• Common types of business communication
• How do good business communications practices support success?
• What are the repercussions of bad business communications?

Q: What is business communication? Why is it important?

A: Business communications refers to the exchange of information, ideas, and messages within an organization or between different organizations, with the aim of achieving business objectives. It encompasses various forms of communication, including written, verbal, and digital methods, and plays a crucial role in the success of businesses by facilitating effective collaboration, decision-making, and relationship-building.

Business communications play a vital role in any company.

These communications can be internal, such as those between employees, teams, and through different employee levels, such as a manager to an employee, or an employee and Human Resources.

Business communications can also relate to communications between your and another business or between your business and customers.

Employees spend nearly half of their workday communicating in some form, and digital communications are more popular than ever, so focusing on your business communications is critical to successful business transactions.

Read on for common types of business communication, how good business communications support success, and the repercussions of bad business communications.

• Common types of business communication
• How do good business communications practices support success?
• What are the repercussions of bad business communications?

Common types of business communication

Your business may use many different modes of communication for a variety of reasons, whether it be for operational matters, strategic plans, policies, projects, or any other relevant topics.

The objectives and outcomes can vary depending on your specific situation, who your business is communicating with, and the chosen mode of communication.

Business communication comes in many forms, so we’ve compiled a list to help you sort out which are the most common:

• Internal
• External
• Written
• Verbal
• Digital
• Nonverbal

Internal communications

Internal communication refers to communication within an organization, involving interactions among employees, departments, and management levels.

Internal communications ensure that everyone is aligned with the organization’s goals, fosters teamwork, and facilitates the flow of information throughout the company. It can take the form of memos, emails, meetings, presentations, team collaboration tools, and other channels.

External communication

External communication involves communication with individuals or entities outside the organization, such as customers, suppliers, partners, investors, regulatory bodies, and the public.

External communications aim to establish and maintain relationships, manage the company’s reputation, promote products or services, handle customer inquiries or complaints, and engage with various stakeholders. It includes channels like email, phone calls, social media, press releases, advertisements, and face-to-face meetings.

Written communication

Written communication plays a vital role in business, enabling the creation of clear and formal records. It includes emails, letters, reports, memos, proposals, presentations, and other written materials.

Effective written communication involves using concise and understandable language, proper grammar and spelling, and organizing information in a logical manner.

Verbal communication

Verbal communication includes face-to-face conversations, meetings, phone calls, and video conferences.

It allows for immediate feedback and clarification, enables the expression of emotions, and promotes personal connections.

Effective verbal communication involves active listening, clear articulation, and the ability to adapt communication style to the audience.

Digital communication

With the increase in working from home and hybrid work models, digital communication is more important than ever.

Digital communications include email, instant messaging, video conferencing, collaboration platforms, social media, and project management tools like Salesforce and Asana.

Digital communication offers convenience, speed, and the ability to reach a wide audience, but often requires greater attention to detail and security measures. Tone can be hard to convey when relying on text or voice alone, so creating solid digital communications rules ensures your employees know what is expected.

Non-verbal communication

Non-verbal cues are arguably the most difficult to interpret. Subtle things like body language, facial expressions, tone of voice, and gestures, can all mean different things to different people.

If in-person meetings or video conferencing is a regular part of your business, you and your employees may benefit from training in how to read non-verbal cues.

How do good business communications practices support success?

Communication plays a central role in almost every aspect of business imaginal. Business owners must be deft at talking with their employees to convey succinct and thorough descriptions of what they are required to do.

They must also be skilled at communicating with vendors, customers, and other businesses. There are many ways in which business communications play a pivotal role:

• Collaboration
• Productivity
• Customer Relations
• Crisis Management
• Internal Culture

Collaboration

Effective communication allows employees to easily collaborate with others and across teams. Concise instructions allow employees to understand the expectations under which they should operate and lead to better teamwork.

Smart business owners utilize technology to aid in collaboration. Things like email, video meeting options, and messaging apps should all be used to allow employees the option of using whatever tools they are most comfortable with to communicate with others.

A quality Virtual Office can also provide more ways to communicate, and a Virtual Office from Alliance allows for more social employees or those looking to break the monotony of working from home can work from one of our professional and well-known business addresses.

Productivity

Good communication reduces misunderstandings and vague instructions. This allows employees to make the most of their time, as they don’t have to waste hours trying to find out exactly what they’re supposed to do.

By providing clear instructions, regular updates, keeping communication channels open, and encouraging your employees to speak up when they have questions are all great ways to increase productivity and create happy employees.

Customer Relations

Effectively communicating is vital to creating and maintaining a strong relationship with your customers. Giving them multiple options to reach you and responding promptly to concerns or complaints builds trust and loyalty and adds to customer satisfaction.

One of the best ways to increase customer relations is to not rely entirely on automated services. 73% of customers would skip a robocall to reach a human answerer first, so using services like Alliance’s Live Receptionists would be a great way to increase business communications with customers.

Crisis Management

During a crisis, communication is one of the most important things you can do as an employee, business owner, or company stakeholder. Delivering clear and direct communication through multiple channels helps retain trust, manage expectations, and mitigate risks.

To minimize any damage to your company, ensure that all internal parties have clear instructions on how to communicate the issue and what will be done to fix it.

Internal Culture

Many managers and business owners point to internal culture being lacking as a reason to enforce mandatory office days. However, this lacks empathy for the many employees who benefit by working from home.

A happy middle ground is the recent rise in hybrid working models. Employees who may have a disability or are just simply more introverted may feel better supported if they have options rather than being forced back to the office from 9-5.

Internal culture doesn’t have to suffer just because remote options are utilized. Consider using an affordable Virtual Office in conjunction with professional meeting spaces to support an inclusive environment and increase employee satisfaction and retention.

Read More: Getting Started with Alliance Virtual Offices

What are the repercussions of bad business communications?

Above, we’ve covered some of the key types of business communications and why effective communications are so important to success. But, what if the opposite is true?

What happens if your business has bad communication?

Below, we’ve compiled a final list to show the dangers of failing to invest in proper business communication practices:

• Decreased Employee Retention
• Decreased Customer Retention
• Misunderstandings and Decreased Productivity

Decreased Employee Retention

Poor communication between you, employees, and teams can cause decreases in morale, confusion, and teamwork.

When faced with so many errors and missed meanings, employees may feel the pull to work for a competitor with more effective business communication.

Ensure you keep employees and team leads happy and confident by having clearly defined tasks and effective standards of communication with each other, you, and your stakeholders.

Decreased Customer Retention

When customers are repeatedly met with poor communication from your employees, they may be tempted to spend their money elsewhere.

Delayed communications from businesses when it comes to questions, and even worse, complaints, will lead to angry customers. Angry customers most likely not take their business to you in the future.

The last thing you want as a business owner is poor word-of-mouth advertising, as92% of consumerstrust it over all other forms of advertising.

Misunderstandings

Finally, although it may seem obvious, misunderstandings can be a cause for all the above-mentioned points.

Misunderstandings can lead to employees and customers getting frustrated and leaving; it can cause legal problems, damage your reputation, and lead to an overall decrease in productivity.

Strengthening business communications decreases misunderstandings, strengthening your ability to build a strong company.

Further reading

• What is a Virtual Office and How Does it Work?
• Virtual Office Prices | How Much Does A Virtual Office Cost?
• How to Amplify Customer Service with a Live Receptionist

Overall, business communication is a complex discipline that involves several channels and is vitally important to your business’ success.

