Even before the COVID-19 pandemic began, some big names in business began to embrace the benefits of a remote work model. Shrugging off geographical limitations to hire the most talented people—no matter where they live—was every hiring manager’s dream.

In every industry, the pandemic shifted the conversation about remote work. Many construction businesses needed to adopt new ways of coordinating their teams to keep jobs moving forward with safety in mind. With administrative staff sequestered in home offices, plenty of teams began to think the remote model could work for them, too.

Going back to the “old normal” seems unlikely. Still, experience has shown that a remote workforce can be a mixed bag for the employer. As finance professionals, we need to be especially aware of how remote work can change employment costs and risks.

These are some examples of topics we’ve been thinking about:

 ·      Robust digital solutions aren’t free.

Without the promise of technological innovations like video conferencing, no one would be talking about remote work. But as many of us have discovered, dodgy internet connections and underpowered home computers aren’t always up to the tasks required for a productive work-from-home environment.

Upgraded internet speeds and better laptops are just a light appetizer when compared to the network infrastructure costs that most companies will need to endure to support a permanent workforce. Keeping data secure is far more difficult with a distributed workforce. The answer is often a mix of software technologies and training, creating a recurring expense.

·      Risk management in the home office.

Permanent remote work raises the possibility that an employee will be injured while on the job at home. Injuries associated with bad ergonomics can lead to long-term claims, which drive up overall insurance costs. The best practice is to include home offices in the company’s safety policies for preparation regarding related expenses.

·      Compliance across several states.

California employers face high compliance costs at home, so they have special incentives to reach outside the state for candidates. But businesses must take care to account for hidden costs of hiring in another state. Distinct insurance rules, state tax obligations, business registration, and licensing requirements can make hiring an employee in a new state more expensive than one might first assume.

Financial professionals rarely are asked to give input on where a new hire is located. Instead, we need to be ready to react to hiring decisions. Forecasting the ancillary costs of potential out-of-state hires isn’t necessarily easy during the annual budgeting process, but it’s a good practice to avoid a bookkeeping scramble later.

·      Keeping the team together.

Anyone who worked through a big chunk of the last year out of a home office knows that chatting over Zoom is no substitute for face-to-face time with your colleagues. As they say, teams that eat together, stick together.

Budgets need to account for the necessity of regularly recurring gatherings. If the team is spread around a small area, this might not be a big deal. But as a business reaches further afield, it will need to factor in the cost of airfare and hotel stays. If a few employees staying at the Ritz Carlton could create resentment among the local employees, the budget might need to include putting up the whole team for a night or two.

Let’s share our lessons from the remote work experience.

What kinds of challenges has your business faced with the remote work model? If you’re facing hurdles, the chances are good that other CFMA members have encountered them, too. We invite you to start a conversation in the members forum. Let’s share the ideas that have worked to be more successful in the new remote-work paradigm.