Home working opens up a new range of possibilities for the way businesses can work and structure themselves. The outbreak of the coronavirus (COVID-19) pandemic in March 2020, gave employers and employees a practical insight into home working as commercial premises had to shut down in response to the government's requirements to protect public health.

Before the coronavirus pandemic, working from home was on the increase as many employers identified the benefits that it can bring to their business and the improved work-life balance for their employees. Even if you don't think working from home would be beneficial for your business, employees with 26 weeks of service have a statutory right to request flexible working arrangements such as home working and you, as an employer, have to seriously consider such requests.

Advantages of employees working from home

With increasing numbers of employees working at home - or using home as a working base for at least part of the week - it's clear there are a number of benefits for business, such as:

Flexibility and agility

Home working enables more agility and flexibility in working arrangements. With employees no longer tied to an office, they may be better placed and more willing to work flexible hours such as earlier or later in the day or even at weekends. This may help you meet certain business needs eg if you are trading with customers residing in a different time zone.

Improved employee retention

Home working can help retain employees as the flexibility of home working can help them meet childcare needs, reduce their commute, and enable them to fit their work around their personal lives. Being allowed to work from home, staff will also feel increased levels of trust from their employer, which can contribute greatly to staff loyalty.

Attract new talent

Home working can be offered as an incentive to come and work for you helping you to attract new talent to your business. Even just offering the option to work from home will give you an advantage in the job market over competitors that don't offer home working as an option to their staff.

Increased productivity

Due to fewer interruptions, which would normally occur in an office environment. By contrast, working from home allows for a quieter environment that can facilitate more focused work. You may also find that some employees may wish to increase their paid contractual hours as they save time that was previously spent commuting to and from the workplace.

Increased staff motivation

By working from home staff will feel more trusted by their employer as the working relationship isn't as closely monitored and employees are allowed a degree of autonomy to get on with their work. Staff will also be happier developing a home working routine that suits them better and this can contribute towards them feeling more motivated to give their best.

Improved staff health and wellbeing

Working from home eliminates the need for a commute to work which can be stressful for your employees. Time savings such as this also enable staff to get extra health benefits such as additional sleep, spending more time with family, exercising, or preparing healthier meals.

Financial benefits

Savings on office space, office supplies, utility bills, and other facilities. Staff may also be able to take advantage of the tax relief available from HM Revenue & Customs (HMRC) for working from home - see claim tax relief for your job expenses - working from home.

Convenience

You may have staff that do a lot of visits to customer locations and are therefore not regularly in the office. Allowing them to base themselves from home may be more convenient and leads to further time and cost savings.

Better work/life balance

Working from home can help employees improve their work-life balance eg staff that would have had to commute will now be able to use that time for themselves giving the basis for a better work-life balance. Staff are also able to fit in household chores around their working day giving them more free time in the evenings eg loading or unloading the dishwasher or preparing dinner on their lunch break.

Technology makes it easier

The internet has made it possible for staff to be continually connected to the office. Tools such as Skype have made communication between colleagues and teams much easier and at times can lead to more efficient and effective meetings.

Lower sickness absences

Staff are more likely to feel happier and more energised working from home and therefore less chance of their immune system being negatively impacted by burnout. Also, the fact that employees are working in isolation there is less chance of infections spreading as would be the case within an office environment.

Disadvantages of employees working from home

Though there are some disadvantages to employees working from home, most of these relate to those working from home for all, as opposed to part, of their working week:

Working from home doesn't suit everyone

Working from home might not be suited to everyone's personality or ability. Some employees might prefer the routine and structure that working in an office environment provides them. Some staff may prefer personal interaction with colleagues and also find face-to-face guidance with their manager extremely beneficial in helping them complete tasks and achieve their goals. You also need to be mindful of employees with a disability. Working from home may have a negative impact on the support they need to do their job. Working from home may also not fit in with everyone's home life eg some people may have young children that may be unaware of boundaries and cause interruptions during the working day. Others may not have the physical space required to create a suitable dedicated working area.

