Over the next five years, $8 trillion in value gains will be realized by companies migrating to a modern and distributed workforce.
Globally, a viable work from home population exists within eight regions, the United States, the United Kingdom, Australia, Germany, France, Spain, Italy, and higher-earning portions of ASIAPAC.
A few common and specific traits make these regions strong candidates for work from home, such as high personal and corporate income level, availability of infrastructure, the level of economic development, and a cultural openness to remote work.
Collectively, these eight viable geographies have a population of one billion. The working populace consists of 400 million people, and of those, 160 million will be permanent work from home.
Not only does this translate to a massive talent pool of remote workers, it’s also a major economic benefit to organizations interested in adopting a modern workforce.
Each remote worker saves their employer an average of $10,000 a year on workspace and related expenses. And these benefits are realized by employees as well, who can save between $2,500 and $4,000 a year spending part of the week working from home.
Twitter, Facebook, Slack, Shopify, and more have already announced long-term plans for permanent work from home. Shopify has permanent plans for employees to be remote-only and intend to rework office spaces to reflect this change.
Reducing the importance of a centralized location makes it easier for companies and organizations to re-allocate operational budgets to other areas. Gartner found that 22% of companies have either made or are planning to make cuts to real estate expenses in coming months as a response to work from home. Moody’s Analytics is already forecasting 20% vacancies for commercial real estate by 2022.
But the economic benefits are not just in rent, utility, and maintenance. Companies with remote work already see 25% lower employee turnover, lower payroll expenses, and higher productivity.
Across 160 million remote workers, these savings translate to $1.6 trillion in annual value creation. Over five years, that’s $8 trillion.
Chief Strategy Officer, ASSIA, Inc.
Tuncay is responsible for formulating future product lines, business partnerships, and corporate development activities. Previously, he served at ASSIA as SVP Product Management, and conceived CloudCheck® – the cloud and mobile business of the company. Prior to ASSIA, Tuncay built the product management and product marketing teams at AirTies networks as VP Product Management to support large scale expansion into the European Service Provider market. Before AirTies, Tuncay worked at large publicly traded companies and venture backed start-ups in engineering, product development, marketing and general management roles in Silicon Valley. Tuncay holds BS degree in Physics from Turkey’s top engineering school Bilkent and an MBA from Yale University, where he was awarded John M. Olin Fellowship in Telecommunications Research.