Working from home has become mainstream due to the unprecedented events of the last couple of years. What once was uncommon has now become, in some cases, a full-fledged home office workforce. Even the term “home office” has morphed from meaning a corporate headquarters to what was once called a spare bedroom. Whether it be at the dining room table, or in the spare bedroom converted into a makeshift office, the environment of where work is done has evolved.
Some companies have championed work from home all along while others fought against it sighting strict corporate policies and inequity as impossible hurdles to overcome. The pandemic has forced many corporations to hit the fast forward button and adopt work from home as the norm. Now, two years into the pandemic, the once makeshift offices have become full blown office spaces complete with adjustable standing desks, the newest smartphones for the latest apps, laptops, printers, copiers, scanners, charging cords, video cameras, green screens, fiber optic internet lines, routers, and multiple monitors.
How much energy does all of this cost and who is footing the bill?
At some companies, all aspects of communication are carried out remotely via messaging platforms and instructions delivered via video conferences. With this change, some expenses have shifted to employees.
One of these expenses is energy. The work from home employee incurs the costs of powering laptops, air conditioning, and internet bills. The workers personally spend more on these costs than those attending the workplace in person.
How Much Energy Is Needed to Power a Home Office?
The amount of energy required at a home office often depends on the equipment a work-from-home employee must have in order to do their jobs. The power rating on each laptop, printer, scanner, etc. determines the total amount of energy needed. On average, most work-from-home employees use a laptop or a desktop computer and some lights when working from home. A laptop has a power rating of 50-60 watts, while a desktop uses between 100-125 watts. A monitor uses about 30-50 watts, meaning the more you have, the higher the energy consumption.
The cost of electric and natural gas expenses depends on the season, the number of hours the equipment is on, and the location. For instance, the electrical cost of charging a laptop for eight hours a day is about $3 on average, monthly. Since desktops use more energy, their monthly average electricity cost is about $5. Powering the computer equipment of a home office will cost about $15 on average per month.
You can charge your phone, tablet, and laptop for a whole year for about $180 per year. That amount is far less than putting gas in the car or purchasing a bus pass to commute to a conventional workplace.
Additionally, heating and cooling use the most energy. When working from home, employees need a comfortable environment, not extremely high or low temperatures. The cost of natural gas depends on how long you leave the HVAC system on. Heating the home office using natural gas is relatively cheaper than using electricity in most locations. The cost to heat or cool your home office is about another $180 on average.
For tips to create an energy-efficient home office
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Should employers pay for work from home costs?
Prior to 2020, most businesses did not pay employees expenses when workers choose to work from home. Now, many companies are changing their policies to include some reimbursement in order to retain their workforce. This can vary based on the company and the location. For instance, in California, employers may even be required to pay a portion of their remote workers utilities.
In the last year work-from-home employees have seen their energy utility bills increase by $40-50 monthly, translating to about $600 per year. During the pandemic period, energy utility companies in California reported an increase of 15-20% in residential electricity use. The researchers at Columbia found that residents in New York use 4-7% more in electricity costs.
Overall, it was found that consumers are paying average $250 more for electricity this year and residential energy consumption is up 10%. This is a concern for many companies, especially those working towards sustainability goals.
As a business owner it is important to review your current company policies and see if changes or updates need to be made in order to more accurately reflect current circumstances. Check the regulations for your location and your industry to stay compliant. Even if your state does not mandate reimbursement, experts recommend offering some type of reimbursement policy because it helps build loyalty and morale among your employees. For example, the average laptop lasts 3-5 years. If employees have been working from home for two years, it may be time for a new laptop soon. Who doesn’t love that new laptop smell?
If is also important to know your employees. Can they afford the increase in home expenses? Are their homes conducive to a work at home environment? Many people are fighting loneliness and depression during these unprecedented times. How can your company engage employees working from home in a positive and interactive manner? It is equally important to care for one’s mental health as one’s physical health, especially during a pandemic.
How Do Businesses Benefit from A Work-From-Home Workforce?
Both businesses and employees can benefit from working from home. When employees work from home, the employer saves money on some expenses related to onsite business operations. These include expenses like office space, travel, and equipment. According to Global Workspace Analytics estimates, a business can save about $11,000 annually on every remote worker commuting just 50% of the time. Depending on the company size, these could be significant savings with no change in the company structure. Additional savings include real estate, absenteeism, productivity, janitorial services, security, maintenance, paper goods, coffee and water services, parking, transit, equipment, furniture, and office supplies.
Indeed.com cites16 Benefits of Work from Home for Employers and Employees
- streamlined communication
- higher productivity
- improved work-life balance
- larger talent pool
- lower turnover rates
- increase job satisfaction
- reduced overhead costs
- more time saved
- better brand reputation
- global insights
- fewer sick days
- improved inclusivity
- more freedom
- more diversity
- longer business days
- more sustainability
Working from home increases productivity. Remote workers tend to be more productive than those attending their workplaces in person. Remote workers have greater autonomy, reduced distractions in the workplace, and freedom to work during their most productive hours. Other benefits to the employer include improved disaster preparedness, employee satisfaction and retention, and reduced carbon footprint.
Are We Saving the Environment by Not Driving Back And Forth Commuting To Offices?
By not driving to work and back, we help save the environment. Vehicular emissions are currently among the leading air pollutants, especially in cities where most workplaces are concentrated. Hello, Los Angeles! A reduction in these emissions is good for the environment. Fortunately, many vehicles are and will be increasingly powered by alternative energy sources like electric power. Soon, most of the vehicles on the road will be environmentally friendly and not use gas.
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However, “working from home is not as green as everyone would think,” according to researcher Steve Cicala at Tuffs University. While commuting is down, it requires more energy to heat and cool individual homes during the day than to adjust the climate on a single office.
By holding conferences virtually, companies also save money. Because the attendees will be at their homes, the business does not incur mileage, food, and flight reimbursement costs. The employer does not incur accommodation costs like hotels and transportation. The money can be put to other productive use. Therefore, virtual conferences are better for the company financially and environmentally compared to in-person conferences. As we shift from in person handshakes to virtual conversations, we learn to adapt to the changing world and showcase our company’s strengths through a different medium.
Has The Pandemic Pushed Working from Home into the Mainstream Business Culture?
After the COVID outbreak, governments worldwide instituted measures to “break the chain”, “flatten the curve”, “stop the spread” of the virus. Lockdowns were announced in various countries, curtailing production. In many cases, where it was possible to do so, employees started working from home to ensure the survival of the business.
Since the work from home model provides less expensive and, in some cases, better results, some companies, especially in the technology industry, have started adopting it full time. The pandemic has made working from home an acceptable and thriving business culture.
Conclusion
The pandemic has changed every aspect of our lives. Working from home saves energy and pushes us closer to implementing additional energy conservation measures. Each company is different, just as each employee is different. Now is the time to review the company handbook, update policies, and carve out a new vision of the future workspace.
Do you agree?
Let us know by using the Contact Us form below. We would love to hear more about your workplace. As we work through these challenging times, it is important to identify resources that can help you. Let’s explore some of your options.
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