Staff feeling isolated

Individuals working from home may feel a disconnect from their colleagues and organisation as a whole that an office environment naturally allows. To address this issue employers could ensure that communication is more regular. So by scheduling quick catch-ups by phone or regular team meetings through other technologies like Teams, Skype, or Zoom, staff are given more opportunities to feel involved and part of the team. More informal and social catch-ups would also help counteract any feelings of isolation.

Difficulty monitoring performance

There could be difficulty managing home workers and monitoring their performance. Different personalities may also respond to monitoring with varying degrees of positivity. You could look at setting goals and targets with workers that are easily measured so that if their targets aren't being met you can identify and remedy any performance issues at an early stage. See managing staff performance and effectively manage employees who work from home.

Home distractions

Although home working removes the distractions that may occur in the office if a worker doesn't have a suitably quiet dedicated working space at home they may get easily distracted by household noises or other members of their household.

Potential burnout

Where an office provides a clear physical distinction between work and home life, working at home can lead to staff struggling to differentiate between work life and home life. This may lead to employees finding it difficult to know how to switch off from work leading to longer hours, increased stress, and inevitable burnout. Employers should encourage their staff to take regular breaks and remind them of the importance of taking their leave.

Cost of working from home

Initial costs of training and providing suitable equipment such as laptops, mobile phones, and other IT equipment. You will also have to consider adaptations to meet health and safety standards.

Problems with staff development

You may find that not having staff in close physical proximity leads to difficulty in maintaining staff development and upgrading skills. However, you could encourage staff to take the opportunity to learn new skills through online events and courses. To get started search for events on our Events Finder.

Information security risk

Information security problems could be more likely to occur when staff are working from home. There is increased risk with laptops being taken home and the need for staff to access servers remotely. Employers should ensure they put measures in place to protect company data by installing encryption software and remote-wipe apps if mobile devices provided by you go missing. Virtual private networks also encrypt your data and provide secure access to a remote computer over the internet. This helps keep your files and data secure yet accessible to your staff. See IT security and risks.

Negative impact on mental health

The switch to working from home may have a negative impact on your worker’s mental health if they are unable to find a routine that works for them, are struggling to separate work and home life, or are feeling isolated. To help you can encourage your employees to develop a working routine, set up a dedicated work space, and set boundaries for other household members. Create more opportunities for staff to stay connected by communicating through regular chats and team catch-ups. Eating healthily and taking regular exercise can also help improve mental health especially when woven into a regular routine. See simple tips to tackle working from home from the NHS.

Decreased staff morale

It can be harder to maintain team spirit when employees are working at home on their own.

Not all jobs suit home working

Working from home suits some jobs better than others. Equally, working from home suits some personality types but not others. Some people may prefer colleague contact by face-to-face communication.

Poor broadband speeds

You should be mindful that depending on where your staff live they may not be able to access broadband speeds that enable them to do their job effectively eg rural broadband is often very slow. 

The coronavirus pandemic gave some employers, who may not have otherwise considered working from home an option for staff, a practical insight into how it affects their business and employees. It has enabled employers to have first-hand experience of the advantages and disadvantages of home working. This experience can be very beneficial in helping employers determine the future direction of working practices that will benefit their business.

For further information see the Labour Relation Agency's (LRA) practical guide to working from home: COVID-19 and beyond.

Hybrid working approach

A shift towards home working doesn't mean employees have to work only at home. Often splitting time between home, or other remote locations and the workplace is the most productive solution. You may want your staff to provide feedback on their working from home experience to get them involved in the process of developing a hybrid working policy.

For further guidance see hybrid working: employer guidance and the LRA's practical guide to hybrid working.

When weighing up whether to let an employee work from home, you should consider the nature of their job.

