Is remote working actually pumping lifeblood into a struggling economy? Economists, business leaders, managers, and workers alike viewed remote working with significant reservations. The primary ones concerning practicality and performance. At any other point in modern history, these concerns would have been vastly justified. But not in this decade.
This is thanks to massive infrastructure expansion and market penetration efforts by Cox cable and similar large-scale internet providers. At the same time, the prevalence and acceptance of cloud technology in the workplace was a barrier we had already crossed. These unique conditions offer alternatives to conventional work. And these alternatives are luckily exactly what the economy needed to survive.
5 Ways the Economy is Improving Thanks to Remote Working
The COVID-19 pandemic has certainly devastated the global economy and leveled entire industries. That’s not to mention the unprecedented death toll and lasting health impacts, as well as the strain on national healthcare systems. However, despite the very real tragedy, it hasn’t led to the total economic collapse many predicted was just around the corner. On the contrary, the shift towards remote working and adopting cloud-accessible technology may actually be causing an upward cycle in the previously depressed economy. Here are 5 key ways this is happening as you read this:
Significant Increase in Worker Productivity
The primary concern most businesses had was about worker productivity when working remotely. Many rigid workplaces conventionally frown on remote working. Even those that offer remote working usually only allow it as earned privileges. However, remote working during the COVID-19 pandemic has proven these concerns baseless and outdated.
Modern online tools and platforms enhanced collaborative ability. This increased the efficiency of many workflows far above the usual levels. At least, above those seen in a conventional office, anyway. As employees grow more familiar with the technology they use for remote work, it has an impact on how they work. Their productive efficiency only continues to grow. In fact, many employers report improvements in attendance levels, manager engagement, communication, and working capacity during remote work.
More Opportunities to Relocate Appearing
Proximity to their place of business has always dictated people’s place of residence. This is one of the reasons people choose to live in crowded urban centers like New York, San Francisco, or Philadelphia. The best corporations and brands are usually located in business districts. These are usually located in areas with intense commercial activity. And as a result, the people who work for them have to locate themselves nearby. Of course, the problem is that the living costs in many of these urban centers are significant. Most register higher costs than in other parts of the country. Increased costs and taxes inevitably eat into income and earnings.
However, remote work has turned the situation around. There is no need to waste energy on long commutes or money on expensive utilities. Workers have more time and effort available to dedicate to their jobs. At the same time, there is no need to be in proximity to their workplace. Therefore, workers can now freely relocate to suburbs or areas with lower taxes and costs.
Opening Up Access to International Talent
It’s not just local employees that benefit from conventional workplaces becoming redundant. Employers see significant advantages as well. With no need to be physically present on-premises, businesses can expand the scope of their hiring priorities. Conventional recruiters look for the best candidate among the local talent pool. But now, they can access world-class candidates from anywhere in the world. With the appropriate work hours and scheduling, businesses can hire better workforces. They can create a more diverse pool of skilled workers. Using the same remote working tools and software, these workers may be able to integrate better with the rest of the workforce.
Increased Savings and Reduced Costs
Another huge advantage to businesses is the money they save as a result of a drop in costs. The conventional workplace has several fixed and variable expenditures. Many are related to the workplace as a whole. These include rent, utilities, fixtures, fittings, bills, and equipment. However, businesses have a major chunk of their workforces operating remotely. Therefore, these costs are redundant. In many cases, this represents sizeable savings to a business. This money can be redirected into improving the remote working model. You may even find ways to tweak it for even better performance. This multiplies the impact not just on business profitability, but also on the tech economy.
Increased Reliance on Independent/Freelance Workers
Finally, we discuss an important remote working advantage to businesses: hybrid workforce formats. This refers to a shift in how workforces are configured. Conventionally, businesses have had to hire contractual, contract-to-hire, or permanent workers. Temp workers are also a significant subcategory in the US workforce. There were few other practical ways to fill talent gaps.
However, businesses are instead opting to work with freelancers, consultants, and other independent workers during the pandemic. The workforces of 2021 are a hybrid of full-time and part-time employees. They also consist of freelance contractors or consultants. Many are brought on for specific tasks or projects. This diversity in work modes allows businesses to be more flexible. Both in their approach to hiring and to achieving their business goals.