Remote Work and Shifting the Costs

Back in 2001 I started working for Sun Microsystems, and worked for them several years in professional services and later as a software engineer. During my time there I traveled nearly every week and often found myself dropping in on various campuses for a day of work. Whether it was Santa Clara, Calif., Broomfield, Colo., or Burlington, Mass., I could drop in and pick a desk for the day. Sun provided “hot desking” or “hoteling” capabilities which simply meant they had a bank of workspaces that were not assigned to a specific person, but were available on-demand as needed with a first-come first-serve model. They determined they could save substantially on real estate and corresponding overhead costs by keeping large swaths of the campus flexible. Reportedly, a typical employer can save between $10,0001 and $11,0002 per year for every person who works remotely half of the time. Sun Microsystems saved $68 Million per year on real estate costs1 with this model.

As an employee, I loved the convenience. The culture encouraged working from home when it made sense and that benefit was enough for employees to get on board. Employees were going to save the time and gas money on the commute, wake up later, reduce child care costs by being closer for the after-school pickup … the benefits go on and on.

However, the expenses the employer saved didn’t disappear. The cost was shifted to the employee. Most employees were so happy to change up the work schedule and location, they simply assumed the trade off was worth it. Granted, we were well paid and could afford to make a bedroom into an office. The next time we looked for a home, we took the requirement of a home office into account. However this year, 2020, the acceleration to remote working has highlighted disparity; the privileged worker able to easily work from home compared to those that don’t have the space, services, or home life that afford the flexibility. Let’s consider the hard costs first.

Rent or mortgage: $1,343/mo.

Utilities: $199/mo.

Internet: $85/mo.

Rent or mortgage:

Utilities:

Internet:

$1,343/mo.

$199/mo.

$85/mo.

If we have a 2 bedroom, 900 sq ft apartment, and one 11 x 9 bedroom being used exclusively as an office, we can figure 10% of our total living expenses are being used for work and taken away from the purpose we originally intended. In this example, it costs the employee $162.70/mo. , which is less expense than the $833/mo. the employer is saving, but still a cost she didn’t have when going to the office. It is even worse if she didn’t pay for internet service before, and the only reason she is upgrading the package is for working from home. In that case the employee’s new monthly cost is even more.

What other impact does the employee have by working from home? Studies have shown there is increased conflict and interference with family because of work when working from home compared to working outside of the home3 and an increased level of stress working from home4 which is easy to visualize when you consider trying to work surrounded by children, barking dogs or other distractions. Working from home can also increase social isolation, a factor for increased depression5.

Can we achieve the benefits for the employer and employee without increasing the employee’s mental health and financial costs?

Employer

Reduce expenses including electricity, absenteeism, turnover.
Reduce liabilities like real estate, furniture, supplies.
Increase productivity
Save on janitorial services, coffee / water service, maintenance, security, paper goods, parking spaces, transit subsidies.

Employee

Achieve Work / Home balance
Shorten commute
Obtain more time with family / friends
Reduce distractions
Reduce stress
Avoid traffic
Save gas

Consider coworking facilities and how they are uniquely situated to address both employer and employee goals for remote work. Coworking facilities are shared office spaces designed for work efficiency that provide desks, ergonomic task chairs, excellent lighting, security, comfortable meeting spaces, and typical office amenities like coffee/water and high-speed internet for a low cost membership plan. Coworking facilities can usually be found closer to an employee’s home than the centralized corporate office and offer the same flexibility I experienced working for Sun, which is to say a lower cost plan typically includes hot desking where you can pop in on an as-needed basis. If the need is more consistent, most coworking spaces offer a dedicated desk plan so that a specific desk is reserved no matter when the member arrives. Another benefit of coworking spaces is they are populated with a greater diversity of individuals; employees from many different industries, entrepreneurs, creatives, and home-based business owners growing to the next level. Networking and learning opportunities within the coworking community can be more varied and valuable than those found in a siloed corporate environment.

Because coworking provides a designated place to get out of the house for working hours, it increases both quality work focus and quality family focus when work is done. Coworking enables opportunities for increased human interaction, and studies show that interactions even with barely acquaintances still have a positive impact on mental health6 . Coworking provides the professional work environment, ergonomics, and connectivity at a reduced individual cost by sharing the overall burden across many coworkers.

Coworking spaces can provide the cost savings and reduced liability employers are looking for with an increasingly remote workforce, while also saving the employee from increased family stress, social isolation, and financial burden introduced by shifting work away from the office.

Troy R. Lowe is a co-owner of Dugan Center, providing Central Illinois with a unique coworking space, event venue, meeting spaces, and dedicated business suites located in Lincoln, IL the perfect hub for surrounding communities in Peoria, Springfield, Bloomington, and Decatur.

Dugan Center

Remote Work and Shifting the Costs

Troy R. Lowe, Co-owner Dugan Center

Can we achieve the benefits for the employer and employee without increasing the employee’s mental health and financial costs?

References

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