U.S. companies can save up to $11,000 per each remote working employee


In the wake of the COVID-19 pandemic, U.S. companies shifted millions of employees to remote work positions.

According to a new study, this change could be cost-effective for both employers and workers.

The study, conducted by San Diego-based consultant group Global Workplace Analytics, found that businesses with employees who telecommute an average of 2.5 days per week could save nearly $11,000 per worker each year.

The savings were based on factors such as increased work productivity, reduced absenteeism, lower turnover and reduced office expenses.

In addition, the report found that employees who work part-time from home could save an average of $3,000 per year.

The savings come from reductions in transportation, food and clothing costs. Added remote working expenses, such as increased home energy costs, were included in the calculation.

The research was based on the consultant group’s database of business case studies and a remote work savings calculator on its website.

According to Kate Lister, president of Global Workplace Analytics, COVID-19 has shown employers the advantages of remote working schemes.

Prior to the pandemic, she said, only 7% of American businesses offered employees the opportunity to work from home, with the majority of companies fearing the arrangement would lead to reduced productivity.

However, the pandemic revealed that remote working actually leads to increased productivity and lower costs.

For instance, the study estimated that part-time remote employees work an extra 26 minutes each day when they remove their daily commute to the office.


It also estimated that employees encounter only 43 minutes of interruptions at home, compared to 78 minutes at the office.

The report estimated that each worker costs employers $99,000 in salary, benefits and taxes every year.

Assuming that part-time remote workers boost their productivity by 15% over 125 workdays annually, employers would save $7,430 per worker.

Employers would save another $1,935 per worker by cutting office space by 25%.

While working from home is cheaper and more productive than working in an office, Lister said that companies are unlikely to completely convert to remote work.

“Half time is best,” she said, citing the importance of maintaining engagement between employees and employers.