More for a quick overview than an in-depth analysis, advantages vary according to wide-ranging variables. Where are your main offices? Where are your developers located? What are your office costs, tax laws, and health insurance requirements? What is the local commute via personal vehicle or public transport like? This barely scratches the surface of possible benefits, but let’s quantify a few major ones with a few examples.
Office Space. In the United States, companies have an average of 150 square feet of office space per employee. In San Francisco, this translated to about $12k per year – or half that in someplace like Chicago. Scrum Teams like to say between 3 and 9. On a straight average, that’s a savings of $36 – 72k per year, per team.
Insurance. Healthcare costs in the United States run close to $15k per employee and rising at a rate of about 5% per year. The first thing one is likely to say is that there are no savings to be found here as agencies will simply pass along their insurance costs. Perhaps, but the United States only comprises 4% of the world’s population – and 96% of the balance ALL pay far less for insurance. Aside from a few European countries, insurance rates run 50% or lower US-based premiums.
On this, one of our US expat colleagues living in Odesa, Ukraine, claims to have spent less than $5,000 total over the course of 15 years for his and his wife’s medical and dental care. He cites having received a $1,000 bill for a one-hour emergency room visit for an EKG in 2004 while living in Kentucky, even with his insurance picking up 80% of the tab.
Productivity and Quality. Working from homes brings numerous advantages for companies keeping an eye on their software developer’s performance. Nearly 4 of 5 remote developers are less stressed from avoiding an hour or more commuting to and from the office. Almost the same number, 77% say they are more productive working from home citing fewer disruptions. A variety of reports indicate a 10 to 50% increase in productivity, thus a wide variety of factors apply. Automated software development analytics and DevOps should constantly track developer performance to regularly monitor improvements whether in-office or remote.