Pros and cons of working from a home office

Pros and cons of working from a home office

Working from home has become a talking point for many employees, requiring business owners to decide whether remote working is the right model for their company. If you are trying to decide whether to let your employees work remotely, here are five pros and cons you should consider.

Pros of working from a home office
  1. Better work-life balance: Many people no longer appreciate spending long hours stuck in traffic commuting to work, not when they can just as easily do their job from home. The ability to work flexible hours that fit in around their family obligations or simply suit their lifestyle can lead to greater job satisfaction, simply because employees are happy operating within a more flexible working environment.
  2. Location freedom: With the option of remote work, employees no longer need to resign if for some reason they need to relocate to another part of the country or even overseas. Loss of skilled employees can be a big problem to small businesses who may find it difficult to replace essential staff, but if they can still work from their new location, everyone wins!
  3. Increased productivity: When an employee can work their own hours in a comfortable environment that suits their lifestyle needs, you often find that their productivity automatically increases. A lack of disruptions such as endless meetings at work can also allow remote employees to better focus on their work and achieve more in a given time frame.
  4. Attract more skilled employees: You might find that highly skilled employees are attracted to remote working arrangements and if your company doesn’t offer these type of working conditions, talented employees may go to your competitor.
  5. Improved retention rates: No longer do employees remain with one company for a lifetime, many move around frequently taking advantage of various opportunities. If your company provides the type of working conditions that suits your employees, they are likely to stay longer and improve your retention rates, which can reduce your costs significantly.
Cons of working from a home office
  1. Less collaboration: This is one of the biggest issues posed by antagonists of remote working arrangements, because employees can’t simply bounce ideas of one another and collaborate on the fly. 
  2. Greater security risks: Whether it’s client data or proprietary information, data loss or hacking can be a potential problem when employees work from home.
  3. Inadequate resources: If employees need specialist equipment to fulfil their roles, it might not be a financially viable option for your employees.
  4. Less accountability: Whilst productivity can increase when employees work from home, they are also less accountable for their time. This could lead to employees taking advantage of working remotely and claiming more hours than they actually worked.
  5. Lack of community: Some people simply work better when they are motivated by other employees, enjoying the feeling of community fostered by a company. Working from home can feel isolating, which can lower productivity and negate the benefits that remote working should promote.

One other consideration for companies that are considering remote working arrangements for their employees is insurance, because the right type of insurance policies can significantly reduce your risk exposure when employees work from home. 

To find out whether you have the right insurance policies in place to protect yourself and your employees while working at home, talk to an insurance specialist today.

General Advice Warning
The information provided is to be regarded as general advice. Whilst we may have collected risk information, your personal objectives, needs or financial situations were not taken into account when preparing this information. We recommend that you consider the suitability of this general advice, in respect of your objectives, financial situation and needs before acting on it. You should obtain and consider the relevant product disclosure statement before making any decision to purchase this financial product.

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