Need of Employer or Need of Employee

Need of Employer or Need of Employee - Lucy, was surprised when her manager (of a large 5000+ employee IT and BPO company) has summoned her and have asked her to start working from home.

Working as a project manager with leading multinational, and a mother to a small baby of six months, Lucy was always looking for such opportunity. However she was afraid that asking her company work from home might result in slow career progression within the company.

Lucy's manager has informed her about new mandate by management where a certain percentage of employees have to be moved to this scheme and target is shared by all divisions. He also indicated that there will be no adverse effect on her career progression by opting for this.

She now works from home for 3-4 days a week, and attends office based on business needs - like meetings on remaining 1-2 days.

Another case in point is David, owner of a small HR recruitment firm, who is planning to close his physical office and have his complete team work virtually. He has been planning for this for now over three months.

They have moved to cloud based applications (technically known as Software as a Service - SaaS) from Google Apps for personal productivity software and have moved their core business to another online vendor of Applicant Tracking System.

For three months they have been doing a concurrent run and will soon move to work from home. David expects to save about 30% of his fixed costs and increased productivity of over 10%. for client meetings, visits and business address he has tied up with a leading business center in city.

There is a growing trend in companies to have a number of workers work from home OR telecommute OR web-commute. The reason why more and more employers are moving to work from home is primarily not to give flexibility to employee.

Flexibility to employees is just a secondary reason, primary being cost reduction due to saving the premium office space and more productivity during the time spent of traveling. Spiraling real estate cost has forced may companies to rethink on their policies of work from home.

To a great extent technology has also played a role in changing this mindset. More reliable and secure web based applications, secure private networks have helped in changing that mindset.

The business which are driven by people like service oriented business or IT and BPOs are traditionally manpower driven.

Increase in turnover has direct correlation to increase in turnover. In such scenario if a company can increase number of people without actually increasing number of seats physically, they are bound to gain a lot. We see a lot of companies sharing this trend in the coming days.

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