Jobs suited to home working

Some types of work are particularly suited to home working. For example:

• telesales and marketing
• customer service
• consultancy and professional services, such as accountancy or HR administration
• writing, editing, research and translation
• some types of administrative work

Skills employees need to work at home

You also need to consider whether employees themselves are suited to working away from your base. They're likely to need skills in a number of key areas:

• time management and self-discipline
• motivation
• self-sufficiency
• communication
• technology

Home working isn't for everyone. Bear in mind that if you allow one person to do it, you may be setting a precedent that others will want to follow, so it's best to have a clear idea from the start of how home working could fit the needs of your business. You should establish fair criteria for home working as this will minimise any discrimination risk.

Remember, too, that in some cases you're legally obliged to seriously consider requests for working from home. Employees with 26 weeks' service can request a range of flexible working patterns from their employers - including the right to work from home.

Read more on flexible working: the law and best practice.

An employee's place of work is stated in the written statement of their terms and conditions of employment.

When an employee starts working from or at home, it may be necessary to amend the written statement as a result.

You must follow set procedures when changing an employment contract.

See how to change an employee's terms of employment.

Working from home arrangements during the coronavirus pandemic

The working from home arrangements that were in place during the COVID-19 pandemic were not normally considered to be permanent variations to the contract but post pandemic it may be mutually beneficial for it to become the new normal working arrangement and so it may suit both employer and employee for it to remain in place. See the Labour Relations Agency's (LRA) guide on flexible working.

As an employer you're likely to be responsible for providing, installing, and maintaining all equipment unless the employee uses their own.

Equipment you need to provide may include:

• workstation, including a suitable desk and chair
• filing cabinet, drawers, and shelving
• computer, laptop, or tablet with office software, anti-virus software, email, and broadband internet connection
• printer
• stationery and office supplies

Advances in technology allow you to create virtual teams where employees work together despite working from home.

IT equipment can be expensive, so make sure it is compatible with your existing systems and meets a genuine business need.

Read more on how technology can facilitate working from home.

Remember that you still have health and safety responsibilities for people who work at or from home. Read about your health and safety obligations towards home workers.

Insurance and rates

You'll probably need to extend your business insurance to cover equipment used by employees in their homes. The employee's home insurance policy is unlikely to cover this. They should check with their insurer to make sure they're covered for working at home.

It's also worth mentioning to potential home workers that if they use part of their home exclusively for work, they may have to pay business rates for that portion of their home. It's a good idea to get them to check the position with Land & Property Services. See how to use your home as a workplace.

You also need to ensure that employees take care of business equipment and information in their possession. Employers must ensure that data protection principles are adhered to eg establish procedures to be followed in terms of the storage and security of information and what to do if any item is damaged or lost.

Taxation

This can be complicated and worth getting specific guidance from HM Revenue & Customs in respect of liabilities and set-offs. See expenses and benefits: homeworking.

Working from home can bring a wide range of benefits for both businesses and employees, but it needs to be properly managed to be successful.

Monitoring performance

Monitoring and assessing the performance of people who work at home is perhaps the most significant managerial challenge. It can be helpful to measure their effectiveness in terms of their output rather than the hours they work.

Agree on set goals and deadlines for particular tasks. Keep a close eye on how well the targets are being met and give feedback promptly and sensitively if things go wrong.

Staff training

Training can prepare employees and help them develop the skills they need. This might include:

• self-management skills, eg in time management
• general skills, eg in using IT more effectively or writing reports
• job-specific skills

Encouraging communication

For staff who work alone, a sense of isolation is one of the factors most likely to make home working fail. As a result, it's important to put formal systems in place to ensure people feel part of the team. For example:

• frequent two-way feedback sessions about work and work-related issues
• regular scheduled visits to the workplace
• inclusion in social activities
• clear procedures to follow and people to contact if things go wrong

If an employee's job is home-based from the start, it's a good idea to carry out their induction at your premises. Home workers are more likely to be focused and productive if they have a chance to establish a clear idea of the people and company they're working for.