Effective business communications can increase collaboration, productivity, and customer relations, among many other factors.

Poor communication between your employees, customers, stakeholders, and anyone else you do business with can have far reaching ramifications.

Don’t gamble with your business’s reputation, employee retention, and customer happiness. Speak with a representative from Alliance Virtual Offices today to see what we can do for you, or check out our blog for more information!

The post Unlocking the Art of Business Communication: Strategies for Building Stronger Connections first appeared on Alliance Virtual Offices.

Anyone who has or wants to start their own business is required to have a registered agent. That agent must reside within the state your business is registered and be available during business hours, on business days, at the registered address. 

There has been very little scientific research into the effectiveness of registered agents. Existing literature suggests that the registered agent system is outdated, but what other options are there? 

Becoming a registered agent has no concrete requirements. Many entrepreneurs think serving as their own agent is a great way to save money … But is it? What do you get from hiring an outside agent over serving as your own? Read on to find out! 

Be sure to click on our ‘Read More’ links for further information, check our references below to test our credibility, and read the attached Methods and Procedures PDF to see how we found our results!

Read More: What is a Registered Agent? 

Our key findings are as follows: 

1. Spending on registered agents in the U.S. is similar to the amount spent annually on paper clips. 

2. If a registered agent makes errors handling your taxes, you may still be personally liable. 

3. There are three kinds of agency failure: Agent failure, client failure, and mutual failure. 

4. There are no specific qualifications needed to become a registered agent. 

5. You can act as your own registered agent, but you probably shouldn’t. 

U.S. spending on registered agents similar to paper clip budget 

 In 2020, The Journal of Corporation Law published a study investigating the use of registered agents. They sought to show that the registered agency system was flawed and that clients could be better served by an electronic delivery service: email. They argued that using an individual was not foolproof.[1] With important documents, emails can be used to ensure that the documents have been delivered, received, and opened. 

The authors claim that the registered agent system is outdated and in need of a modern overhaul, pointing out that the amount the U.S. spends on registered agents (~$250 million) is similar to the budget spent on paperclips (~$110 million).[1] 

While it is true that human beings are fallible, electronic delivery systems like email can be as much or more dangerous. According to Forbes: 92% of companies had an email-related data breach, nearly 1 in 5 email cyberattacks were successful, and that smaller companies were most likely to be victims.[2] 

Protect yourself from mishandled documents   

If a registered agent makes errors handling your taxes or other sensitive documents, you may still be personally liable. According to the IRS, the penalties for mishandled tax documents are the same, no matter who does the mishandling.[3]  

If a professional service mishandles your taxes or other documents, they should take all necessary measures to rectify the situation on your behalf. This ensures you that they have the best intentions, it was an honest mistake, and that they are a reliable service to use in the future.  

Unfortunately, many times these companies are not required to make any amends. Protect yourself from this becoming your situation by carefully reading the contract you signed when hiring a tax preparer. If you suspect any errors were made purposefully, you’ll need to file a 14157-A form to report fraud or misconduct to the IRS.[4] 

The 3 types of agency failure   

On the topic of how registered agents can make mistakes, there are three types of agency failure: Agent failure, client failure, and mutual failure. 

In agent failure, the person or company hired to be the registered agent drops the ball. The agent might accept correspondence or documents and neglect to pass them on to the client. Even the best organized registered agent is not immune to human error, but larger agencies may provide more protection against this type of error due to errors-and-omissions or malpractice insurance. 

The second type of agency failure is called ‘mutual failure.’ As the name implies, this is where both the client and the registered agent make mistakes. Common examples of mutual failure are if a company changes its name, address, or hires a new registered agent without informing its current registered agent of the changes.  

For example, a client moves its principal location to a new address but fails to inform their registered agent. The registered agent receives correspondence for their client, but forwards it on to the old address. Here, both parties are at fault, as the client failed to update the address, but the agent didn’t follow up to ensure the documents were received. 

Finally, there’s client failure. This type of failure is also pretty straightforward. Client failure is when the agent or agency does their due diligence to ensure everything is delivered to the client in a timely manner, but the client fails to act and a default judgment has been entered in the courts.[1] 

Who can become a registered agent?   

Despite the importance of a registered agent’s duties, there are no specific qualifications needed to become a registered agent. Different agencies will want different qualities and experience from their agents, but having the following is a good place to start if you’re interested in this field: 

• Degree(s) or experience working in legal affairs 
• Detail oriented 
• Highly organized 
• Always available, on location, M-F from 8am-5pm 

Now, this doesn’t mean you will be working all these hours, but you will need to be available in case any important paperwork needs relayed to your client. 

This can be a great job for someone who wants to test working in the legal field, or more experienced workers looking to for a lighter workload. Compensation for a registered agent role varies by location, but an average salary is between $20-30 per hour.[5][6][7] 

Read More: How to Become a Registered Agent 

Should I serve as my own registered agent? 

While legally, you can serve as your own registered agent, the benefits of hiring an outside service are far worth the nominal fee. The only requirement you need to serve as your own registered agent is an address within the state your business is registered.  

If you use your home address, this becomes a matter of public record, and anyone can find this information easily. This leaves your home and family open to be found by any disgruntled employee or angry customer. 

You also have to be available at home M-F from 8am-5pm to receive government documents and other important correspondence. When running your own business, time is your greatest resource. Sitting home during prime business hours can hamper your productivity and cut directly into your profits. 

Speaking of cost, registered agents generally only cost around $100-150 per year, with more expensive services topping out at around $300 per year. When you measure that cost against all the opportunities, you’ll miss by sitting at home all day, the benefits are clear.[8][9] 

Read More: Can I Be My Own Registered Agent?  

Conclusion 

We hope this report has been informative and helpful on your journey to start a new business, run your existing LLC, or form a plan of action around securing a registered agent. 

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. For more information, click our ‘Read More’ articles and check out all our registered agent resources on our blog! 

Are you a current or prospective business owner looking to secure reliable registered agent services? Please reach out to us on Facebook, Twitter, or contact us directly for more information!

References 

The post Registered Agents: The Good and the Bad first appeared on Alliance Virtual Offices.

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: 

1. Using outsourced reception services saves up to $163 million for established businesses, depending on size.  
2. Having employees work remotely saves $11,000 per employee per year.  
3. When working from home, a hybrid worker saves $19.11 per day over working from an office, totaling nearly $5,000 per year.  
4. 63% of coworking space owners plan to expand.  
5. The largest demographic that uses coworking spaces are small-to-medium-sized businesses at 37.93% 
6. Remote workers who got detailed instructions from their employers were five times more likely to be productive.  
7. 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. 

The post Outsourcing Reception Services Saves up to $163 Million first appeared on Alliance Virtual Offices.

We analyzed 64,950 data points over hundreds of studies to discover how new and established trucking companies can maximize their profits and avoid shutting down. Offering new technologies, supporting driver retention, and profiting from freelance positions are the key to success.  

Specifically, we sought to investigate how modern technologies can impact small trucking companies, how they operate, and how they can improve. 

References for this study are included, and the methods and procedures used to draw conclusions can be found in the attached Methods and Procedures PDF.  

The numbers don’t lie, so let’s jump right in. 

