Whether you are an employer who wants to consider letting employees work from home, or a person who want to start a home-based business, you must consider the good and the bad.
In this article we cover the good and the bad of employees working from home and of self-employed home-based businesses.
Employees working from Home
Although the notion of having employees work from home is not new, many employers have not given this much serious thought in the past. That was until the worldwide pandemic forced many companies to scramble to have employees work from home.
In many instances, with surprising results.
This forced companies in various business sectors to realize that the advances in technology has made it much easier to have people work from home than they had previously thought.
Although the productivity of employees working from home was a point of concern, many companies found that employees were as productive as before, or even more productive while working from home.
An increased number of companies are now considering having employees work from home, either full time, or part of the time.
The Good
Reduced cost
Employers can reduce expenses when less floor space, parking space and various other office necessities are needed for employees, who would otherwise be coming into the office every day. This must be weighed up against a possible increased cost for communication, if the employee will need a mobile phone and a data connection, when working from home.
Employees have reduced expenses by not having to commute to the office every day. Working from home can also bring about a saving in what is needed to be spent on items like clothing, makeup, and lunch.
If an employee can work from home full time, living expenses can also be reduced. The distance and commute to work no longer needs to be one of the main factors in deciding where to live. Living space that are further away from major metropolitan areas tend to cost less.
Reduce employee stress brought on by daily commute.
The various factors associated with the commute to and from work, can lead to elevated stress levels, especially if this is done during rush hour.
The time saved by not having to commute to and from work, also means that the employee can use this time better for family time, or for work.
By not having to commute every day, stress can be reduced. This reduction in stress can promote a more positive attitude in employees, which often translate as a benefit to the employer, when employees have a better sense of well-being and a more positive attitude.
Improved productivity
As mentioned before, many companies have found that employees who worked from home were generally more productive.
The reason for this could be attributed to the fact that work from home generally have a more positive attitude towards their work. This could be attributed to lower stress levels and more time.
A home environment often has lower noise levels and less non work-related interaction with colleagues.
Improvement in employee retention
The benefits to the employees who work from home like reduced cost and a better sense of well-being promote a higher sense of contempt. This makes is less likely that employees will feel the need to change jobs.
Location Independence
If the job requirement allows the employee to work from home full time, then that eliminates the need to be located close to the office. This allows the employer and the employee more flexibility regarding location.
Employers can select candidates from a wider geographical location. In some cased people from other countries and even other continents can now be employed. This provides the employer with a much larger selection of candidates to choose from.
Positive Environmental Impact
If more people can work from home, greenhouse gas emissions can be reduced substantially.
This can greatly contribute to an improved environment and the well-being of nature and humankind.
The Bad
Communication cost
When employees are working in different location, it can often lead to an increase in communication cost.
This could include expenses such as mobile phones, data, additional software, and software subscription fees.
These additional expenses must be weighed up against the savings like the reduced need for floor space and other office expenses.
Data Security risk
When employees who work from home need access to data and company networks, remote access will need to be granted. This may lead to a security risk, as it could leave the data more vulnerable to hackers and malware to infiltrate the network. Additional security measures, like a Virtual Private Network may have to be introduced.
Difficulty monitoring performance
Monitoring performance remotely, may be challenging. As with any work environment, the personalities off employees vary greatly. Certain personality types require more supervision that others.
Ways to monitor performance will vary, depending on the nature of the business and the tasks that need to be performed.
In an office environment, employees generally feel that somebody will see if they are not putting in a full day’s work. Some employees may find time management and prioritization more difficult than others.
Lack of personal interaction
Some job types and personality types require more personal interaction.
It may be more difficult to maintain a team spirit and some employees may start to feel isolated.
For this reason, some businesses may opt to rather have employees work from home some days and from the office on other days.
Starting a Home Based Business
There are various reasons why a person would want to start a home-based business. Regardless of the reason, one must consider the good and the bad before starting.
The Good
Choice of work
Choosing to start a business where you can work from home, provides the opportunity to choose the type of business that you want to start.
This can be based on what one enjoys too do and on strengths and weaknesses.
Choosing something that you enjoy or are passionate about helps to keep you motivated.
Keep in mind that research is still required, so make sure that what you would like to do does have the potential to be a viable business.
No daily rush-hour commute
A daily commute to and from work take up valuable time, but it can also be costly and stressful. By Working from home this time could be put to better use with the family, or to get work done.
Flexible working hours
There is more flexibility to prioritize work time and personal time. Being able to better balance work time and family time can bring and improved sense of well-being, not only for yourself, but for your family as well.
Cost saving
Working from home could bring about various savings. By not having to commute to work everyday can bring about a substantial saving. There could also a saving in lunch expenses and even clothing. Running a business from home could also have the advantage of sharing home and business expenses. E.g. Data cost.
There could also be tax benefits, depending on the country that you live in and their business and Tax laws.
Option to customize your work environment
If you are your own boss in your home, you can create a work environment to suit your needs and your personal preferences.
No office distractions
Things like noise levels and annoying colleagues in an office environment can be very distracting. Less people around reduce the level of possible distractions. Less distractions can result in getting more work done in less time.
Scalable income
In the beginning you will have to decide how much money you can spend and how big you can start.
An important decision will also be whether to start part time, or full time. It is advisable, depending on the circumstance and type of business, to start it as a part time business. One will then be able to grow the business until it is profitable enough to turn it into a full time business. This will greatly reduce the initial risk.
As the business becomes more successful, there will be times when decisions will have to be made regarding growth.
Should I employ staff? Should I outsource some of the work?
Deciding on things like this means that you will have choices about scaling your business. You could decide to keep it small, or you could decide to take steps to grow the business further and by how much.
The Bad
Willpower and self-discipline
Being at home with nobody manage you means that you must manage your own time and productivity. Some people find it more difficult than others to manage their time effectively.
This can be particularly challenging, especially in the beginning. Things will not always go the way that you envisaged them, so be prepared to stay self-motivated during the ups and downs. Although your time will be more flexible, you will have to set certain routines and time management strategies for yourself.
An example of this is getting up in the mornings. It is much easier to stay in bed a bit longer if you know that you do not have a boss to face for being late to work. Be that boss. Be strict with yourself and get working.
Also keep in mind that being your own boss and running your own successful business may require you to spend more time working than you may think.
Sense of being disconnected from other people
Working from home can start to feel very lonely after a while. This affect different people in different ways. Be prepared for this. Take your personality type into consideration when you decide what type of work you would like to do from home.
If you are an extrovert and a people’s person you may want to consider something with more human interaction. If you are an introvert, you may be perfectly happy if you choose something that require little, or no human interaction.
Lack of skills and experience
In office environments, there are generally different tasks and specialties that are assigned to different people. If you start your own business for the first time, there are bound to be some things that you will have little or no experience in.
Identify and learn these skills as soon as possible. Consider that some of these skills may take time and money to learn. Also consider that some skills require experience and could take some time to master.
Some things can only be learned by trial and error.
Beware of scammers and get rich quick schemes. Issues with payment and logistics.
