Posted in Management Best Practices

Remote vs. In-House Finance Teams: Which Model Is Right for Your Business?

As businesses adapt to new work environments, many are debating the benefits of remote versus in-house finance teams. We’ll explore the pros and cons of each model, helping decision-makers determine which approach best suits their company’s financial operations and long-term goals. If you’re struggling to find the financial professionals you need to help your business thrive, connect with our team at PrideStaff Financial.

Productivity increases:

According to Forbes, remote workers are approximately 40% more productive. In addition, they have a higher measurable output. On its own, this metric demonstrates the merits of instituting a remote workforce for finance companies.

Reduced calling in and increased engagement:

Like many other organizations, your company has likely encountered absenteeism since bringing employees back to the office setting. Fortunately, a remote workforce for finance is less prone to “calling in sick”. The dynamics of how people work has changed significantly since the pandemic. Remote workers do not have to interact with peers face-to-face. They do not have to commute. They also enjoy immediate access to all of the amenities of their home. They can balance work-life much more efficiently. Attention spans increase when working remotely. These factors discourage absences and can also improve employee motivation to perform.

Could save your company money:

Forbes as well as the Department of Labor have collected data on telecommuting and remote work as it relates to profitability. The data shows that organizations saved approximately $11,000-$20,000 annually per remote worker who worked on a part-time basis. If you elect to leverage a full-time remote workforce for finance positions, your company could save even more.

Increased health:

Data collected among varied types of workforces over the last four years has shown that the health and wellness of remote workers have increased by 60% versus their counterparts. Remote workers report feeling less stressed and more balanced throughout their workdays. They also report that they are able to include various options to “how” they work to increase physical health, such as standing work desks at home, exercise balls to sit on while working, and taking more frequent short breaks to walk or exercise, all of which reduces stress and increases overall happiness of where they are working. Surveys also show that employers have reported a healthy increase in communication with remote workers.

While the benefits are many. There are a few challenges to allowing staff to work remotely. However, there are also solutions.

Training and Education:

Regulatory compliance requires ongoing employee training and education. Without the right training, employees will make more mistakes, with dire consequences for them, those they serve, and your organization — including legal ramifications, fines and other penalties, and reputational damage. Poor compliance training also reduces team members’ awareness of the risks of remote workplaces, jeopardizing employee safety and the security of sensitive information. However, you can get around this challenge by requiring team members and staff to be in the office either one day a week or three times a month for consistency and operational updates.

Technology infrastructure:

Highly regulated industries like finance and accounting must maintain a robust technology infrastructure that meets regulatory standards, provides secure access to systems and data, and is regularly updated and stress tested. Remote working environments often lack physical security measures in a traditional office environment. This makes it easier for sensitive information to be compromised. In regulated industries, unsafe technology setups can lead to noncompliance penalties, reputational damage, and loss of client trust. Additionally, remote employees may become targets for phishing scams, malware, and other cyber threats, putting their personal and professional information at risk. Solutions include: making sure IT establishes a few guidelines and offers equal support for remote teams across time zones. This support should be proactive and virtual or in-home set up. Make sure IT teams are trained to work proactively with both in-office and remote workers. Prioritize VPN access for all remote workers, whether they are always at home, working remotely in the field, or working while traveling. A VPN creates a secure connection between an employee’s device and the company’s network, protecting sensitive data from unauthorized access. IT support is crucial to getting employees set up with VPNs and other security measures.