Tag: benefits of remote working

Impact of rising living costs on SMEs

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SME business owners are going through it this year. 

They’ve been hit with various economic factors fueled by the pandemic and the ongoing conflict between Russia and Ukraine. This is leaving a steady trail of small businesses closing down as the pressures they face become insurmountable. 

So exactly what pressures are businesses facing and how can they stay afloat throughout a storm that appears to have no end in sight? We’ve pulled together a few tips for SMEs:

 

Rise of living costs:

Inflation is forecasted to peak at 13% in Q4 2022 and was at its highest rate since 1982 this July at 10.1% [1]. The soar in living costs has various impacts on SMEs:

  • Decrease in consumption, especially of non-essential products/services 
  • Raises in price of products/services heightens competition possibly leading to lowered customer retention 
  • Overhead expenses to be cut eg. lowered budgets for marketing etc
  • Pressure for increasing employee salaries 

SMEs will need to internally audit and re-calculate their operations and budgets to tackle this. You’d be surprised how many unexpected costs could be cut down with simple solutions. An example of this is telecommunications costs. 

Many businesses still operate their customer support via traditional landline phone systems requiring contracts with carriers. As these contracts come to an end and with inflation at an all-time high, SMEs are faced with big telecommunications bills for the coming years. To cut down on these costs, switching to a VoIP phone system like Devyce will be beneficial.

Devyce is a hybrid phone system that provides two numbers on your phone. This means businesses won’t need to invest in physical landlines or providing handsets to employees while still operating with a reliable phone system. 

 

Energy crisis:

The price cap of energy costs is set to increase to 80% in October 2022 resulting in an increase of roughly £1600 per year for “typical” consumption levels of energy per household [2]. What does this mean for SMEs?

  • Providers are removing lower cost tariffs 
  • Pressure to reduce essential costs to accommodate which have negative long term effects 
  • Closures of physical locations 

Ways to overcome the spike in energy costs is to invest in sustainability and adopt greener practices. For example, with an abundance of reliable communications tools available such as Devyce, many businesses could look into adopting remote working models to cut down on use of office space. This saves businesses money, reduces impact on the environment due to reduced commuting of employees and use of energy at offices. 

For more sustainable solutions that could save your business on massive energy costs, check out our blog post:

Five unexpected ways businesses can be more sustainable 

Supply chain issues:

The supply chain problem is a cycle of poor management of logistics both internally and externally for businesses. The challenges with supply chain logistics are partly due to less staff resulting from the pandemic and is expected to continue into 2023 [3].

 

This has resulted in:

  • 79% of SMEs facing increased prices from suppliers over the past 6 months [4]
  • Major delays in exporting of goods leading to long wait times for customers to receive goods, affecting customer experience
  • Exacerbation of inflation leading to increased competition between businesses

What SMEs could do to minimise the effect is firstly to internally audit their processes eg. stock intake and maintenance etc. By optimising these processes, SMEs can mitigate the supply chain challenge by ensuring they can plan well for stock replenishment. Business owners could also look into working with more local suppliers which are more likely to be able to deliver with minimal disruptions. 

The past couple of years have undoubtedly been tough on small businesses. The differences between businesses that are able to continue trading and those that are forced to close are flexible businesses making necessary adaptations to face the piling challenges. Make a smart business decision and find out more about how Devyce could help you cut costs and tackle these challenges here:

References:

[1] https://commonslibrary.parliament.uk/research-briefings/cbp-9428/

[2] https://commonslibrary.parliament.uk/research-briefings/cbp-9491/#:~:text=The%20energy%20price%20cap%20increased,consumption%20paid%20by%20direct%20debit.

[3] https://www.resilinc.com/in-the-news/supply-chain-delays-will-spread-well-into-2022-and-possibly-2023/#:~:text=Supply%20Chain%20Delays%20Will%20Spread%20Well%20Into%202022%20and%20Possibly%202023,-Sep%2002%2C%202021&text=According%20to%20an%20analysis%20by,the%20overstrain%20in%20transportation%20systems.

[4]https://startups.co.uk/news/supply-chain-inflation-uk-smes/

A Guide To Remote Working: Its Benefits And Disadvantages

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What is remote working?