Our key findings are as follows: 

1. Freight revenues are expected to grow 53.65% by 2030 
2. Driver retention is a crucial aspect of success – 30% of drivers quit within 3 months – 50% leave by month 6 
3. How to avoid being in the 85-90% of startup trucking companies that fail 
4. Diversify your team to avoid doing everything yourself 
5. Save up to 30% on salaries by hiring freelancers 
6. Make the best of both worlds by having a flexible working space 

Freight revenues expected to grow 53.8% by 2030 

According to the American Trucking Associations Freight Transportation Forecast for 2019 to 2030, overall freight tonnage will increase to 20.6 billion tons by 2030, resulting in a 53.8% rise in revenues totaling $1.601 billion.[1] While this is excellent news for your bottom line, it also allows you to invest in ways to grow your business and keep your drivers happy.  

It’s no secret that there is a nationwide driver shortage. This extra capital could be put towards raises for your drivers. The average driver’s yearly salary is $5,822 lower than the national average.[2] Even experienced drivers with higher salaries may think twice about remaining in the field after the mass layoffs during the pandemic, long stretches away from home, long working hours, and the risks associated with driving tractor-trailers.[3] 

“When it comes to pay, most companies in this industry are very open about the gross payments and RPM they are offering. Strive to be a leader in this category, even if at first it doesn’t make sense on paper. If someone believes you have their best interest at heart, they will run through a wall for you. What you are offering money-wise is the first indicator of if you are in it for yourself or for your drivers.”[4] 

30% of drivers quit within 3 months – 50% leave by month 6 

We’ve covered that there is a driver shortage, but driver retention is another big problem in the trucking industry. A great way to combat this AND keep your drivers safe is to invest in electric and/or smart trucks for your fleet. Imagine the excitement of a driver when they get the most technologically up-to-date tool on the market to perform their job!  

Smart semis are a great way to increase new truck drivers’ retention and help keep them safe. Smart semi-trucks offer safety measures like warnings when creeping out of lanes, multiple cameras to see all around the vehicle, and automatic braking to avoid crashes. Adaptive cruise control is another feature that keeps drivers safe in heavy traffic by accelerating and decelerating with the traffic flow. It also increases comfort, as they can shift positions or stretch in traffic jams without worrying about speed. 

Depending on the weight, an electric semi-truck can drive 500+ miles before needing to be charged.[5] They’re relatively new, but keep an eye on these types of smart trucks, as they will undoubtedly become more and more efficient as time passes. Additionally, many electric semis have the added benefits of smart semis detailed above. 

Make sure you don’t wait too long on this new technology – you want this to be a new incentive to drivers, not the expected norm. 

85-90% of startup trucking companies fail 

Additionally, in 2020, more than 3,140 trucking companies closed their doors for good.[3] Embracing safety technologies is another way to invest your profits and avoid being one of the above statistics. Keeping drivers happy is key to keeping your business’s doors open. In addition to increased pay, another way to show your drivers you care is to increase their personal safety.  

Dashcams and apps for drivers are both great ways to help your employees stay safe. Dashcams protect them (and you) from lawsuits in the event of an accident that is not your driver’s fault. There are tons of ready-made apps that your drivers can use to facilitate communication. Some, like Samsara’s CoPilot app, consider the truck’s weight and dimensions to help navigate truck-friendly routes. 

Don’t try to do everything yourself 

We’ve already discussed the failure rate of trucking companies, but did you know that poor management is one of the top 5 reasons for failure?[6] Cutting costs by trying to manage drivers, getting new clients, doing your own accounting, and being a one-person customer service team is a surefire way to tank your business. While you save money in the short term, it’s much more likely to make you suffer in the long term. 

Be honest with yourself: Do you have experience as a manager? An accountant? A customer service rep? Even if you do, evaluate that experience through the eyes of your clients and/or employees. Did you have a high turnover rate or any complaints against you? If any of these questions ring true, think about if you can do everything independently.  

If you’re confident in your abilities, reach out to trusted friends, family, and former employers/employees for their honest opinion. People often overestimate their abilities. Having an outsider’s perspective can help you see your strengths and weaknesses more clearly. Once you’ve taken these steps, you’ll see that you need strong team members to help you succeed. 

Hire freelancers to save a fortune 

Save 20-30% annually by utilizing freelancer workers through websites like Upwork to get top talent without paying costs associated with full-time employees, like health insurance, retirement, Medicare, and Social Security.[7] There are highly talented people with the exact skill set you’re looking for in a price range you can afford. The added bonus? They’re specifically looking for what you have to offer – they’ll even compete for your position! 

According to Forbes, freelancers are equivalent in skill, more productive, more engaged, and as satisfied as full-time employees.[8] 

The best of both worlds 

If you’re determined to have all your personnel in one place, consider a shared working space and a virtual phone line over a brick-and-mortar office, like those offered by Alliance Virtual Offices.  

Having access to a shared working space offers the safety of being able to manage all your team members in person at a substantially lower price than a regular office. This also allows work from home options for your non-driver employees. Let them work from home for tasks that don’t need constant supervision but have some office hours to ensure everything is being done to your standards. 

With Alliance’s services, you can also have access to a Live Receptionist for customers and distributors to call with any questions or issues. With this service, you don’t need to worry about constantly monitoring your phone or email during busy office hours. You can focus on day-to-day tasks without constant interruptions while knowing our professional staff will help filter important information.  

Conclusion 

We hope this study has helped inform you of how diversified ways of thinking and action can improve your trucking business. 

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 small trucking business, a driver, looking to streamline or expand your small freight business? Please reach out to us on Facebook, Twitter, or contact us directly for more information. 

The post Freight Transportation Revenue to Grow 53.65% by 2030; New Insights into Future-Proofing the Trucking Industry first appeared on Alliance Virtual Offices.

We analyzed 2,369,405 data points over hundreds of studies to discover how virtual office services can support solo lawyers, freelance lawyers, and small legal offices. Specifically, we sought to investigate the uses, benefits, and detriments of using virtual services for small firms and solo or freelance lawyers. 

Methods, procedures, and references for this study can be found in the Methods and Procedures PDF.  

The findings are intriguing, so let’s get right into the numbers: 

Our key findings are as follows: 

1. Starting/expanding a virtual small firm saves $20k-50K over brick-and-mortar equivalents; medium firms save up to $250K 

2. Working from home and using a virtual assistant can save up to 4 billable hours per day 

3. Solo lawyers and small firms say virtual office solutions protect their privacy, increases networking, and retains support staff 

4. 86% of low- and no-income households have inadequate or no legal counsel – a huge potential market  

Starting/expanding a virtual small firm saves $20k-50K; savings of 250K+ for medium firms 

When contemplating a solo business or small firm startup, first things first: cost. Starting an in-person setup, you can expect to spend between $20,000 to $50,000. If you’re upgrading a medium firm, the cost can exceed $250,000 (Maslow, 2022).  

45-50% of these costs are due to office expenses: rent, electricity, employee salaries, waste disposal, and office supplies (Meunier, 2021). Expanding or starting up using a virtual office can offer significant cost saving measures. 

Using rentable, shared office space saves 30% over long term office space leases (Sossman, 2022). 

Virtual Offices and Assistants Save 4+ Billable Service Hours/Day 

First off, Virtual Customer Assistants (VCAs or CSAs) can handle five times more call volume than you can (Ali, 2021). Having a virtual assistant saves you 2+ hours per day in handling customer inquiries, coordinating calendar appointments, and scheduling follow-ups (Roemer, 2021). 

