Working from home came to be accepted as a part of the working culture in contemporary organizations; it has made it possible to provide certain advantages and some difficulties. A struggling component of the evaluation of remote work implementation is the balance between costs and benefits, which provide an assessment of potential savings and costs.

Cost Savings

Of all the costs that can be cut when employees work remotely, the first one is the office space and utility costs. This can result in a huge reduction of the cost of rent, utilities, maintenance and all the physical infrastructure that is associated with the physical office space. Also, remote work means no transportation costs claimed by the employees, from parking or other means of transport to work. The companies also save on expenses on facilities management such as; stationery, furniture and cleaning services among others.

Additional Expenses

Incorporation of work from home policy has benefits of cost cutting, but also brings expenditures as well. It is essential for management to provide appropriate equipment and, in particular, for remote workers to receive computers, high-quality connections to the Internet, and licenses for software for communication and work. Remote-working expenses may also be oriented to technical help since employees could encounter technical problems. Also, there was information that some organizations offered compensation for some office equipment and furniture for work from home arrangements. There could also be costs in relation to the contributions towards the utilities such as the internet and electricity.

Productivity and Performance

As stated earlier, remote work can have the potential of increasing productivity because one is not distracted by some work-related activities in the workplace. It can lead to an improvement of the general performance and potential additional revenues. It may also eliminate cases of absenteeism since an employee can work remotely even with some issues. But the effectiveness of remote work means that monitoring and performance management may demand investment, which has a cost implication.

Employee Engagement and Retention

Telecommuting has an upside in that it increases employee job satisfaction, as well as employee retention. This can help to decrease the turnover and recruitment costs, but can involve spending on how to engage the employees and provide them with material for team building in conditions of their remoteness. Providing opportunities to work remotely can also expand the range of candidates, including excellent and unique candidates who would like, or need, to have such an opportunity.