Effects of Work From Anywhere on Employee Retention

After the pandemic began and the workforce started transitioning to working from anywhere, it’s understandable that some employees don’t want to return to the old ways. Many have realized the traditional setup is not the ideal environment for them, not to mention how much time they waste on the commute.

How does working from anywhere affect employee retention? The work from anywhere setup has been beneficial to their well-being and performance, thus improving employee retention. Employees who prefer this setup are likely to resign if their workplace required them to return to the office. After all, many other companies now allow the opportunity to work from anywhere — they can simply find employment elsewhere. This is a valid concern for business leaders.

If there is a threat to retaining your workforce, you must figure out a way to make them stay. When you see the value of the work from anywhere setup, you will also understand why it’s vital for employee retention.

How Work From Anywhere Affects Employee Retention

Employee retention pertains to your company’s capability to keep its team members. The Great Resignation is threatening to break many businesses, and this pushes leaders to determine the root of the problem and re-strategize.

Business leaders need to see the positive values and culture the work from anywhere setup encourages. When you empower your employees, you also gain their trust and loyalty.

1. Employees enjoy having more autonomy.

Through working from anywhere, employees can exercise more autonomy. They do not have to deal with the constant micromanaging in the office and have more decision-making opportunities.

According to Janice Gair, the President and Co-Founder of EI Advantage, “People want to feel empowered to do great work on their own terms, which means the days of micromanaging bosses [are] long gone. Autonomy is one of the reasons why someone stays with a company or chooses to leave.”

Employee autonomy goes beyond controlling when and where to work. It also means being empowered to take control of how you work.

Because of the distance barrier, managing supervisors cannot insist on their input as you do your tasks. Instead, they can focus on the results you produce. Feedback is still essential, of course.

Tips for Employers:

Do you want to encourage autonomy and retention wherever your employees work? You can do the following:

• Do not resort to online micromanagement.
• Compliment your employees for a job well done.
• Provide the option to work on projects they want.
• Ask them for feedback and listen.
• Let them take credit for their work.

Giving your employees a certain amount of autonomy shows that you trust them.

2. Employees enjoy the flexibility.

Flexibility is one of the key ingredients to attain autonomy for employees. How can you say they have control if they do not get to choose where and when they work?

Samantha McLaren, the Lead Copywriter of LinkedIn Global Impact Marketing, says, “The ability to work remotely or adjust hours can have a hugely positive impact on an employee’s health and overall well-being. It can also be great for your company, increasing productivity and improving morale.”

McLaren pointed out two things — productivity and morale. Working from anywhere allows employees to customize a location to suit their work style best, allowing them to be productive. Employees feel a sense of accomplishment when they perform well, thus boosting their morale.

Now, why would they even think of leaving a company that empowers them like this?

Tips for Employers:

Allowing employees their flexibility does not equate to leaving them on their own. Even with a work from anywhere setup, the company must still provide appropriate guidance and management. Likewise, employees need to practice responsibility and accountability.

Here are some things you can do as an employer:

• Establish channels for communication.
• Be clear on output expectations.
• Be aware of when and where your employees are working.
• Make them feel comfortable using their sick and vacation leaves.
• Be the first to model a healthy work-life integration.

3. Employees enjoy higher compensation

According to Payscale, employees who work from anywhere earn about 23.7% more than those working in a centralized office. That does not include the money they get to save from not having to commute.

It does not take rocket science to understand why employees want to stay in a company that pays well. Proper compensation is vital “for their self-esteem and as a practical means to living,” says Barbara Bean-Mellinger, a long-time freelance writer and photographer.

With work from anywhere, employers can focus more on their employees’ outputs and make accurate compensation decisions. Furthermore, there are conversations on creating policies to adjust salaries to reflect the remote employee’s location. 

Companies are also considering other forms of compensation, like free vacations and working allowances. Those make for an attractive picture to get employees to stay loyal to their company.

Tips for Employers:

Businesses, big or small, have implemented remote, hybrid, and work from anywhere models. The previous work landscape is unlikely to return. Employers are pondering on decreasing incomes for the flexibility employees enjoy.

While many employees who work outside the office report their preference for flexibility over a wage increase, this still hardly seems fair. After all, shifting to work from anywhere is cost-effective for both employees and employers. They no longer have to spend on maintaining a physical office like before.

Instead of decreasing employees’ wages, think of those compensations as an investment to improve your retention rate.

4. There is an increasing prioritization for employee wellness.

The Founder and CEO of Remote Evolution, Anne Bibb, says, “The relationship between remote work and mental health is complicated. It’s not a simple cut-and-dry survey that shows remote work either helps or hurts mental health.”

Whether positively or negatively, working from anywhere significantly impacts an employee’s overall wellness. Because it’s one or the other, companies are likely to pay more attention to their employees’ mental well-being. After all, it can affect work culture and performance. 

Isolation and loneliness are among the major challenges posed by working from anywhere. Employees cannot interact with their colleagues face-to-face. Fostering work relationships becomes more challenging. Companies can work around this by conducting spontaneous face-to-face wellness activities, such as team dinners at a quaint coffee shop.

Tips for Employers:

Don’t commit to the phrase “out of sight, out of mind.” Now more than ever, employers must proactively look out for their employees’ mental health. That is despite working from miles away.

Here are some ways you can look after your employees’ wellness:

• Establish and honor wellness breaks for your teams.
• Zoom fatigue is real, so make space for break times when long video meetings are unavoidable.
• Verbally (or asynchronously) encourage and compliment them.
• Gather their concerns and listen to them.
• Make room for game nights and other fun activities.
• Treat them to spontaneous face-to-face night-outs from time to time.