Additionally, having no commute can save you around another 2 hours per day. Therefore, by outsourcing customer service and working from home, you have an extra 4+ hours of billable services every day (Roemer, 2021). 

In a study of 600 senior managers, 100% said their virtual assistants were essential, and 64% said that they saved them money (Krat, 2022). 

If you’re looking to hire an assistant, an entry level applicant with no experience generally asks $10.25+ per hour, or around $20K per year. If you want someone with executive, high-level experience in the law field, you’ll be forking over $90K+ per year (Glassdoor, 2022). However, using our highly talented live receptionists starts at only $125 per month. 

What other solos and small firms have to say  

In a study conducted by clio.com of 4,776 solo lawyers, 82% said they had no commercial office space. In the same study, 88% said more automation would better serve their clients, 86% said advanced technology significantly betters the client’s experience, and 52% said advanced technology improves their work/life balance (Clio, 2020). 

Having an office presence is also a huge benefit. Solos report that it looks more professional to have an office space. It also protects their personal safety, as having your home phone number and address publicly available can expose threats of crime and violence. Having the option to go into a dedicated office space can help productivity by getting away from distractions, as well as putting work away when you get back home (Meunier, 2021). 

Something that may be surprising about shared offices is that it increases networking opportunities. Having access to so many different professionals automatically increases the number of people you interact with who may seek the advice of a lawyer (Sossman, 2022). 

Another benefit to having a hybrid model over a traditional practice is that it’s hard to retain support staff and new-to-the-field lawyers who have so many options. An introverted legal aid may prefer to work from home, while an extroverted first-time lawyer would much rather have the socialization of a shared office (Roemer, 2021). 

86% of Low- or No-Income Households Have Inadequate Legal Counsel 

Any lawyer, whether as a solo or in a huge firm, knows that anticipating their clients’ needs is of critical importance. In the Clio study cited above, 6,125 members of the general public were also included in the study. Nearly 80% of respondents cited needing remote options to meet their needs (Clio, 2020). 

In 2017, the Legal Services Corporation conducted a study of 2000 adults classified as low or no income. Of these individuals, 86% reported inadequate or no legal counsel. 71% of this group also reported having at least one civil legal problem (LSC, 2017).  

Having affordable office solutions allows you to take on more clients for lower fees while still retaining more profits. Gathering a portion of that 86% who would otherwise have no legal representation is not only a moral thing to do, but also allows for more income. Word of mouth among other no and low-income households combined with targeted advertising will go a long way to building a solid reputation and a profitable firm. 

Conclusion 

We hope this study has helped inform you of how virtual office solutions impact solo lawyers, freelance lawyers, and small law firms. 

If you’d like to know how we came to our conclusions or check our sources, please take a look at our Methods and Procedures document.  

Are you a solo lawyer, freelance lawyer, work in a small firm, or want to start working in one of these environments? Please reach out to us on Facebook, Twitter, or contact us directly for more information. 

The post Starting a Virtual Law Practice Can Save $250K/Year first appeared on Alliance Virtual Offices.

Virtual offices create business for real estate sellers, brokerages, and Airbnb investors 

We analyzed millions of data points and hundreds of studies to discover how virtual offices benefit real estate investors. Specifically, we sought to investigate how solo investors, small brokerages, and Airbnb investors utilize virtual office services to increase revenue and expand business. 

We conducted this study to examine how 24/7 live receptionists, professional business addresses and phone numbers, and access to shared office spaces provide value to those in the real estate market. 

References and methods for this study can be found in the Methods and Procedures PDF.  

Our key findings are as follows: 

1. Expanding a brick-and-mortar brokerage can cost over half a million dollars – Virtual office expansion is more cost-effective 

2. As a buyer, having a business address and live receptionist can help increase your legitimacy to sellers and protect your privacy 

3. Using a live receptionist in lieu of voicemail avoids lost business and maintains a professional image   

4. 81% of Airbnb’s revenue came from whole-unit rentals where the owner is not present – whole-unit rental revenue has increased by an average of 76% each year 

5. Coworking spaces save money – Most include utilities, internet, and cleaning in the lease rate 

6. 97% of consumers check a company’s online presence before deciding to use their services 

7. Real estate expert says providing brick-and-mortar office as well as virtual services is the best of both worlds 

Expanding a brick-and-mortar brokerage costs over half a million dollars 

While at first glance, starting an online brokerage can seem exponentially expensive. Hiring software developers to create a system specific to your needs and your team can cost millions. But major savings can be made if you take advantage of existing software like Teams, Zoom or Slack for communication and training purposes. Tens of thousands of dollars in startup costs can be saved just by not having a lease. 

Online brokerages attract more tech-savvy agents, have lower start-up costs, offer splits and fees to agents, and are less expensive to expand. Expanding a brick-and-mortar brokerage can cost over $600,000 with no guarantee of success – expanding an online brokerage can be close to free; so, much less risk is involved (Moudry, 2021).   

Virtual Offices increase legitimacy for solo investors 

It goes without saying but buyers are wary of getting scammed. Phrases like “Cash offer guaranteed” and “We buy ugly houses” have become almost synonymous with, “You won’t get the price you want,” or even, “This is a scam.”  

As a buyer, knowing an agent or investor has a business address, and live receptionist helps to increase your legitimacy to buyers and sellers, especially those needing a quick sale (Lindhal, 2021).  

80-90% of real estate investors and agents work through mobile devices, at home, or a combination of the two. Having a business office address, phone number, and 24/7 receptionist helps to increase your legitimacy to buyers and sellers alike (Moudry, 2021).  

It also helps protect your anonymity and sanity. Real estate personnel of all kinds know that being on-call 24/7 is one of the hardest aspects of the job. Giving out your personal phone number is a given, but can’t there be a work-life balance? Having a 24/7 receptionist can help you set boundaries while still giving your clients the best service imaginable. Keeping your private residence confidential can keep you and your family safe. 

Live receptionists increase trust and avoid lost business 

Voicemail is becoming a thing of the past, but that doesn’t mean you have to answer calls at all hours. Using a live receptionist in lieu of voicemail can also help to avoid lost business and maintain a professional image (Servcorp, 2021).   

80% of callers sent to voicemail simply hang up due to fear that they won’t be heard. This is understandable, as 30% of voicemails go unanswered for at least three days (Colvin, 2009).  

This isn’t to say your business will increase by 80%, but it will help increase trust in your clients and reassure them you are a reputable business. Clients are more likely to respond positively to a live, human voice rather than an automated service or voicemail. 

Whole unit rental price increased 75% each year 

Investing in Airbnb properties is big business at the moment. Buying up single-family homes with the express purpose of making them Airbnb’s can be a sound investment opportunity. The best part is, you don’t even have to be there to make money! 81% of the 2017 income of Airbnb hosts came from rentals of entire units where the owner was absent during the entire guest stay. 

Even if you only have one property to rent, income from whole-unit rentals has increased by around 75% every year. The income increases as your number of properties grows – Commercial hosts and multi- property users are one of the fastest growing operators on Airbnb. In fact, hosts with at least ten available rentals make up a quarter of all growth for multi-host Airbnb users (iPM, 2022). 

Co-working spaces save money 

If you’re a solitary investor or have a small brokerage, coworking spaces can save you money. Most co-working spaces have everyday expenses like utilities, internet, and cleaning services included in the lease (Moudry, 2021). In addition to saving you money, it also saves time by eliminating the effort involved in hiring cleaning staff and paying bills. 

