Can Remote Workforces Offset COVID-19 Business Losses?

The COVID-19 pandemic prompted many businesses to push forward with remote workforces in an effort to buoy potential losses. Although many perceived telecommuting as something of a futuristic way of operating an organization, CFOs may want to make work-from-home standard operating procedure going forward. 

James Forbis, with Cincinnati IT consulting firm 4BIS.COM, states “CFOs are largely looking at remote working solutions because savings from this strategy could help companies recover losses suffered during the economic downturn.”

Research Points to Remote Workforce Savings

A recent Gartner study conducted at the end of March indicates that upwards of 74 percent of 317 CFOs polled expect to keep a minimum of 5 percent in off-site positions once the pandemic subsides.

“This data is an example of the lasting impact the current coronavirus crisis will have on the way companies do business,” Gartner Finance Practice researcher Alexander Bant reportedly said. “CFOs, already under pressure to tightly manage costs, clearly sense an opportunity to realize the cost benefits of a remote workforce. In fact, nearly a quarter of respondents said they would move at least 20 percent of their on-site employees to permanent remote positions.”

According to a Forbes article that analyzed remote workforce data from wide-reaching sources such as Owl Labs, Gallup, Harvard University, Global Workplace Analytics, and Stanford University, among others, five distinct cost-saving categories emerged. These are the conclusions reached by culling data together.

• Productivity: Teleworkers were considered 35-40 percent more productive than on-site employees

• Performance: Autonomy empowerment resulted in 40 percent fewer quality control issues

• Engagement: Remote workers registered a 41-percent lower rate of absenteeism than on-site counterparts

• Retention: Upwards of 54 percent of the workforce indicated they would change jobs for increased flexibility versus a 12 percent turnover rate among remote workers

• Increased Profitability: Organizations anticipate an $11,000 savings annually for each part-time remote worker, which equals roughly a 21 percent net gain on average

“Most CFOs recognize that technology and society has evolved to make remote work more viable for a wider variety of positions than ever before,” Bant reportedly said. “Within the finance function itself, 90 percent of CFOs previously reported to us that they expect minimal disruptions to their accounting close process, with almost all activities able to be executed off-site.”

From the employee’s perspective, work-from-home flexibility tallies up to more than mere convenience. Studies conducted by online employment platforms such as Flex Jobs indicate that workers save approximately $4,000 in commuter costs annually.

Remote Workforces May Be A Post-COVID Necessity

The economic reality of organizations that were able to seamlessly reposition themselves with work-from-home productivity is that massive business closures drove revenues down in many instances. For too many industry leaders, the quick pivot was a necessity to simply stay afloat. CFOs have already been tasked with making deep budgetary cuts. The Gartner CFO poll highlights almost Draconian cuts.

• Approximately 60 percent of CFOs canceled leadership events and other company gatherings

• An estimated 58 percent have implemented a hiring freeze

• More than half have frozen travel expenses going forward

• Nearly 50 percent have put capital expenditures on indefinite hold

According to Gartner, CFOs are managing coronavirus-driven debt, credit lines, and are drilling down on seller metrics as a guideline for ongoing budget cuts.

Long before the pandemic caused massive business disruption, remote workforces were trending as the “new normal.” Post-coronavirus hardships have turned work-from-home employees into the “new necessity.