4 ms·

Where will the extra money come from ?

bomdo 7y ago
Saved real estate cost for one less desk at the office, productivity gains [1]. That said, companies that are fully remote (e.g. Gitlab [2]) tend to actually adjust your wage for having similar purchasing power wherever you choose to live. This then encourages the company to hire from inexpensive countries, which has it's own pros and cons. [1] https://www.forbes.com/sites/abdullahimuhammed/2019/05/21/heres-why-remote-workers-are-more-productive-than-in-house-teams/#5f64a93f6f9f https://www.forbes.com/sites/abdullahimuhammed/2019/05/21/he... [2] https://about.gitlab.com/handbook/people-operations/global-compensation/calculator/ https://about.gitlab.com/handbook/people-operations/global-c...
goatinaboat 7y ago
There are costs associated with working in an office - consider rent, cleaning, furniture, power, a receptionist, maybe an entire facilities management department, security and so on. These costs are split amongst the revenue earned per worker in that office. But homeworkers provide all those things for the company “for free”. And even more the homeworker might even provide the PC, the phone line, any tech support they need, all “for free” from the perspective of the company beancounters. In a fair world homeworkers would be paid this differential.
- tom_mellior 7y ago
  Both remote employers I've had so far have paid me a monthly lump sum for my internet connection (covering more than the actual costs). And I've always had a company PC. You're right about rent etc. though.
- reportgunner 7y ago
  Yes that is true. Except for the cases when workers already _start_ the job as remote. In such cases these costs are never created and therefore never avoided. You should also consider that the costs you've outlined are not paid "per headcount" but rather collectively for the company / per company site. This means that often the company would need to completely disimss the office location or move to a smaller location. I do not disagree with you, I'm just showing that money are not some magical points that you allocate with everything else falling into place.
buboard 7y ago
they save the company a ton

Saved real estate cost for one less desk at the office, productivity gains [1]. That said, companies that are fully remote (e.g. Gitlab [2]) tend to actually adjust your wage for having similar purchasing power wherever you choose to live. This then encourages the company to hire from inexpensive countries, which has it's own pros and cons. [1] https://www.forbes.com/sites/abdullahimuhammed/2019/05/21/heres-why-remote-workers-are-more-productive-than-in-house-teams/#5f64a93f6f9f https://www.forbes.com/sites/abdullahimuhammed/2019/05/21/he... [2] https://about.gitlab.com/handbook/people-operations/global-compensation/calculator/ https://about.gitlab.com/handbook/people-operations/global-c...

goatinaboat 7y ago

There are costs associated with working in an office - consider rent, cleaning, furniture, power, a receptionist, maybe an entire facilities management department, security and so on. These costs are split amongst the revenue earned per worker in that office. But homeworkers provide all those things for the company “for free”. And even more the homeworker might even provide the PC, the phone line, any tech support they need, all “for free” from the perspective of the company beancounters. In a fair world homeworkers would be paid this differential.

tom_mellior 7y ago
Both remote employers I've had so far have paid me a monthly lump sum for my internet connection (covering more than the actual costs). And I've always had a company PC. You're right about rent etc. though.
reportgunner 7y ago
Yes that is true. Except for the cases when workers already _start_ the job as remote. In such cases these costs are never created and therefore never avoided. You should also consider that the costs you've outlined are not paid "per headcount" but rather collectively for the company / per company site. This means that often the company would need to completely disimss the office location or move to a smaller location. I do not disagree with you, I'm just showing that money are not some magical points that you allocate with everything else falling into place.

buboard 7y ago

they save the company a ton