Remote working is a relatively new concept to many of us, a new working model introduced because of the pandemic. Remote working is essentially working from anywhere but your office, for most people, at home. Working at home has become the new normal for many people during the rises and falls of COVID-19, to keep themselves, and others, safe. However, the results of working at home seem to be having such a positive impact on employers and employees, that perhaps it is here to stay. 

A report by CIPD, in 2021, revealed that employers are so pleased with the results of remote working that 63% plan on increasing flexible working to as many employees as possible. Accenture supported this find, reporting that 63% of companies are planning to keep a “productivity anywhere” work model, even after the pandemic. 

Ladders, a job search site, projected that 25% of jobs will be remote by the end of 2022, and continue into 2023, in the US. The amount of remote work available before the pandemic was about 4%, but has now increased to over 15% in 2022.

How To Work Remotely

Taking the leap to decide to work remotely is an easy one, but may seem a bit daunting at first. You may be wondering, can I work remotely full time without sacrificing my work/life balance or mental health? 

Successful remote working may take some time to get used to, but productivity working at home can be easy once you set up boundaries, routines and a work space. Any area or corner of your house can be transformed into an ‘office’ space, not only to help you focus when at home, but also to help separate your personal and work spaces under one roof. Routines can also help, for example, waking up at the same time, assigning time to get out the house, even just for a 10 minute walk, can keep your mind healthy and productivity high. Lastly, healthy boundaries are important when navigating how to work remotely, not working over time just because you are not physically leaving an office, for example. Making social plans or having a set thing to do to ‘clock out’ of work mode to reinforce boundaries while remote working in order to maintain a healthy work life balance. 

Remote working has proven to not only increase productivity among remote workers, but also been beneficial for their mental health; some even willing to take a pay cut to be able to continue working at home. 

Owl Labs reported, in their 2021 State of Remote Work Report, that 90% out of 2,050 full-time remote workers were as or more productive when working from home, 74% saw their mental health improve and 84% claimed they would be happier continuing to work remotely after the pandemic. 

The pandemic has clearly made us reevaluate the way in which we work and live and the benefits that remote working have revealed are so clear that it does not seem this will be a pandemic only faze. 

Benefits of Remote Working 

There are many advantages of remote working, which explain why so many employees, and employers, are keen to continue this work model long after the pandemic. 

Productivity and Performance 

Working from home enables employees to have more control over their work schedule and work hours. Employees have been able to break out of the traditional 9-5 working structure while working from home, as suits them. For example, a night owl may be more productive working into the night, than in the morning as they would in an office, and working remotely allows them to do so. 

Moreover, performance has also seen an increase from remote workers. Again, this is to do with employees having a stronger sense of autonomy in their working lives, not only over hours, but location, communication and free time. Forbes, according to an acclimation of reports from Gallup, Harvard University, Global Workplace Analytics, and Stanford University, concluded remote workers produced work with 40% less mistakes, and employers saw a 41% lower rate of absenteeism; proving high productivity and performance. 

Profitability 

Benefits of remote working are not limited to employees; businesses, big and small, are also benefiting. Companies have been able to save money through remote working and report higher profitability. 

Remote working allows companies to downsize their office spaces, decreasing their spend on building upkeep, printers, computers, and so on. Many companies have either ditched their big offices for smaller ones, as not as many people are in, or are taking advantage of co-working spaces, such as WeWork, which not only saves costs, but is better for the environment too. 

Mental Health 

As already mentioned, remote working allows the individual to have more control over their days, perhaps this includes meditation and mindfulness breaks, to improve their mental health. 

But that’s not all, remote working allows for more freedom and flexibility which can give the busy parent time to pick up their kids from school, the working daughter time to visit her elderly parents and for the simple things that slip through the cracks when in the office everyday, such as dentist appointments. 

Remote working allows for employees to make time for their personal life within the hours of a work day, greatly reducing stress in their work and personal lives. 

Work from Anywhere

A major benefit of remote working is the location flexibility. Since the pandemic, many of us have been locked inside our houses, remotely working and fed up. 

