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A. Lower Rent Cost
Commercial rental space continues to get more expensive each day. When companies want to start up or expand, real estate is one of the first considerations. With most or all employees telecommuting, real estate expenses, a major expense for most companies, can be reduced or kept at a minimum.
B. Lower Benefits Costs
Since it is possible and even usual, most contract workers are employed as independent contractors, responsible for establishing their own benefits plant. They can subscribe to group health and life insurance plans and construct their own retirement plan. This takes a tremendous load off of the employer. Employee relocation allowances born presently by the employer are eliminated in telework. Office parties and other non-work activity no longer have to be an expense borne even partially by the employer. There are no workers compensation claims associated with contract teleworkers.
C. Administrative Expenses and Employee Relations
Expensive record keeping required by all too numerous government agencies is greatly reduced, telecommuting. Not only does and employer not have to pay for benefits, but do they have to pay the cost to administer them. The personnel and other support services offices can be reduced in size and scope.
D. Discrimination and Sexual Harassment
Illegal employment discrimination becomes less of an employer’s concern. The chance of discrimination because of race, color, creed, sex, age, physical disability or national origin is certainly minimized when no on can determine those non merit factors when dealing with an employee. Of course, sexual harassment will diminish with employees working remotely from other employees and supervisors.
Employers will benefit substantially from the independent contractor status of their workforce in reductions if force. Independent contractors will not be entitled to unemployment insurance and contracts can be terminated at the will of the employer, without the necessity to provide the contractor a reason. This is of great appeal to the employer. As a former professional personnel manager, I know that most employers in the U.S. are afraid to terminate an employee. They know of the possible lawsuits and grievances that will more than likely result, even in cases where there is little doubt that the employee should be terminated. Although telework looks like safe haven if not a paradise for the employer, it provides many incentives to the employee too. And the haven may not be bullet proof.
C. Increased Employee Productivity
Numerous studies prove that employees produce more when working at home. It is important that the employers structure the work so it can be measured and only pay for what they get. Self motivated employees succeed. Others will fail.