Effects of Working From Home Policies on Business Value

Effects of Working From Home Policies on Business Value

June 25, 2021

A work from home revolution is upon us. Businesses in both the private and public sector are coming out to confirm their long-term work from home (WFH) or hybrid policies. While the PR focus lies in employee empowerment, there are naturally considerable benefits for employers. With the likes of Deloitte, Apple, SAP, and more rising to meet the trend, there are also associated areas of concern that are causing others to force a return to the office. As valuation experts, the Netherside team has taken a deeper look into the impacts, both positive and negative, of a WFH policy on the value of a business.

Positive Impacts


Reduced fixed costs
Cost savings associated with WFH are attractive to both employees and employers. A WFH or Hybrid policy could allow your business to downsize on costly corporate real-estate, reducing liabilities significantly. However, be mindful of future growth; if it is likely that the business volume grows, so too will your need for operational space. 


More talent, new capabilities
The selection pool just got a whole lot bigger. The best talent of your country, if not the world, could be open to you. Competitive advantage for your business could mean expansion into new capabilities, achievable through recruitment. 


Improved staff retention
Goodbye to tiresome commutes. Homeworking can certainly offer better work-life balance to your employees, which could improve staff retention and moreover improve employee engagement. As productivity rises, so too does business output. However, it is important to be mindful of the needs of your entire staff.



Areas of Concern


Performance monitoring
In some instances, homeworking can make performance monitoring a challenge. If productivity suffers, and output is down, red flags are raised. Largely role-dependent, it is vital nonetheless that suitable processes are in place that enable your business to monitor and manage performance. 


Security risks
Global data protection rules need to be understood and adhered to more than ever with WFH policies. In Europe, the firm General Data Protection Regulations (GDPR) rules mean there could be more room for serious data breaches, that if discovered will lead to costly fines and reputational damage. 


Burnt-out and loneliness 
Working from home can make some feel unable to ‘switch off’ which leads to burnout. A result of homeworking is the loss of social interaction that is part and parcel of the workplace. This interaction is also vital for career development and training, according to JP Morgan CEO, Jamie Dimon. 



As economies around the world reopen, your business could soon face similar questions from employees. For a more detailed discussion on a tailored strategy that works for your business, and that maintains or helps grow its value, contact us here: info@nethersidecg.com

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