiently, so everyone is happy.

Time-tracking, productivity, and project management tools are and will continue to be an integral part in order for telecommuting to work. With their help, managers and employers will have an overview of time, teamwork, and project costs. This way, they will have the right means to stay financially stable and strengthen their virtual teams.

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Better employee retention

A major issue in the pre-COVID era was employee turnover. Especially for people who always wanted to work from home, leaving a position to chase remote work opportunities was commonplace. Under the current circ*mstances, employees that would otherwise quit, find the right balance between work and personal life through the telecommuting policy.

According to Gartner.com, employers believe that 75% of their workforce will ask to work remotely by 35%. WFH helps employees be more relaxed, less stressed, and more content with their jobs. As for employers, they are saved from the trouble of hiring and training new employees.

Environmental benefits

This point does not affect employers or employees directly, but the environment we live in. No commuting means lower fuel emissions, which is a tremendous relief for our climate. If companies establish a telecommuting policy for the years to come, the benefits will multiply.

According to the Global Workforce Analytics estimations, greenhouse emissions can be decreased by 54 million tons for every year that employees work from home only half of the workdays. Telecommuting also requires no office spaces, which means fewer energy utilities and supplies.

Reduction of operational costs

For an employer, saving the environment is a great cause, but cutting down on business costs is godsent. Companies can save a lot of money on rent, utilities, renovations, meals, office supplies, and other variable and overhead costs. According to flexjobs.com, 77% of employers think that the telecommuting policy can lead to a substantial decrease in operational costs.

Disadvantages of telecommuting

In reality, most of the disadvantages of remote working are not unsolvable. They are just remnants of a more traditional approach to working. New technologies can help streamline work processes, protect remote workers from cyber threats, and increase transparency. The only thing technology cannot replicate or replace is human interaction, which is the true disadvantage of the telecommuting policy.

Lack of direct team supervision

The first disadvantage of telecommuting is that employers, managers, and team leaders cannot actually see what other employees are doing. This means that businesses need to use project management software to delegate and monitor tasks efficiently to ensure transparency and visibility and ensure that every employee delivers their tasks in a timely fashion.

Reduction in productivity

Also listed as a benefit, employee productivity can go either way during telecommuting. Some employees simply cannot work well from home, especially first-timers. The most common reasons are distractions caused by members of the family, inability to view the home as a working space, and lack of motivation.

A drop in employee productivity can be solved if managers and employers establish productivity goals. This will help employees get motivated and reminded that, although they work from home, they should keep up the same pace.

Moreover, businesses should use digital communication tools to continue working “traditions” like brainstorming, project meetings, one-on-one discussions, and growth sessions. All these digitally-enabled processes will make sure that innovation and purpose are not out of the picture.

Cybersecurity issues

Cybersecurity is a crucial parameter of smooth business operations. Companies build IT teams to protect their and their client's data from prying eyes. Password, network, browser, and email security should always be taken care of by businesses.

When working from home, the game changes. Employees should have a secure Wi-Fi network, use a VPN, and use encrypted communication. Generally, they should be careful about how they deal with data and devices. For this reason, offer brief training on cybersecurity to educate employees on common threats to watch out for and best practices to follow.

A great example is the latest Covid-19 phishing campaign. Hackers lured people with financial compensation and guided them to scam Office sign-in pages. Thankfully, the 19 campaign domains are under control by Microsoft, to protect people worldwide from those hackers.

Loss of work/life balance

Our last telecommuting disadvantage concerns mostly employees. Working from home might sound like heaven, but some people find it hard to separate personal and professional life. The telecommuting policy does not make things any easier, since no one will stop you from working all day long.

Lunch breaks short walks around the office, and little snacks are necessary intermissions to rest your mind. So, if you are living alone and working even harder than before the COVID-19 pandemic, rethink your priorities and start taking care of yourself. Eat healthily, drink water, walk, and take breaks. Turn off your laptop and don’t check your email after the end of the business. Burnout is not for in-office employees. It can also plague employees at home too if they keep working long hours.

In conclusion

Telecommuting's advantages and disadvantages are not the same for every member of the team. Employers should tend to employees’ problems, choose the best collaboration and management tools, and educate themselves on effective working practices. Then, managing projects and teamwork productivity will seem like a child’s play.

Advantages & Disadvantages of Telecommuting for Businesses (2024)

FAQs

Is telecommuting good or bad for business? ›

Pros of Telecommuting

It improves employee satisfaction, with 91 percent of employees citing that telecommuting is important to their job satisfaction, and better work/life balance. This in turn helps improve business efficiency and productivity. It can help save companies and employees money.

