There is no denying the American workplace has gone through immense changes in the past few years due to the remote work revolution. Studies reveal that in 2023, 12.7% of full-time employees work from home, with another 28.2% working a hybrid model that combines home and in-office work. An Upwork study further reveals 32.6 million Americans will be working from home by 2025, representing 22% of the workforce. As remote work takes root, many companies in the US are hiring contractors and gig workers to fill part-time roles and save the costs of full-time employees.

Let’s highlight the opportunities and challenges remote work offers employers and employees.

Opportunities that remote work offers to employers and gig workers

Here are some key benefits of the remote-based work model for employers and employees alike:

• Cost savings: Perhaps the most crucial benefit remote work offers companies is cost savings. When employers hire contractors, freelancers, and virtual workers, they reduce expenses typical with full-time employees. Contractors and gig workers are responsible for paying their own payroll taxes, social security, and other benefits like health insurance. They also work remotely or use their equipment and tools. This means the employer doesn’t have to bear the burden of these additional costs, which can be significant when hiring full-time employees.
• Access to a larger talent pool: When location is no longer a constraint, employers can hire the best talent from across the globe rather than being limited to a specific geographical area. This expands the potential talent pool and increases the likelihood of finding highly skilled and qualified employees at reduced costs.
• 24/7 operations: With a distributed workforce, businesses can operate around the clock, serving customers from different time zones. This can enhance the workforce’s productivity while increasing customer satisfaction and better response time.
• Flexibility: From the worker’s perspective, remote work offers much flexibility compared to traditional office work. It allows gig workers to choose a more flexible schedule with the freedom to pick the ideal time to start and end their workday. This can benefit those with personal commitments such as family responsibilities or educational programs they want to pursue.
• Work-life balance: Remote work offers employees greater control over their work schedules, allowing them to balance their personal and professional lives better. This flexibility can lead to reduced stress and improved overall well-being.
• Lower work-related expenses: Remote employees often spend less on work-related expenses, such as commuting, work attire, and eating out, which can result in cost savings.

Challenges that remote work presents to employers and employees

Even with their immense benefits, remote work presents several challenges to both employers and employees. These include:

Cybersecurity risks

Remote work can expose companies to cybersecurity threats, with a 2022 study revealing 20% of organizations were affected by a breach due to a remote worker. To mitigate these risks, employers should ensure remote-based employees and contractors accessing company networks and systems follow security protocols.

Challenges in monitoring productivity

Some employers have reported they find it hard to track remote workers’ productivity and work progress. Although remote monitoring tools can be used to monitor progress, there is always an inherent risk of breaching employee privacy and confidentiality.

Reduced employee benefits

Generally, gig workers and freelancers are categorized as independent contractors rather than company employees. Independent contractors are not entitled to the same benefits as regular full-time employees. With this in mind, remote workers often miss out on crucial benefits such as health insurance, retirement plans, paid time off, and unemployment insurance.

Isolation and loneliness

Although remote working can improve work-life balance and happiness, several studies reveal remote workers often feel isolated and miss the social interactions that come with being in a physical office. In a recent Glassdoor survey, over a third of remote workers in full-time employment said the setup made them feel lonely. Lonely workers are less productive and engaged and are five times more likely to miss work due to stress.

Burnout and depression

Remote work can blur the lines between work and personal life, leading to potential burnout and decreased job satisfaction. Without clear boundaries between work and personal life, remote employees may struggle to “disconnect” from work, resulting in compromised work-life balance, fatigue, stress, and even depression.

Remote work represents the future of work

Overall, remote-based part-time and contract work offers many advantages for both employers and employees, from reduced costs, increased productivity, and greater work-life balance to reducing work-related expenses. However, it also poses some challenges that can impede the potential of all parties. For these work models to work seamlessly, parties need to address potential challenges and establish clear communication channels and guidelines.