As an employer you have the same responsibilities for ensuring the health and safety of home workers as you would for staff based at your premises. Your duties are likely to include:

• carrying out a health and safety risk assessment - see managing the risks in your business
• purchasing compulsory employers' liability insurance if you don't already have it - see liability insurance
• ensuring equipment is fit for its purpose
• testing, certifying and maintaining electrical equipment provided by the business
• ensuring computers can be used comfortably and without disturbing glare, see computer health and safety at work
• making sure lighting levels are appropriate
• avoiding trailing cables to reduce the risks of trips and falls
• ensuring staff are suitably trained to work safely
• keeping records of, and if necessary reporting, any serious accidents, illnesses, or injuries experienced by home workers

Remember, too, that employees who use computers regularly - including home workers - are entitled to an eye test paid for by their employer.

Home workers must take reasonable care of their health and safety, as well as that of other people such as family members, neighbours, and visitors. They must also ensure they use work equipment correctly.

During the coronavirus pandemic, it was unlikely that the employer would have been able to carry out the usual health and safety risk assessments at the employee's home. However, the employer should ensure that:

• the employee feels the work they're being asked to do at home can be done safely
• the employee has the right equipment to work safely
• the line manager maintains regular contact with the employee, including making sure they don't feel isolated
• reasonable adjustments are made for an employee who has a disability

The employee should also keep in regular contact with their line manager about health and safety risks and homeworking arrangements that need to change.

For information on your business's health and safety duties, see health and safety basics for business.

See the Health & Safety Executive (HSE) guidance on managing home workers' health and safety.

If you have employees who use their home as a base and generally don't work from your premises, you may have additional health and safety responsibilities to them. See ensure lone workers' safety.

You'll need to keep in touch with employees who work at home. At the very least, you should consider installing a dedicated work phone at the employee's home or provide them with a mobile phone.

This makes it easier to work out billing arrangements and, as you won't need to see the employee's phone bill, preserves their privacy.

Broadband internet connections have made emailing colleagues and business contacts and sharing documents quick and easy.

Virtual teamwork

With virtual teamworking, your employees do not need to be working in the same place, or even at the same time, in order to work together. Consider the following options:

Different time, different place

Employees work separately and keep in touch with you and each other via email.

Same time, different place

Employees can communicate with each other in real-time through telephone conference calls, video-conferencing, or using instant messaging.

Different time, same place

Employees can access your business network or databases by connecting to an intranet or extranet. A virtual private network is a more secure, but expensive, way of doing this.

Same time, same place

Even working from home, your employees will still need to meet face-to-face occasionally. Email and electronic diaries allow you to arrange meetings and transfer documents, while wireless technology allows you to meet anywhere.

Any time, any place

Mobile phones and laptop computers with wireless internet access mean that your employees are always accessible and can work wherever they are. Read more on mobile technology.

Data security

There are important security issues. For example, data security could be compromised if employees working from home use their work computers for personal purposes. It's best to provide staff with a computer and make it clear that it's for business use only.

Install anti-virus and firewall software on users' PCs and use passwords to control access to their computers and to your network. Make sure home workers have read and understood your IT policies and know their information security responsibilities.

Employees who deal with sensitive information should be particularly careful about:

• Keeping equipment at home - they should make sure that their premises are properly secured.
• Transporting equipment from one place to another - items should never be left unattended in a public place.
• Using public internet access - public computers can store information that has been entered.
• Working in a public place such as a train - information on a laptop screen could be seen by others.
• Destroying data that is no longer required - eg a cross-cut shredder should be used to dispose of sensitive papers.

Read the National Cyber Security Centre's guidance on home working: preparing your organisation and staff.

Employees who work from home have a number of key responsibilities.

