Until recently, the idea of working from home (WFH) was at the top of the “must be nice” list for most employees. In fact, according to the Pew Research Center, only 20% of people with jobs that could be done remotely were working from home most of the time in 2025.
But global lockdowns forced businesses and employees to switch to remote work almost overnight. And by February 2025, around 60 percent of U.S. employees with jobs that could be done remotely were working from home most or all of the time.
The previous two years saw a 40 percent increase in people working from home. So, there must be some benefits to it. Some way people and businesses save costs by working remotely? Let’s read on to find out.
The Great Change: How Working From Home Has Shifted
In 2025, around seven million people (3.4 percent of the population) were working from home in the U.S. But these were just the minority.
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Most people were constantly commuting between work and home, spending upwards of $6,000 to $12,000 on travel costs.
But not many of them were happy with their situation. In fact, a Gallup research study conducted in 2024 found that 54 percent of office workers would leave their jobs for ones with better flexibility.
And no job offers more flexibility than a remote one, as found by a FlexJobs survey conducted between March and April 2025. The survey showed that almost 58 percent of the respondents would “absolutely” leave their jobs if the WFH option was waived.
A year later, another survey conducted from February to March 2025 by FlexJobs found that almost 77 percent of respondents would choose work from home as their second highest compensation and benefit.
And as the Pew Research Center study shows, around 40 percent of U.S. workers got their wishes. That’s fantastic news. But what are the real benefits or advantages of working from home?
How Has Working From Home Cut Costs?
Working from home has many benefits. It helps employees be 20 to 25 percent more productive than their on-site counterparts, decreases employee turnover by 25 percent in companies that offer remote work, and increases business productivity.
But that’s not all. Working from home also allows:
- Companies to See an Average Increase of $2,000 in Profit Per Remote Worker
According to Stanford, employers can save a significant amount of money by encouraging remote work.
For instance, by removing the need to pay for in-office rent, supplies, utility bills, travel reimbursements, maintenance costs, and repair, they save more than they did in previous years.
Also, according to Global Workplace Analytics, an average U.S. company saves around $11,000 per employee by having their workforce work remotely for half of their workweek. That money could provide workers with better WFH equipment and improve current remote working systems.
- Remote Workers to Save $7,000 in Food and Childcare
According to TECLA, remote workers save more because they eat at home instead of at restaurants or cafes and care for their kids instead of getting caretakers. As a result, they can save around $7,000 to $10,000 per year.
- Businesses to Find Top Talent
Around 64 percent of recruiters say that a work-from-home pitch helps them find high-quality talent. This saves companies thousands in recruiting and HR costs.
And the best thing is that most high-income skills translate well to remote work, such as finance, marketing, coding, etc. So, not only are businesses easily able to find top talent, but employees also get the benefit of a higher salary.
- Remote Workers to Save on Commuting Costs
Global lockdowns showed employees how much money they spent commuting to and from their homes to their workplaces every day.
And in expensive cities like New York or Los Angeles, public transportation costs, tolls, parking, and gas easily set employees back by thousands of dollars. What’s more, they also spent a significant amount of time commuting.
However, due to remote working, workers can save the money they spend commuting, increasing their job satisfaction. They also save time.
For example, workers in Chicago spent an average of 71 minutes commuting (costing $8,060), those in San Francisco spent 69 minutes commuting (costing $13,067), while workers in Washington spent 63 minutes commuting (costing them $10,642).
So, remote workers saved an average of $11,000 by eliminating commuting from their everyday routine.
- Companies to Reduce Employee Turnover
According to Owl Labs, almost 74 percent of workers say having a remote job would make them less likely to resign. This increases employee retention and reduces company costs spent on recruiting, headhunters, and onboarding — as proven by a later Owl Labs report.
Owl Labs found that companies offering remote work have 25 percent lower turnover in comparison to companies that don’t. Why? Because increased job satisfaction leads to greater loyalty, which reduces turnover.
The Bottom Line
Working from home is slowly but surely becoming the new normal. Why? Because it offers unparalleled benefits, such as increased employee retention (reducing head hunting costs), performance (cutting delays and downtimes), and job satisfaction (increasing loyalty).
Remote workers also save thousands every year on transportation, childcare, and food costs, while businesses save on brick-and-mortar expenses, allowing both to pour money into bettering their prospects.
