Several days ago someone on Twitter asked for ideas of how to save money running a business without making any cuts to human resources. I wanted to provide some of my own thoughts but found that 140 characters was just not enough to communicate my ideas. I asked for an e-mail address and sent the following thoughts:
I don’t have any experience as a 100% telecommuter, nor am I aware of any companies using this type of model. Depending on the type of business, I think this can be a sustainable model.
PROS
- Reduces overhead costs of maintaining a physical office
- Reduces employees’ carbon footprint by nearly eliminating commuting
- Increases net pay by nearly eliminating commuting expense. Can also reduce childcare expenses.
- Tax deductions for in-home business expenses
CONS
- Limited in-person contact among employees
- Company HQ should be easily accessible and in a city with available meeting places
- Limited employee supervision
- Delayed reaction to corporate “fires”
As technology advances, the need for in-person meetings may disappear. Using a service such as WebEx, OmniPresence or other remote communication tools can minimize the disadvantages of remote meetings.
If I were an employee 100% telecommuting, I would see these benefits:
- Ability to live wherever I desired
- No longer need two family vehicles
- Save on childcare expenses
- Tax benefits of business write-off for portions of home internet and telephone connections
- Casual wardrobe (another $ savings!)
I’m sure there’s much more to this than I’ve captured, but I truly believe virtual offices are the way to go. I’ve found that high-performing teams are staffed with people who maintain a great work-life balance. This is certainly one way to do it. I know I’d move to Florida in a heartbeat if my work location was out of my home and there were no restrictions on where that home could be. If the deal were good enough, I’d probably even pay my own travel expenses for the rare occasions meetings at HQ were mandatory.
What about you? Have you found any other benefits of telecommuting? What other ways have you cut business expenses without cutting your human resources?
