Office Vs Remote Working – Which Is Better For Profits?

The dramatic increase in remote working has raised many questions among both employers and employees. While some enjoy working from home, others struggle with the lack of structure. From a company’s point of view, however, the real demands of managing employees without a dedicated office space have been eye-opening. Many businesses are now sitting in a dilemma: how to maintain profits in the face of ongoing uncertainty. Fortunately, this might be easier than expected. 

Increased remote working

Research suggests that by 2025, the number of remote employees in the US will have grown by 87%. This means that over 22% of the workforce could be operating away from the office – a massive 36.2 million people. Such a societal upheaval has far-reaching consequences, both good and bad. Even setting aside the economic blow that COVID dealt industries globally, the abrupt shift to a more remote workforce has been a major adjustment. 

Productivity and profits

The productivity of remote workers has been (and still is) a topic of great interest. Experts are – divided: would work from home result in a lazy and undisciplined workforce? Initial research, however, has shown that remote employees are often more productive than their office-bound counterparts. 

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This finding suggests that the shift towards working from home could result in greater profits, although some pundits are still undecided. 

A breakdown

To get a clearer idea of the situation it can be helpful to go back to basics. In the simplest terms, money in minus money out equals profit. This equation doesn’t take into account the exceptional circumstances that have all but destroyed some industries (tourism, for example), but for companies whose finances have been less severely affected by COVID, comparing profits before and after introducing remote working can be an interesting exercise. 


A functioning business has numerous expenses, whether it is a small business, mid-market, or large enterprise. These include raw materials, equipment, insurance, marketing, bank fees, phone costs, office supplies, employee wages/salaries, and administration costs. Office rental costs depend on the type and size of the business. 

Remote savings for some

Transitioning to a more remote workforce obviously has an impact on these expenses. It differs case-by-case, but some companies have been able to cut costs quite dramatically – most markedly in terms of office rental. 

While many businesses have suffered due to the pandemic, others have discovered that allowing employees to work from home does not kill productivity, and actually saves a lot of money. Industries most hard-hit, like tourism and hospitality, have unfortunately not been able to sustain themselves due to a lack of revenue. 

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Looking to the future

It’s highly unlikely that the world will return to its pre-COVID state, which means that remote working, online shopping, and enjoying entertainment at River Belle casino is the new normal – not only for health concerns but because of the financial implications too. It will no doubt take time for businesses to iron out the kinks, but as time goes on, more and more data suggests that the current trend will be profitable in the long run. 

Johnny Thompson

Johnny Thompson is a senior reporter for Generator Research in Los Angeles, reporting on technology, business, finances, and more. He previously worked as a reporter for the Wall Street Journal and got his start at newspapers in New York, Connecticut, and Massachusetts.

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