97% of consumers search for a company online 

97% of consumers check a company’s online presence before deciding to use its services (Hostaway, 2022). Put your best face forward and increase trust in potential buyers and renters by having a professional-looking web presence. Having a local business address and professional answering service will help you stand out from the field and attract more clients. 

Having a virtual office and physical location is the best of both worlds 

Sean Moudry, CEO of a real estate market center and REALTOR Magazine 30 under 30 featured broker (REALTOR Magazine, 2002) recently wrote in favor of having both an in-person brokerage AND a virtual office. In the conclusion of his 2021 article for the close he stated, “If I was starting a brokerage today, I would still provide a small brick-and-mortar office while offering virtual services – the best of both worlds,” (Moudry). 

Conclusion 

We hope this analysis has been informative and interesting. 

If you’d like to know how we came to our conclusions or check our sources, please take a look at our Methods and Procedures document.  

Are you a real estate investor? Please reach out to us on Facebook, Twitter or contact us directly for more information. 

The post Expanding Real Estate Business Virtually saves $500,000 first appeared on Alliance Virtual Offices.

We analyzed millions of data points and hundreds of studies to determine how, if at all, working from home impacts career advancement. We found that hybrid workers had the best prospects, outweighing both online-only and in-office employees. 

References and methods for this study can be found in the Methods and Procedures PDF.  

We know you’re ready for the statistics, so let’s dive in. 

Our key findings are as follows: 

1. Remote workers are 38% less likely to receive bonuses 

2. Remote workers have worse performance reviews and don’t advance as quickly as their office-working peers  

3. Remote workers do nearly 50% more overtime compared to in-office workers 

4. Hybrid workers earned on average 23% more than remote workers, and 12% more than office-only workers  

5. From 2019 to 2020, the number of women working from home rose 7% more than men  

6. The employment rate for disabled people dropped 1.4% between 2019 and 2020. For those without a disability, it dropped by 4.5%  

7. Asian Americans and Pacific Islanders were the largest demographic to be able to work from home during the pandemic at 39.2% 

8. 70% of the cities where remote work is most popular have a higher cost of living than the national average  

9. 70% of workers agreed that remote worker’s wages should be set by the cost of living in their city of residence 

 Remote workers 38% less likely to receive bonuses  

Regardless of their base salary and in what sector they worked, remote employees were 38% less likely to get bonus pay than their office working counterparts between 2011 and 2020.  

Management and supervisors seem to be biased when it comes to judging the quality of work produced by remote employees.  

When a worker is seen in the office every day, it can be easy to judge those a manager knows better to be more worthy (Martin, 2021).  

With the pandemic skewing remote work trends, it remains to be seen if this will continue post-COVID. 

Remote workers have worse performance reviews, fewer promotions 

As stated above, when managers don’t directly see what their employees are doing, or even see their employees at all, a negative bias develops.  

It’s an easy assumption to make – if you don’t see your employees working, it is harder to imagine what they’re doing or wonder if they’re even working at all.  

Dan Schawbel of Linkedin suggests that both employees and managers need to work to address this bias by establishing clear objectives, success milestones, and regular virtual meetings with cameras turned on for greater visibility (2021). 

 Remote workers do nearly 50% more over time compared to in-office workers 

The same article mentioned above shows that despite getting fewer promotions, bonuses, and raises, remote workers put in far more hours than their in-office peers.  

Online employees work nearly 50% more over time, further exacerbating the gulf between what managers think of their remote employees versus what they actually do (Schawbel, 2021). 

Hybrid workers earned on average best salaries 

Seeming to blend all the good aspects of in-office work and the added convenience of working from home, hybrid workers made better salaries than both in-person and online employees.  

Hybrid workers, those who spend some time working in person and some time working online earned 23.4% more than employees who worked entirely online.  

Additionally, they earned 12% more than those working completely in person (Martin, 2021). 

More women are working from home than men 

During the pandemic, from 2019 to 2020, the number of employees working from home rose from 22% to 42%.  

Interestingly, the number of women working from home increased more than that of men.  

The number of women rose by 23%, whereas the number of men only increased by 16% – a 7% difference (Strozewski, 2021). 

Disabled people retained employment 3.1% more than non-disabled: 2019 – 2020.  

The national unemployment rate soared to its’ peak in April of 2020, reaching 14.7% (Bureau of Labor Statistics, 2021).  

From 2019 to 2020, 61.8 million people without a disability were employed, a 4.5% drop from the previous year.  

For people with a disability, the employment rate only fell by 1.4% (National Organization on Disability, 2022).  

While any drop in employment isn’t good, the fact that disabled workers were able to retain employment at a much higher level speaks to the fact that offering remote work encourages diversity, equity, and inclusion.  

Offering remote work options helps disabled people, which make up 15% of the global population, remain employed. 

Asian Americans and Pacific Islanders largest demographic able to work from home at 39.2% 

It’s been well noted that workers of ethnic and racial minorities have suffered greatly due to the pandemic.  

Only 20.4% of Black Americans are able to work from home. The numbers for Hispanic Americans are even worse at 15.2%.  

Following this line of reasoning, one might think that white workers would fare best, but they don’t. 25.9% of white Americans are able to work from home.  

A possibly surprising 39.2% of Asian Americans and Pacific Islanders (AAPI) are able to telework (Gould & Kandra, 2021).  

However, the number of AAPI workers who were not able to retain their position led the U.S. population in those with long-term unemployment and many have had to suffer from and/or hear news about their fellow AAPI-ers enduring attacks and hate crimes.  

48% of the AAPI population of unemployed individuals remained out of work for 6+ months as of 2021 (Ramirez, 2021).  

70% of most popular remote work cities have a higher cost of living than the national average 

The 10 cities with the highest number of remote workers are: 

• Bend, Oregon 
• Asheville, North Carolina 
• Wilmington, Delaware 
• Johnson City, Tennessee 
• Eugene, Oregon 
• Cape Coral, Florida 
• Charleston, South Carolina 
• Tampa Bay, Florida 
• Jacksonville, Florida 
• Orlando, Florida 

Of those 10, 70% have a higher cost of living than the national average. The cost-of-living indices are based on an average of 100. 

The three cities that fall below the average are Wilmington, DE (89.9), Johnson City, TN (82), and Jacksonville, FL (93.5). The highest is Bend, OR at 123.5 (Smith, 2021, & Best Places to Live, 2022). 

70% of workers agreed that remote wages should be set by the local cost of living 

With the recent rise in the number of remote workers, many employees are taking advantage of their newfound freedoms by moving to areas with lower costs of living.  

While this is great to extend the amount your salary can cover, it also creates tension for employees who cannot work from home or choose not to.  

According to a survey of 7,000 workers in the UK, 70% agreed that salaries should be set depending on the cost of living based on your city of residence, while 30% felt it was unfair.  

Many companies are offering incentives to employees to entice them back into the office, like wage increases or stipends to cover travel costs, but providing different pay to workers doing the same job based on their location can get tricky.  

The key to successfully navigating this complex issue is openness and honesty. Get feedback from your employees and make sure that no one accidentally finds out what their salary is based on (Ro, 2020).  

Conclusion 

If you’d like to know how we came to our conclusions or check our sources, please take a look at our Methods and Procedures document. We hope this article has been interesting and informative. 

But what has your experience been? Please let us know by reaching out to us on Facebook, Twitter or contact us directly. 

