Why Working From Home Might Not Be So Bad…
Illustrated by Haleigh Roy
The novel coronavirus has altered life on a global scale and continues to redefine what is normal.
As the virus endures, several companies have been forced to drastically change their approach to the average work-day. For many, this means keeping employees at home in an attempt to social distance. Going remote has exposed the seemingly obvious simple fact that this type of business model is vastly cheaper. Companies such as Square, Facebook, and Twitter have led the way in forgoing traditional office culture by recently announcing their plan to work from home permanently, an interesting announcement so early into this forced experiment.
But maybe we shouldn’t be so surprised. In the United States, the average cost per month for one worker in a private office is $400. In New York, the average price per square foot of office space is approximately $65 a month. The monthly cost of a zoom enterprise license… $19.99. Hypothetically, even if each employee is only 80% as effective at home as in the office, the company will thrive by saving thousands on reduced expenses. Working from home also grants employees much greater freedom: freedom to work how and where they feel most comfortable, freedom to be with and care for loved ones, and freedom to choose where they want to live.
There are many upsides to life in the big city, especially when it comes to finding things to do. However, there are also many downsides; including how to pay for those things to do and certainly regular living expenses. For example, the average price of a one-bedroom apartment in Manhattan is $3,100 a month and comes with blaring sirens at 3am, poor air quality, and elements of poverty and homelessness in close proximity. On the other hand, the average price of a one-bedroom apartment in beautiful coastal Charleston, SC is $1,178 a month and is a much more attractive area for raising a family. Remote work removes the constraint of location on employees and allows for the natural migration of peoples away from cities and towards rural areas. This push to move to more desirable, spacious, and cheaper areas will ultimately create new thriving communities and present unique opportunities in the real estate industry.
The ability to operate remotely has also allowed start-up companies without the capital means to own or rent workspace (such as our own) to be created, run effectively and efficiently, and repurpose available capital to more important needs such as product development. This past January, when the idea of The Millennial Investor was first conceived, the team actively considered renting WeWork office space in Boston, a central location for all of the partners. However, the office price tag was simply too daunting and quite frankly wasted capital. Encouraged by the pandemic and social distancing guidelines, the team, instead, decided to work virtually. Working remotely has allowed our startup to acquire employees from top colleges all across the nation. Each and every employee provides a diverse and unique perspective that contributes to our goal of producing quality investment research without the bullsh*t. And they do it remotely.
Unprecedented, difficult times often serve as a catalyst for new innovations and cultural shifts. As companies are forced to adapt to global crises, they must consider new ways to maintain efficiency while also remaining competitive. Companies such as Facebook, Twitter and Square are redefining the notion of an office by replacing overly-expensive corporate buildings and in person meetings with a more practical, virtual workspace. As a cultural trend towards virtual working develops, why not live where you want to live... and enjoy cheaper rent!
Sources:
https://www.rentcafe.com
https://novelcoworking.com
https://zoom.us/pricing
https://www.rentjungle.com