They should:

• check whether there are any restrictions on home working within the terms of their lease, mortgage, or tenancy agreement for the property
• keep their insurance company informed about the new use of their home
• check if planning permission will be required and apply for it if necessary, though this is unlikely to be the case for a home office
• check if business rates are payable on the part of the property used for work
• ensure their own health and safety and the safety of anyone visiting or living in their home who could be affected by their work
• ensure that they keep sensitive information safe and secure, eg by destroying data securely when they have finished with it

Employees should also be aware that if they set aside a room to work in that has no domestic purpose, they may be liable for business rates on that part of the property or capital gains tax if the property is sold.

Read more on how to use your home as a workplace.

Hybrid working is a form of flexible working where staff spend part of their week working from home or remotely with the rest of their working time spent based in the workplace.

Employers can implement hybrid working for their organisation in different ways. For example, some employers might suggest that all staff come into the workplace two or three days a week and spend the other days working from home. These specific days could be set by the employer or left to individuals to determine themselves.

Benefits of hybrid working

Hybrid working can bring together the benefits that staff experience when working from home, such as fewer distractions and increased productivity, and combine these with the advantages of working in a shared location, such as feeling part of a team and collaborating with greater ease.

Advantages that hybrid working can bring include:

• more flexibility as you can develop hybrid working patterns that suit the needs of the business
• increased staff productivity and motivation
• higher levels of trust and engagement, especially if staff are involved in determining their own hybrid working patterns
• increased job satisfaction means you are more likely to retain staff
• attract new talent – many recruits now expect to be offered the opportunity to work from home in some capacity
• more opportunities for collaboration between teams on the days people are in the office together
• helps support inclusion and diversity
• better staff wellbeing with decreased feelings of isolation and improved mental health for staff with more opportunities for social interaction
• better connection between managers and staff as days in the office offer opportunities for face-to-face engagement
• improved work-life balance for staff
• savings on office space and facilities costs
• improved team availability with staff given the flexibility to connect remotely if they can't make a physical meeting

What to consider when introducing hybrid working

To get the maximum benefit from hybrid working, you should examine:

Organisation goals

Consider what your organisation’s objectives are and how hybrid working could support you in achieving your targets.

Customer needs

How are your customers’ needs met? Can their requirements be delivered online, or is there a need for physical interaction with customers?

Getting the best out of your staff

Determine the type of hybrid working model that will support staff wellbeing and give them the platform to be motivated and productive in their job. The use of SMART targets that are specific, measurable, achievable, realistic, and time-bound will give your staff a clear understanding of what is required of them. In addition, SMART targets enable managers to identify if employees are meeting their targets, and if not, identifying issues at an early stage to provide support staff may need to meet their targets including adjusting the number of days they work in the office, for example, if they need face-to-face support and encouragement. see set business performance targets.

Attracting and retaining staff

You should consider the type of hybrid working that can help you to attract new talent and retain existing staff. Most job applicants like the opportunity to choose to work from home, so offering this as a benefit can give you a competitive advantage in the job market.

Days in the office

Establish why staff are required in the office on certain days and think about what you hope to achieve then. Is it to increase teamwork or collaboration on projects? Is it to maximise staff wellbeing and morale?

Working hours

Can your business’s operating hours be more flexible? For example, if you have customers in global locations, the remote working element of hybrid working enables you to adapt working hours to benefit customers in different time zones. Being flexible also offers staff the opportunity to determine working hours that best fit their work-life balance.

Flexible working requests

Address your legal requirements, including managing formal requests from staff for hybrid working through a flexible working policy. Employees could also request hybrid working as a reasonable adjustment under disability discrimination legislation.

Data protection duties

Securing sensitive data can be more challenging when employees divide their work time between home and the office. Create a policy outlining how to manage data in the workplace, at home, and when commuting between the two. Provide training to all staff on their data protection responsibilities. Read the Information Commissioner’s Office guidance on data protection and working from home.