Every employee’s needs are different from another, and no one size fits all. You have to look at each person holistically. Then, figure out their needs first before you can address them. When they see that employers care for them holistically, they are more likely to develop loyalty to the company.

We have some more tips in another article entitled “Helpful Tips to Implement an Employee Wellness Program.”

5. The workforce is more democratized.

Distance is no longer a barrier. With work from anywhere, companies can access top talent worldwide and vice versa. This setup allows companies and workers with the same goals and values to find each other.

That is not the only way work from anywhere has democratized the workforce. Some groups are slightly more vulnerable than others when working at a centrally located office. Now, they no longer have to worry about that.

Specifically, these groups are:

• Women, or those with household care responsibilities
• Physically and mentally disabled people
• Those who cannot financially afford to live in business center cities

Tips for Employers:

Start from hiring. Work from anywhere has also allowed for changes in the hiring process. You can take advantage of this to look for people more aligned with your company’s goals and values. Specifically, remember the following:

• Be inclusive.
• Make a strong brand presence online.
• Explain what you are looking for clearly.
• Look at both technical and soft skills.

A SAP Insights article writes, “The option to work remotely is not just good for employees. It is a major step toward creating more inclusive organizations.”

Work from anywhere allows companies to be inclusive, and inclusive organizations embody trust and loyalty. Therefore, employees are more likely to stay in alliance with them.

Factors for Good Employee Retention

Let’s expound on factors for good employee retention that go hand in hand with implementing a work from anywhere setup.

1. Growth Opportunities

Employees are less likely to stay in a company where they see no opportunities for advancement. Ensure that they can see themselves growing in their career right where they are to keep them motivated.

A promotion is a great way to make an employee feel like they are contributing to a cause. It also show them your appreciation. But even without a promotion for a while, employees may still value a lateral position transfer. Why? Pace change, growth in experience, and upskilling.

“If you want to keep someone, don’t let them be stagnant. They’ll make a move one way or another–either within your company or out of it,” says Candice Cheng, Head of Insights at APAC LinkedIn.

2. Good Management and Company Culture

You’ve probably heard the saying, “Employees don’t quit their jobs; they quit their managers.”

Micromanagement — especially in a physical setting — can suffocate employees because they do not feel trusted and appreciated. Likewise, it can hinder their growth significantly. Hence, the company management must embody respect and trust toward their employees, regardless of where they work.

One good way to do this is to gather employee feedback. That will show employees you value their voice, creating a comfortable and healthy company culture.

3. Flexibility and Work-Life Integration

Flexibility is one of the best things work from anywhere offers employees. The lack of it is also one of the leading causes of resignation nowadays.

What’s one thing that business leaders must remember? While work is important, their employees’ lives must not revolve around it. Providing flexibility for your employees means you value their work and well-being.

4. Competitive Compensation and Bonus

Many employees do not work for salary alone. But you can turn them away if you don’t give them proper compensation for the work they do.

Salaries and bonus opportunities show them how much the company values them. It is a motivating factor for employee performance. A meager income can lead to low morale and productivity.

Compensations don’t just include direct salaries. They also involve:

• Commissions
• Profit share
• Allowance
• Vacations
• Insurance

5. Company–Employee Goals and Values Match

Strategizing for good employee retention outcomes should start as early as the hiring process. HR leaders must understand the company’s goals and values and hire employees who fit those criteria.

When hiring from anywhere, the tough part lies in establishing solid communication. Hence, companies must strengthen their branding, especially on social media, to help applicants be aware of their values. On the flip side, companies have access to talent worldwide because the location is now less of a hiring concern.

What soft skills should you look for in hiring remote employees? Read our article, “The Skills Companies Need When Hiring Remote Workers.”

Why Prioritize Employee Retention?

Employee retention is crucial for your company’s health and success. A LinkedIn article from Fuel50, an HR service providing AI Talent Marketplace solutions, states, “Focusing on what makes your employees happy and motivated at work while also being mindful of what make[s] them leave is what will strengthen your positioning in today’s competitive work environment and enable your organization to retain top talent.”

Hence, to improve employee retention, HR leaders must ask questions like:

• Who are the ones leaving?
• What makes employees resign?
• What makes employees stay?
• What is the company offering?

We also wrote an article giving recommendations on how to improve employee retention. If you want to learn more, read “Easy Ways to Boost Employee Retention.”

There’s one thing we cannot deny. Companies offering the opportunity to work from anywhere see much better retention than others.

According to an article by Edrex, “Employees are sticking with their employer when they have remote work options.” It refers specifically to a report made by 72% of employer respondents. FlexJobs’ 10th Annual Survey also reports that 44% of employees are willing to resign if forced to revert from remote work.

Working from anywhere is a significant step toward employee inclusivity and empowerment. When empowered to work wherever they are productive, employees can perform better. The focus of businesses has also been shifting to prioritize employees’ overall well-being more. This creates more trustworthy organizations and loyal workers.

Employees will be willing to stay as long as they see that the company looks after their growth.

Related Questions

1. Does work from anywhere affect employee productivity?

The choice to work from anywhere affects employee productivity positively, contrary to some people’s opinions. Because employees get to choose when, where, and how they work, they can work at their most productive level.

2. Are employees more satisfied when they work from anywhere?

One size does not fit all, so it differs for everyone. Some jobs and some people require a physical office. Nonetheless, the CNBC SurveyMonkey Workforce Survey 2020 reported a 75% score on the Workforce Happiness Index among remote employees.

One potential solution to for businesses that still require a physical office is to implement a hybrid work setup.