The post Remote Work Might Damage Your Career Advancement, new study. first appeared on Alliance Virtual Offices.

We analyzed hundreds of studies with millions of data points to determine exactly what costs a business would incur by continuing remote or hybrid work models beyond the pandemic. 

Specifically, we investigated costs associated with cybersecurity, remote workers’ attitudes towards compensation, and the quality of applicants seeking remote work.

References and methods for this study can be found in the Methods and Procedures PDF.  

The numbers are intriguing, so let’s get to work. 

Our key findings are as follows: 

1. Home workers are the primary target of criminals as cyberattacks have risen 238% in volume since the beginning of the pandemic.  

2. 65% of workers would take a pay cut to work from home. 

3. Commuting 10 hours less per week results in a 20% raise.  

4. 30% of remote workers do not get regular training from their employers. 

5. 44% of remote workers engage in cybersecurity trainings once per year or less. 

6. IT and technology, digitization and analytics, and consulting are the most globally remote professions at 74% or more.  

7.  75%+ of remote employees pay for their home office-related costs. 

8. 64% of recruiters able to offer remote work options report higher-quality applicants. 

Home workers target of 238% increase in cyberattacks

Since the start of the pandemic, cybercriminals have seized their chance to prey upon companies and workers who scrambled to operate remotely.

69% of those forced into inadequate work-from-home situations used their personal home office equipment for work duties, 70% used their work devices for personal use, and nearly 30% allowed others outside their organization to use their office devices.

When all these factors are added up, the result is a 238% increase in cyberattacks since the start of the pandemic (Security, 2021).  

65% of workers would take a pay cut to work from home 

When considering costs associated with moving to a remote or hybrid work model, it’s important to assess what your current or future employees would like (and what you can afford) for compensation.

65% of workers would consider a lower-paying position if it meant they could work remotely (Miller, 2021). This is even more true for the coveted millennial market, as 69% of survey respondents would give up on benefits if they had more freedom in their working hours and environment (Steward, 2022). 

Commuting 10 hours less per week results in a 20% raise    

While it may seem odd that workers would give up on compensation and benefits to work from home, the reality is: workers save money when they don’t have to commute.

A commuter who travels two hours per day, five days per week, saves a total of 10 hours. According to the New York Times, the time saved would result in up to $15,000 per year or more, depending on how much you make (Goolsbee, 2021).  

30% of remote workers do not get regular training from their employers 

87% of remote workers get regular training, but only 70% get it directly from their employer. The good news about this statistic is, 17% of remote workers care enough about their positions to seek out training on their own.

These activities include online courses, workshops, and professional development opportunities that are often paid out of pocket by the employee (Steward, 2022). 

56% of remote workers engage in cybersecurity training twice or more per year 

Since the start of the pandemic, remote work has increased the cost of data breaches for an average company by $137,000. However, this could be due to a lack of training. 56% of remote workers receive cybersecurity training twice or more per year.  

While this is encouraging, it also means that 44% of remote workers receive cybersecurity training only one or fewer times per year (Steward, 2022). Cybercrimes take many forms and often adapt at an alarming pace. Making sure remote employees are properly trained in cybersecurity safety is of the utmost importance. 

 IT and technology, digitization and analytics, and consulting are the most globally remote professions at 74% or more 

When considering remote work permanence, it’s a good idea to assess which of your company’s positions are most suited to remote work. Jobs in IT and technology are usually the first thing to come to mind – with good reasons.

77% of IT and technology jobs can be done remotely. Digitization and analytics come in a close second at 75%. But some positions that may not come to mind immediately are positions such as sales and management. 16% of employees who work from home are managers (Babu, 2022).  

75%+ of remote employees pay for their home office-related costs 

Another cost-related concern for moving to remote work is who pays for all the needed home office equipment and supplies? Currently, over 75%+ of work-from-home employees pay their own way.  

Some larger companies, like Google and Shopify, offer a one-time $1000 stipend for new employees. Others offer incentives like paying monthly internet bills or discounts on gym memberships. While paying for your employee’s home office-related costs is appreciated, it certainly isn’t the norm (as of yet anyway) (Steward, 2022; Babu, 2022; Spurling, 2021).    

64% of recruiters able to offer remote work options report higher-quality applicants 

Today’s workforce has become increasingly choosey about their place of work. So, it comes as no surprise that those with highly desirable skills no longer have to settle. Now that working has become much more digital, applicants aren’t restrained by geographical location.  

Many companies, Alliance Virtual Offices included, have successful businesses with employees all over the world. If you want to attract the best talent, offering remote work options is a must (Steward, 2022).  

Conclusion 

Those curious about how we came to these conclusions can view our method and sources PDF. 

We hope this study has been informative and enlightening. But what do you think?  

Has your business committed to continuing remote or hybrid work? What costs have surprised you? 

Please let us know by reaching out to us on Facebook, Twitter or contact us directly. 

The post Working from Home Increases Cyberattack Frequency by 238% first appeared on Alliance Virtual Offices.

We analyzed millions of figures, including those of our own workers at Alliance Virtual Offices and Allwork.Space, to see how remote work impacts individuals’ health and wellbeing. 

To our surprise, we found that all workers benefit from being offered the option to work from home, but the greatest benefits were found among several minority groups. 

In addition to a literature review, we also surveyed workers across Alliance Virtual Offices and Allwork.Space to see how our teams compared to a control group.  

We’re sure you’re ready for the stats, so check out our original research below. 

References, methods, and procedures for this study can be found in the Methods and Procedures PDF.  

Key Findings:

1. Remote work options can help utilize the unique experience and skills of minorities, increasing diversity and equity. 
2. Offering parents remote work options can put $8 billion back into the economy.  
3. When given the option to work from home, workers were 22% more productive. 
4. Remote work reduces stress by 39%. 
5. Those with long commutes, especially women, are less happy and healthy. 
6. Without proper office equipment, workers are 27.5 – 46.9% more likely to gain weight and have an increase in pain. 
7. Cycling to work increases the chance of hospitalization by 2.6%. 
8. When compared to control groups, our teams have significantly lower commutes and are healthier and happier. 
9. Those with the option for remote work were 93% more likely to feel included. 

Remote work can improve diversity and equity 

When a worker can be in the workplace without disclosing religious affiliation, race, nationality, sexual orientation, gender, pregnancies, or disabilities, the playing field is more level. The anonymity that remote work offers can provide safety and mental wellbeing for minorities by shielding them from discrimination, letting work speak for itself (Kennette, L. & Lin, P., 2021).  

The unemployment rate in the U.S. among disabled individuals is around 9% – Remote work can bring many of these people back into the workforce, increasing possibilities for economic advancement.  

According to one report, 133 million people in the U.S. are living with a chronic illness – remote work may be able to help them cope with their illnesses and stay in the workforce. (DeFelice, M., 2019).  

Regardless of mental health, disability, or minority status, 80% of all workers would leave their job to work for an organization that focused more on mental health (Westfall, C., 2020).  

Allowing workers to work from home can help break the glass ceiling 

Millions of women have either quit or lost their jobs due to the lack of childcare, especially during the pandemic (Kennette & Lin, 2021). 

Women are 32% less likely to leave their job if they have access to remote work, as it allows them greater flexibility in working hours.  

Not only would more women remain in their jobs, but offering work-from-home options for mothers could replace $8 billion in lost wages as they would be able to reenter the workforce (Connley, 2021).  

