We analyzed 48,455 data points to discover new insights into how established businesses benefit from embracing remote work.
We analyzed 48,455 data points over 15 studies to discover ways that existing businesses can utilize remote and virtual services to increase profits and productivity.
Specifically, we sought to investigate ways that virtual services and remote work can benefit businesses that have yet to embrace these services and what can happen if they don’t.
References for this study are included below our findings, and the research process used to draw conclusions can be found in the attached Methods and Procedures PDF.
These stats are impressive, so let’s dive in.
Our key findings are as follows:
- Using outsourced reception services saves up to $163 million for established businesses, depending on size.
- Having employees work remotely saves $11,000 per employee per year.
- When working from home, a hybrid worker saves $19.11 per day over working from an office, totaling nearly $5,000 per year.
- 63% of coworking space owners plan to expand.
- The largest demographic that uses coworking spaces are small-to-medium-sized businesses at 37.93%
- Remote workers who got detailed instructions from their employers were five times more likely to be productive.
- In the last year, those choosing to work from home rose 24%, those choosing hybrid work rose 16%, and those choosing to work in-office dropped 24%.
Outsourced reception services save up to $163 million per year
Adding virtual office solutions to your existing business can result in huge profits – up to $163 million, depending on your business size.[1]
While you may already have your office and team set and are bringing in profits, there are virtual services that can add even more green to your profit line.
If your office space is limited or you work from a home office, having a full-service center offers clients a sense of prosperity – having lobby staff direct clients to fully stocked meeting rooms and office locations is sure to be more impressive than meeting them at a tiny office or your home.
Be upfront with potential buyers. Many businesses fear that using a virtual office will seem unprofessional, but explaining to them that while you have a home base, virtual solutions allow you to quickly explore new markets, expand in new locations, and saves money.[1] You can’t hire an on-call receptionist for less than $100 per month.[2]
A live, virtual receptionist can help save money and retain clients, even if used sparingly. Studies show that 90% of people prefer talking to a real person over an answering service and will often hang up when confronted with one.[3]
So, what happens when your receptionist is busy with other customers, on a lunch break, or takes a vacation? What if there’s a disaster in your area, like a flood or earthquake, and your local team can’t be in the office? Customers diverted to voicemail or an automated service are less likely to use your services, so having a backup plan is a great way to avoid lost business. “Often, it’s when things go wrong that outstanding customer service shines through.”[1]
Hiring remote workers saves $11,000 per employee per year
These savings come from several places. The most obvious source of cost-cutting comes from lower costs for office space. What may be less obvious is the savings that come from reduced absenteeism and turnover rates. Remote employees are also more productive than in-person workers.[4]
Further savings can be found if you previously offered extra benefits to your in-person employees, such as parking passes, public transit vouchers, or gas cards. Additionally, they’ll be using their own office equipment, supplies, and computers, equaling even more savings.[5]
Using virtual office services and rented office space can also save you money by essentially replacing your administrative staff. You’ll have a business address, phone number, receptionist, mail forwarding, phone answering, and meeting rooms around the country. As you scale your business, these are essential services, and using these low-cost alternatives rather than hiring full-time staff will reduce costs as you grow.[5]
Hybrid workers save $19.11 per day over working from an office
It’s not just employers who save money by working remotely – hybrid workers save $19.11 every day they choose to work from home rather than in an office. These savings are attributed to lower costs for food, fuel, car insurance and maintenance, and parking. This may contribute to the statistic that 75% of employees would take a pay cut of 5-10% to have more flexibility in where they work.[6]
Remote workers are also happier, have less stress, and a better work-life balance, and 43% work more hours than their office counterparts.[6]
One study shows that productivity rose by 22% when office workers were allowed to work from home.[7] Another showed 94% of employers saw productivity as the same or better when employees work remotely.[8]
If you want your existing business to grow, you should be offering remote work options. 77% of employees stated that working remotely was the second highest benefit that was important to them.[9] If you have remote workers and are considering a return to the office, you should know that 66% would start to look for a new job right away, and 39% would quit on the spot.[6] According to the authors of that study:
Something to think about: 41% of small companies (10-50 employees) are requiring employees to return to the office compared to 27% of enterprises (10k+ employees) … It’s clear this remote work trend is increasing by the day and could be a key to employee retention.
