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Increasing the percentage of remote workforce can contribute to cost savings in several ways. Firstly, it can reduce overhead costs such as office space, utilities, and maintenance. Secondly, it can decrease commuting and relocation expenses for employees. Thirdly, it can potentially increase productivity as employees often report higher levels of job satisfaction when working remotely. Lastly, it can widen the talent pool, allowing companies to hire from anywhere, potentially reducing salary costs.
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What are the best methods to manage your talent pool at all times? Use this Workforce Planning presentation to align human resources with evolving mar...
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The other part of cost analyses is comparing different cost saving options. Cost savings can come in different forms. For example, despite recent pushbacks from some CEOs, a company might still find that increasing the percentage of remote workforce can generate the greatest cost savings. Another common cost saving strategy is downsizing, or some companies like to use the euphemism "reorganization". In that case, it would be worth calculating what part of the workforce should be reduced without compromising the quality of work. Is it frontline workers, or would it be first-level and second-level supervisors?
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