When both parents have the option to work at home, it establishes a more equal distribution of domestic labor and allows both partners to have more time with their children Additionally, educated women, who traditionally have fewer children later in life, when given the option to work from home can help them realize both their career and parenting goals (Murray, 2021). 

Interestingly, men are more likely to be hesitant in embracing remote work. In a performance-driven atmosphere, many men reported they feared their achievements would go unnoticed, whereas women did not express the same fears. There may be many reasons for this phenomenon, but men having an unfair advantage in the workplace could be one reason (Kennette, L. & Lin, P., 2021). 

Remote workers are more productive 

Remote workers are more relaxed, more efficient, and produced a higher volume of work (Guler, et al., 2021; Kennette, L. & Lin, P., 2021). 

One study showed that remote work results in an increase in productivity by 13%, including more minutes worked per shift and fewer use of breaks and sick days. When workers in this study were offered the choice between working from home and working in the office, productivity rose to 22% (Bloom, et al., 2014). 

Working from home significantly reduces stress 

Long commute times trigger the release of cortisol in the brain, a hormone associated with stress. Not commuting can reduce stress due to savings on transportation costs. 

Not driving to work is financially beneficial as it saves money on fuel, maintenance, and/or toll costs and fares such as those for taxis and ride-sharing services (Kennette, L. & Lin, P., 2021).  

Those with no commutes also reap the benefits of additional sleep time which is linked to many health benefits.  

Workers with long commutes are less happy and healthy  

Workers with long commutes spend less time working out and enjoying leisure activities. They also have lower mood levels during the workday, more mental health problems, and are less satisfied with their social lives.  

All of these negative outcomes increase in severity when commuting times are longer. Those who cycle to work seem to have the least side effects of this kind, but continue to experience some, and are exposed to other dangers, as can be seen below (Chatterjee, et al., 2020). 

Negative outcomes are also reportedly worse for women, although the cause is unclear. One possibility is that women are often responsible for more household duties during commutes, such as picking up children and grocery shopping (Chatterjee, et al., 2020; Roberts et al., 2011). 

But remote work does still have some drawbacks 

27.5 – 46.9% of those who switched to working from home during the pandemic gained weight and a slight increase in pain levels due to inadequate work-related equipment, such as office chairs and desks.  

These increases enforce the need for employers to provide information and opportunities for healthy lifestyles and proper equipment for their remote workers (Guler, et al., 2021).   

Thinking of taking up cycling? Maybe think again … 

Cycling to work has great health benefits but could decrease life expectancy for younger workers (Edwards & Mason, 2014).  

Fatal accidents involving pedestrians and cyclists account for 16% of all traffic fatalities every year (U.S. Department of Transportation, 2021). In fact, the leading cause of death globally for all people under age 54 is road crashes (Association for Safe International Road Travel, 2022).   

One study showed that commuting to work by cycling for ten years would result in 26 more hospital admittances per 1000 people (Welsh, et al., 2020).  

In addition to the risk to pedestrian and cycling commuters’ involvement in traffic accidents, these commuters are exposed to harmful chemicals.  

Exposure to these chemicals can cause cancer and non-cancer health risks. The risks are increased the longer a commuter has to travel (Lovett et al., 2018).  

When compared with a control group, our workers have lower commutes and are happier and healthier, both physically and mentally 

55% of the workers within our organization work either completely online or through a hybrid working environment.  

We sought to investigate how our personnel compared to a random control group with questions about mental health, physical health, and feelings of wellbeing.  

Here is what we found: 

Workplace options led to better feelings of inclusion 

Workers who have the option to work from home are 93% more likely to feel included (Connley, 2021).  

When offered the option to work at least 20% of their time at home, workers have less stress and lower intentions to leave their current job. 

When offered a choice of where they work, workers reported significantly fewer feelings of burnout, exhaustion, had higher satisfaction rates, and were more productive.  

Interestingly, those who were given no choice as to where they worked had more negative consequences, whether it be in an office or at home.  

This emphasizes the importance of flexibility and personal choice when determining workers’ schedules (Kaduk et al., 2019). 

Conclusion 

We hope you found this analysis of diversity, equity, and inclusion among those offered remote work interesting and valuable. 

For those curious about how we came to these conclusions, our method, sources, and procedures can be found in our Methods and Procedures PDF 

Now, we’d like to hear from you: 

What are your experiences with remote work concerning diversity, equity, and inclusion? 

Please let us know by reaching out to us on Facebook, Twitter or contact us directly. 

The post Offering Remote Work Options Creates a Diverse, Equitable, and Inclusive Workplace Environment first appeared on Alliance Virtual Offices.

Yet it’s Still Greener than Returning to the Office 

Climate change is a big issue in today’s news. We investigated how working from home impacts the environment.

We analyzed data from 20+ authoritative sources with a participant pool of over 457,171 employees and corporations to answer the question: Is working from home better for the environment? The answer is a definitive yes. 

Overall, working from home is more environmentally friendly than working in an office. Additionally, when employers offer remote work options, they experience a better reputation, boosted customer loyalty, and have happier, healthier employees. 

References and methods for this study can be found in the Methods and Procedures PDF below. 

We’re sure you’re ready for the stats, so check out our original research below.

Key Stats:

1. To neutralize 34.3 million tons of greenhouse gas emissions predicted to be produced in 2021 by working from home, a forest of over 70,000 square miles would need to be planted.
2. Companies that allow employees to work from home are experiencing customer base gains and positive boosts to reputations.
3. At Xerox, working from home saved workers approximately 92 million miles of driving, which would produce 41,000 metric tons of carbon dioxide.
4. Approximately 247 trillion sheets of paper are saved every year by working outside the office.
5. Reduction of consumption among commercial and industrial users in the US resulted in an electricity consumption drop of 6-7% at the height of work from home use during the pandemic.
6. In the United States, there was a 67% decrease in waste production for businesses in 2020 due to employees working from home. 
7. While numbers vary, the average worker reduces their carbon footprint by approximately 1,800 pounds by working from home. 
8. Between March and early June of 2020, the United States reduced its carbon dioxide emissions by approximately 15%.
9. New York employees gained back 15.2% of their time by not commuting.
10. Those traveling for work create approximately 50% of aviation’s carbon dioxide emissions.
11. Overall, buying an existing home is more environmentally friendly than renting or building a new home.

34.3 million tons of greenhouse gas emissions predicted to be produced in 2021 by working from home

While working from home has been promoted as a more earth-friendly alternative to office work, this conversation has a darker side. According to a 2021 study published by Resources, Conservation and Recycling, when every worker started logging on to video streams and online meeting platforms to perform their daily duties, internet data use rose nearly 40% from January to March of last year (Obringer, et al., 2021). 

If work from home models persist through the end of 2021, the result is predicted to produce 34.3 million tons of greenhouse gasses. The resources needed to negate that number would be the equivalent of over 209 billion gallons of water, 70,000+ square miles of forest, and over 500 square miles of land to house resources to produce power for data processing and transmission (Obringer, et al., 2021). 

But the good news is, while data center use is five times as great now as it was ten years ago, there’s been only a 6% increase in energy usage in that time (Masanet, 2020). Additionally, there are many steps those working from home can take to decrease their carbon footprint, making working from home more environmentally friendly than office work.

Video streaming consumes data at a vastly higher rate than voice only, so turning off the camera option for your weekly catch-up video conferences will save a lot of energy. Use recycled or reusable materials such as plates, cups, and dishes to help prevent deforestation – a critical factor in climate change. If you’re able, power household appliances with renewable resources, such as wind or solar (Bernstein, 2021).