What are the disadvantages of teleworking between employer and employee? ›

Disadvantages of teleworking
  • The feeling of loneliness and exclusion end up weighing on all those who consider human contact to be fundamental.
  • Loss of relationships and work environment. ...
  • Decrease in productivity. ...
  • Difficulties to work in a team. ...
  • Less learning.

What is the advantage of teleworking for organizations? ›

Teleworking for Employers

Increased employee productivity. Increased employee satisfaction. Improved employee recruitment and retention. A reduction in overall absenteeism.

What are 7 benefits of telecommuting? ›

Advantages to Remote Working
  • A Better Work-Life Balance. Many remote jobs come with flexible hours, which means employees can start and end their day as they choose. ...
  • Less Stress on Commuting. ...
  • Location Independence. ...
  • Saving Money. ...
  • Influence on Sustainability. ...
  • Increased Performance and Productivity. ...
  • A Healthier Workforce.

Why do companies use telecommuting? ›

A significant benefit of telecommuting for companies is a happy and loyal workforce. Firms hiring remote workers have reduced operating costs, increased profits and higher attractiveness to talented and skilled personnel.

Why are businesses against remote work? ›

Employee engagement and well-being are critical factors for company success. While remote work offers flexibility, it can also lead to feelings of isolation and a lack of work-life balance. A survey by SHRM revealed that 69% of HR professionals were concerned about the well-being of remote employees.

What is a complication of telecommuting? ›

Risk Factors

Telecommuters face many of the same kinds of hazards as on-site workers and their employers, such as: Work-related injuries and illnesses. Ergonomics. Fire prevention.

How is telecommuting affecting the costs in a business? ›

Lower Overhead. The most obvious cost saving that results from telecommuting is reduced overhead. Companies that don't have to pay for employees' office space and supplies can save quite a bit in a year.

Why are employers against telework? ›

A few factors are likely at play: The reason most often cited is that some employers have blind faith that physical proximity increases output. They insist that our best work is done in person. The hard truth is that we do not know to what extent being in person improves our productivity.

What are the negative effects of teleworking? ›

Lack of social interaction

One of the major disadvantages of teleworking is the lack of face-to-face interaction with colleagues. This can reduce the opportunities for collaboration, learning and professional development, and is also a new challenge for managers.

What companies are against teleworking? ›

So why are some companies walking away from telework? In recent years, Best Buy, Yahoo, IBM, Honeywell and Bank of America have abandoned their telework initiatives. Each said they wanted to improve communication, collaboration and teamwork by bringing employees back into the office.

What are some pros and cons of telecommuting? ›

What are the advantages and disadvantages of teleworking?
  • It facilitates family reconciliation: ...
  • Environmental ally: ...
  • Saving time and money: ...
  • Feeling of isolation: ...
  • Difficulty in disconnecting from work:
May 10, 2022

Which is a potential drawback of telecommuting? ›

The employee has less personal contact with managers and coworkers, hindering communication. It can be more difficult for managers to supervise someone working from home. The worker may have more disruptions at home, resulting in reduced productivity.

How do businesses benefit from remote work? ›

Remote work helps companies to retain staff for a number of reasons. Many employees appreciate the flexibility and enjoy being able to work away from the office environment. It potentially allows stay-at-home parents to continue working when they may otherwise be forced to stop.

What are the advantages and disadvantages of working remotely from home? ›

Remote Work Pros And Cons
Remote Work ProsRemote Work Cons
1. Better work-life balance1. No face-to-face connection
2. More freedom2. Lack of access to information
3. Improved employee experience3. Decreased collaboration
4. Decreased infrastructure costs4. Loneliness and isolation
2 more rows
Nov 16, 2023

What is one disadvantage of telecommuting quizlet? ›

One disadvantage of telecommuting is feeling socially isolated.

What is a potential disadvantage of telecommuting quizlet? ›

What is a potential disadvantage of telecommuting? Job satisfaction may decrease based on the number of hours spent telecommuting.

What are the pros and cons of WFH policy? ›

Pros And Cons Of Working From Home
Working From Home ProsWorking From Home Cons
1. More work flexibility1. Costly equipment
2. Improved focus2. Risk of lower productivity
3. Better attendance and punctuality3. Plenty of distractions
4. Social isolation4. Provide technology support to remote employees
2 more rows
Jun 3, 2024

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