Many companies during COVID had to make the switch to working remotely and creating a virtual workplace. While some businesses are lucky enough to be opening back up, others are still required to work from home. During this time, business owners can take advantage of reduced costs while employees aren’t required to head to the office. 

Reduce Monthly Overhead

For starters, when you’re working from home instead of an office you no longer have to pay typical expenses for a physical location. While most people cannot ditch their office entirely to avoid a lease payment, you can reduce the cost spent on certain utilities and services if you’re not using them. You also no longer have to by supplies for that office that you normally have to restock every month. If you’re in a position to break your office lease and won’t be needing it for the foreseeable future, that can greatly reduce your monthly overhead.

Employee Retention

Hiring new employees is a cost that most business owners don’t think of when operating a location. According to the Turnover Cost Calculator from the Corporate Leadership Council (CLC), mid-size organizations spend millions of dollars per year to replace departing employees with new recruits. Your best bet during this time is to be flexible and encourage a healthy working relationship with your remote employees. This can mean flexible meeting times, shorter working hours, and understand that working from home is a serious adjustment for some employees. 

Miscellaneous Expenses

When you’re not working in an office, you tend to spend less money on miscellaneous expenses. This can mean your morning coffee purchases, lunch for the teams, stocking the office supplies, and much more. By having everyone working from home, you’re reducing the various costs you incur every month. 

Are Virtual Workplaces the Future?

Many businesses are coming to realize there is no reason to return to an office to work. Virtual workplaces are going to be the new normal for certain industries that allow it. However, there is a lot that goes into deciding whether or not to stay at a virtual workplace. Consulting a Virtual CFO is your best option when making strategic decisions that affect your business revenue and productivity.