Companies that allow working from home experience positive reputation boosts and increases in customer base

Today’s consumers are becoming more selective of where they spend their money. This is particularly true of the largest population group, millennials, those born between 1981 and 1996 (Statista Research Department, 2021).

Embracing remote work signals to consumers that you’re seeking to reduce your carbon footprint. In turn, this leads to environmentally conscious buyers becoming more aware of and loyal to your brand (Thompson, 2020). One study from 2017 shows that a whopping 88% of consumers in the United States would be more loyal to a company that openly supports environmental or social justice initiatives (Cone Communications, 2017). 

And this phenomenon is not limited to the US only. Nearly half of UK shoppers said they were willing to pay more for products made from recycled materials. Additionally, 59% said they would reconsider returning purchases if the environmental impact was more transparent (inRiver, 2019).

Xerox workers save 92 million miles of driving every year by working from home

Xerox started letting employees work from home over 35 years ago. Today, Xerox workers drive 92 million miles less than they would if they commuted to the office. This amount of driving would pump an extra 41,000 metric tons of carbon dioxide into the atmosphere and require a total of 4.6 million gallons of gasoline (Renolds, 2021).

All-in-all, allowing remote work options, Xerox saves over $10 million every year. In addition to the environmental and cost-saving benefits, Xerox’s vice president says that offering work from home options “help us reach and retain qualified and talented employees who play a key role in ensuring the well-being of all our stakeholders” (Onley, 2015).

Approximately 247 trillion sheets of paper are saved every year by working outside the office

Office workers waste a lot of paper. One estimate states that remote workers save 247 trillion sheets of paper every year—those who work from home use more digital documents, management systems, and e-signatures (Arun, 2021). 

We had to do some math to figure out what 247 trillion sheets of paper would look like. Two hundred forty-seven trillion pages would save nearly 16.5 trillion trees. In an average forest, this would equal almost 3 million acres or 4,678 square miles.

US commercial and industrial users experienced 6-7% drop in energy consumption

In the United States, the biggest consumer of energy is the industrial sector. The industrial sector comprises equipment and facilities that power agriculture, mining, construction, and manufacturing and consumes 32% of US energy. The commercial sector comes in fourth place for energy consumption at 18% and includes offices, schools, restaurants, warehouses, and malls. 

According to the Energy Policy Institute at the University of Chicago, between April and May of 2020, when working from home was at its highest, the US experienced a drop of 6-7% in energy consumption (EPIC, 2021), primarily due to a reduction in commercial and industrial power use (Citrix x Quartz Creative, 2020).

The energy consumption rate since the height of working from home has been rising but is still lower than pre-pandemic overall. The most current data from May 31st, 2021, shows an overall drop of 3.08%. Anecdotally, the two dates with the highest energy consumption were Independence Day, July 4th, 2020 (+5.45%), and Valentine’s day, February 14th, 2021 (+4.67%) (EPIC, 2021).

In the United States, there was a 67% decrease in waste production for businesses due to employees working from home.

The amount of waste that is produced by industrial and commercial businesses is hard to determine. Most corporations are not required to make those numbers available to the public. However, some estimates say the amount of garbage produced by these entities could be as high as 7.6 billion tons every year (Recover USA, 2017).

A private survey was conducted by The Environmental Research & Education Foundation and reported in Waste Advantage Magazine to get perspectives of individuals and entities that directly deal with waste management. Respondents were primarily waste haulers, consulting firms, municipalities, government agencies, and academic institutions. Their results showed a 67% decrease in waste production during the pandemic with the highest work from home rates (Waste 360, 2020).

The average worker reduces their carbon footprint by approximately 1,800 pounds by working from home. 

An employee at a fully remote company specializing in social media calculated how his company’s carbon footprint would change if they changed to an onsite location. The resulting figure for an office of 90 workers in California shows a 0.9 ton reduction of greenhouse gas emissions, equivalent to 1,800 pounds (Chen, 2020).

While it’s true that this is just one company, consider the fact that 98% of an on-site worker’s carbon footprint comes from a daily commute. Additionally, allowing employees to work from home 2.5 days per week produced electricity usage of 64 watts per hour, while the office used 130 watts per hour (Green Car Congress, 2008).

Between March and early June of 2020, the United States reduced its carbon dioxide emissions by approximately 15%

Transportation is the second-largest energy consumer in the US at 29% (Green Car Congress, 2008). When many USians were thrust into work from home models due to the global pandemic, fuel consumption for transportation fell by 30%. Due to the decreased demand for gasoline, sharp drop in commutes, and reduction of electricity usage, the US’s daily carbon dioxide emissions fell by an estimated 15% (Cruickshank, 2020).

New York employees gained back 15.2% of their time by not commuting

Before work from home models were widely adopted, workers in New York, NY, were spending a total of 46 hours per week getting to their job, working, then getting home. When the pandemic pushed many employees out of the office and onto their home computers, they ended up gaining back 15.2% of their time weekly. Nationally, the time gained back was 10.4% per week (CoPilot, 2020).

Regardless of a worker’s age, education, or income level, commuting to work can cause severe mental and physical health issues. Those workers with longer commutes are more likely to report recurrent pain, high cholesterol, be classified as obese, and suffer from low mood and excess worries than those with no commutes or those with a drive to work of fewer than 10 minutes (Crabtree, 2010).

Business travelers contribute approximately 50% to aviation emission

In 2020, the number of metric tons of carbon dioxide emissions from aviation was predicted to be 936 million. However, due to travel restrictions during the pandemic, the actual number was approximately 495 million metric tons (Mazareanu, 2021). 

The most significant amount of emissions are likely produced by only 1% of the world’s population – those that travel as part of their job. Flying in business class, first-class, or in a luxury suite increases a passenger’s carbon footprint by 5.3, 9.2, and 14.8 times, respectively (Gössling & Humpe, 2020).

Buying an existing home is more environmentally friendly than renting or building

The shift to remote work and the devaluation of urban amenities due to pandemic closures have prompted many USians to buy homes. Remote workers want more space for their home office and bigger yards for home-based activities. 

Many of these new homeowners are first-time buyers or older individuals buying a second home. This has put a strain on housing markets, as the buyers aren’t leaving behind homes that can be put back on the market (Demsas, 2021).

Despite the shortage of available homes, many remote workers are still ready to take the plunge and take advantage of record-low mortgage rates. So, is it better to rent, buy an existing house, or build your dream home?

Building a new home is by far the least earth-friendly option. Clearing land, harvesting and processing raw materials, and using heavy machinery for building are much harsher on the environment than simply buying or renting an existing structure. 

Whether it is better to buy or rent depends on the way you will be living. The carbon footprint could be lower than owning a home in a large rental complex with shared amenities (like pools and playgrounds) and modern, energy-efficient appliances.

However, when you own your own home, you can make decisions about things like energy and appliance choices. Having a modern, energy-efficient HVAC system and using solar energy to power your home would have less environmental impact than living in a large apartment complex without energy-efficient upgrades (Wild, 2017).

Conclusion

We hope you found this analysis of remote work’s impact on climate change valuable and engaging.

Our method and sources can be found here for those curious about how we came to these conclusions.

What are your thoughts on the ways working from home impacts the environment?

Please let us know by reaching out to us on Facebook, Twitter or contact us directly.

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