The good thing about remote working is that you can work from anywhere providing you have access to the internet. Want to take a break from your house and spend a few weeks in an Airbnb by sea? You can do so without taking any holiday! 

Similarly, remote working has expanded opportunities for people who are keen to travel the world, break out from the day to day, and still continue to make money. For example, digital nomads are on the rise as the modern day wanderers of the world. Take off for a year or two, travelling to a new place each month while continuing to work remotely, why not? All you need is a laptop and internet connection! 

Work/Home Life Balance

Admittedly, remote working seems to blur the lines between work and home pretty significantly but, if managed properly, the balance can be healthier than ever when working from home. 

Working in an environment like your home can make you feel more comfortable and in control than being in the office. You can plan your time more freely and efficiently and arrange your work and home responsibilities with more ease. 

Also, working from home, or anywhere but the office, can help your work life balance by getting rid of office politics and toxic office environments. If you have been dealing with tricky office situations, ditch the office for home and no longer deal with social work issues on your personal time. 

Owl Labs also reported that 22% of remote or hybrid employees were happier than office workers; due to less stress, better mental health and higher productivity. Similarly, a study done by Ergotron, a hybrid office, found that 56% of 1,000 employees found their mental health and work-life balance improve when adopting the remote or hybrid work model. 

Disadvantages? 

Although there are many benefits of working remotely, of course, it may not be for everyone. 

There are some downfalls of the remote working model, such as:

  1. Reliance on technology and WIFI

When working remotely, if you don’t have reliable, high-speed internet, or an up to date, smooth operating laptop, it can be difficult to complete tasks and stay connected to your colleagues and supervisors. 

  1. Lack of Social Interaction

Some people thrive in an office environment and may miss the day-to-day social interaction. Being at home all day staring at a computer screen can feel lonely and empty at times. 

  1. Work/Personal Life

Although it is possible, it could be difficult to draw the line between work and personal, making it harder to concentrate on either one. Drawing the line and setting boundaries is easy on paper, but harder in practice. 

  1. Self Discipline 

Successfully remote working requires a lot of self discipline, for example, sticking to strict boundaries, routines and work hours. For some, this may be easy, but for others it may be hard to stick to their plans and work when they are tempted by home distractions. 

Get A Digital Number For Remote Working

So, what makes remote working work? 

It seems to be a combination of boundaries, work and personal separation and routines to keep a healthy day-to-day schedule. 

Having the right technology, however, is also a major factor in successfully remote working. Marko Gargenta, CEO of PlusPlus, stated “it (remote working) gave companies a kick in the butt… they’ve had to upgrade their tech”.

Devyce is the mobile solution for remote workers. As a VoIP system, Devyce allows you to have a completely wireless, cloud-based number; meaning it can be used from anywhere.

For freelancers, digital nomads and more, Devyce provides a number that they can give to customers, clients and colleagues to stay connected while at home, on the job, or on the move; without dealing with physical handsets, country blocks or giving out their personal number. 

For companies, businesses can switch to a wireless communication system that gives employees a virtual work number, accessible from anywhere in the world, and monitor their call and text activity. Remote working has transformed digital communication in the workplace, and Devyce is the perfect solution for businesses who want to adapt to the ‘new normal’ and improve their communications by getting a cheaper, more efficient communication system that supports the remote work model. 

Learn more here: https://devyce.com/product/features/ 

Purchase a Teams or Solo package here: https://devyce.com/pricing/ 

Sources: 

https://www.forbes.com/sites/laurelfarrer/2020/02/12/top-5-benefits-of-remote-work-for-companies/?sh=20e5d15416c8

https://www.lumapps.com/blog/remote-working/benefits-of-working-remotely/

https://www.itpro.co.uk/business-strategy/flexible-working/362187/how-to-keep-your-mobile-workforce-happy

https://www.forbes.com/sites/bryanrobinson/2022/02/01/remote-work-is-here-to-stay-and-will-increase-into-2023-experts-say/?sh=4254e52120a6

https://www.forbes.com/sites/bryanrobinson/2022/02/04/3-new-studies-end-debate-over-effectiveness-of-hybrid-and-remote-work/?sh=1684cda959b

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