63% of coworking space owners plan to expand
If you’re in real estate, buying a coworking space or converting your existing office buildings into coworking or rentable office spaces is a sound investment. 63% of current coworking space owners plan to expand in the next year, a clear sign that this trend is growing and profitable.[10]
Over 1 million people in the U.S. currently use coworking spaces. By 2024, that number is expected to explode up to 5 million.[11] The cities with the highest concentration of coworking spaces are New York, Los Angeles, and Washington, D.C.[12] Don’t get left behind and miss out on this exceptional opportunity.
Small-to-medium-sized businesses use coworking spaces most
37.93% of users of coworking spaces are small-to-medium-sized enterprises, beating out startups (27.12%) and freelancers (16.61%).[13]
If you’re in the market to own coworking spaces, it would be a good idea to invest in marketing to these demographics. If you yourself are a small-to-medium-sized business, it makes sense that you’d want to check out coworking spaces to keep up with your competition. As we’ve outlined above, it saves money and keeps your employees happy, healthy, and with you as an employer.
Detailed employer instructions to remote workers leads to five times more productivity
Despite the facts detailed above, many small to medium-sized businesses are still considering return-to-office mandates or are hesitant to implement remote work options for their employees. We understand.
Implementing changes to how things have always been done can be scary. But being slow to embrace changes rapidly becoming the new normal can leave you behind your competitors and with a less competent and motivated team.
It can also be challenging to let go of the control you have when you’re able to oversee your team in person. Security concerns are also forefront of many minds – cyber security safety should always be at the front of any business owner’s mind. However, modern technologies exist to help ensure your employees are working safely and effectively.
Remote desktops essentially turn your employees’ computers into a computer that operates as if it were a secure computer in your office building. This helps to shore up security concerns.
There are also desktop trackers that will monitor keystrokes and mouse activity to ensure employees keep focused on their work. Some will also take screenshots randomly every few minutes to ensure that employees are actually making progress on their work, rather than just putting a stapler on the space bar.
These are great tools for keeping your business running efficiently, but a warning here is also due. Being heavy-handed when monitoring your employees can lead them to feel micromanaged and stressed, and the privacy of their home has been invaded. 56% of employees feel anxious that their employers are surveilling their communications, and 41% worry they are being constantly watched.[14]
One good way to cut back on constant monitoring and create a more unified team is to make sure you’re communicating clearly, effectively, and at appropriate intervals. Employees who received detailed communications from their employers were five times more productive than those left in the dark. If you have managers for your teams, be sure to communicate with them and be sure they’re effectively relaying your message to their underlings. Reaching out directly to even your lowest-level employees from time to time is also a good idea.[15]
2022: remote work choice up 24%, hybrid work choice up 16%, in-office work choice dropped by 24%
If all the facts in this report haven’t convinced you yet that offering remote work to your employees as a small or medium-sized business, I don’t think anything will. But, as one last plea, consider that in the past year, interest in working remotely or in a hybrid environment has increased more than ever.[6] There was great interest at the start of the pandemic in 2019 and 2022 in remote working among employees, but it has just continued to rise and rise.
The facts don’t lie. Employees are demanding remote or hybrid work models and will quit if they don’t get it. Virtual office services result in higher profits and happier workers. And, if you’re business model doesn’t support 100% remote options, going hybrid is better for profits and employee retention than keeping business as usual.
Conclusion
We hope this study has helped show you the ways in which remote work and virtual office services can help keep your business profitable and your employees happy.
If you’d like to know how we came to our conclusions, please check our sources below or look at the attached Methods and Procedures document.
Are you a business owner looking to maximize profits and retain workers through virtual office solutions? Please reach out to us on Facebook, Twitter, or contact us directly for more information.
