The largest overhead cost for several smaller businesses is the location and/or work place. For many businesses, though, it is possible to forgo a location or keep a very small physical location, even with employees. The time and expense in establishing a telecommuting position could be small, if carefully arranged, and the benefits far outweigh the effort in some businesses. Source of article: An employer's guide to setting up work from home programs

How working at home will affect the employee

For small company owners, the prospect of having a worker work at home could be intimidating. Work-from-home agreements inherently remove an element of control, which can be scary for entrepreneurs who are used to controlling every small detail of their business. There have been many studies done that show how good telecommuting can really be. It improves relationships between managers and workers, creates worker morale and even makes things more productive.

Taking away the additional money

Business owners should consider the financial side of things. It might be an intelligent move to have employees working at home. The average cost of office space varies, but an 8x8 cubicle plus surrounding space typically works out to 100 to 125 square feet per worker. Without even considering upkeep and utilities, it could cost $1.50 per square foot. That means $187.50 a month is spent just on space in the office for workers. That cost doesn't have to be paid in a work-from-home arrangement, and employers can even provide workers with high-speed internet connections for half or less of the cost. Workers may be willing to take lower salaries if they don’t have to spend money on transportation and commuting also.

Write down what you want

If you would like to hire a work-from-home worker or move some of your workers to a work-from-home schedule, then a formal arrangement is best. The expectations for tracking hours and work performed should be outlined. You should schedule in-person meetings once every month. Also, you want to define all check in points.

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