Assessing the Impact of Remote Work Policies on Organizational Costs and Profitability in the Corporate Sector
Shalini S, MBA student, Faculty of Management Studies | CMS Business School |
JAIN (Deemed-to-be University)
Selvi S, Professor, Faculty of Management Studies | CMS Business School |
JAIN (Deemed-to-be University)
Abstract
Purpose – The purpose of this study is to examine the impact of remote work policies on organizational costs and profitability. The study aims to assess how adopting remote work arrangements influences direct operational costs, hidden costs such as cybersecurity risks and employee disengagement, and sustainability-related benefits, while analysing their overall effect on organizational financial performance.
Design/Methodology/Approach – This study will use a quantitative research design. Data will be collected through structured questionnaires administered to employees and managers from selected organizations along with secondary data sources that have implemented remote work policies. The questionnaire will measure perceptions of cost savings, productivity, hidden costs, sustainability benefits, and the overall impact on profitability. Statistical analysis will be conducted to identify correlations and significant differences in organizational outcomes due to remote work adoption.
Findings – The findings indicate that remote work policies significantly influence organizational performance by reducing operational costs and enhancing productivity. However, hidden costs such as disengagement, technology expenses, and cybersecurity issues Anegative relationship between hidden costs and profitability, while sustainability-oriented remote practices were found to moderately improve financial and environmental outcomes. Overall, the study highlights that structured hybrid models deliver optimal financial efficiency and employee satisfaction.
Social Implications- The research emphasizes the importance of adopting flexible and sustainable work models to support employee well-being, work–life balance, and environmental responsibility. It suggests that remote work can contribute to social sustainability by reducing commuting stress, promoting inclusivity, and minimizing carbon emissions. The findings encourage organizations to design people-centric remote policies that balance productivity, profitability, and societal well-being.
Originality/Value – The originality of this research lies in its comprehensive approach to assessing remote work policies by combining cost, productivity, hidden cost, and sustainability perspectives. The study contributes new empirical evidence from the Indian context, highlighting how organizations can optimize remote work strategies for financial and environmental gains.
Key words – Remote work policies, organizational costs, profitability, hidden costs, sustainability, Bangalore.