Health and safety responsibilities

Employers must ensure the health, safety, and wellbeing of their staff when working from home and in the workplace. Employers have a duty of care and must carry out a health and safety risk assessment for all staff.

IT requirements

You will need to ensure staff can access the technology required to work at home, remotely, and in the workplace with minimal technical issues. IT security will also be a priority, as staff will be connecting to your organisation’s systems remotely.

Tax issues

Make your staff aware that they may be able to claim relief for additional household costs if they have to work at home for all or part of the week. See claim tax relief for your job expenses if working from home.

How to introduce hybrid working

When introducing hybrid working, you should take on board the needs of your staff. Take time to engage with staff and their representatives to get their input and effectively communicate your plans with them at each step of the process. This approach will maximise staff buy-in and develop high levels of trust when introducing hybrid working.

Requiring all staff to come into the workplace on set days each week could be counterproductive if staff resent employers stipulating which days they have to be in the workplace. A fixed-day approach also restricts the flexibility that hybrid working offers employers and their workforce. Giving staff the autonomy to select how many days and on which days they come into the office passes responsibility to your workforce. This approach can gain employee buy-in and establish a platform for building trust. It also sets a better work-life balance that could help maximise staff motivation, loyalty, and productivity.

Hybrid working policy

Whichever way you introduce hybrid working, you should communicate your decision clearly to all staff with details on how it works from a practical point of view. For example, you may want to outline scenarios that may impact the hybrid working approach such as when leave such as holidays or sick leave is taken. Ensure you treat all staff fairly when implementing hybrid working. It is good practice to develop a hybrid working policy.

It is a good idea to trial hybrid working; review its progress after a certain period, and then, if required, make changes that will help you maximise the benefits it can bring to your organisation and your staff. Ensure you consult with your employees and their representatives if you make any changes.

Further guidance including a sample policy on hybrid working

You can read further guidance on introducing hybrid working and access a sample hybrid working policy in the Labour Relation Agency’s practical guide to hybrid working.

Read the Chartered Institute of Personnel and Development guidance on planning for hybrid working.

Allowing staff to work from home on either a full or part-time basis can bring a range of business benefits, including greater staff motivation and increased productivity.

Tips for employers on home working

The following top tips highlight key issues you should be aware of if you are considering home working as a possibility for your business.

1. Consider an employee's job and skills

When deciding whether to let an employee work from home, you should consider if the job is suited to home working. For example, telemarketing and writing could be particularly suited to home working. The employee is also likely to need skills in a number of key areas including communication and time management. See types of work and skills suited to home working.

2. Be aware of legal requirements

When an employee starts working from home, it may be necessary to amend their written statement of their terms and conditions of employment. See employment contracts and working from home. You will probably need to extend your business insurance to cover equipment used by employees in their homes. See providing equipment for employees who work at home.

3. Provide appropriate equipment

As an employer, you're likely to be responsible for providing, installing, and maintaining all equipment unless the employee uses their own. Equipment you need to provide may include a desk and chair, PC or laptop, and printer. See providing equipment for employees who work at home.

4. Encourage communication

For staff who work from home, a sense of isolation is one of the reasons that home working may fail. It's therefore important to put formal systems in place to ensure people feel part of the team. See effectively manage employees who work from home.

5. Train and monitor employees

Training can help employees working from home to develop the skills they need, for example, time management or writing reports. Monitoring employees' performance is also important to ensure targets are being met. See effectively manage employees who work from home.

6. Be aware of health and safety responsibilities

You have the same responsibilities for ensuring the health and safety of home workers as you would for staff based at your premises. Your duties are likely to include ensuring equipment is fit for purpose and that lighting levels are appropriate. See your health and safety obligations towards home workers.

7. Consider information security

You should ensure that employees adhere to data protection principles. For example, data security could be compromised if employees working from home use their work computers for personal purposes. You should make clear that the computer you provide is for business use only. You should also install anti-virus and firewall software, use passwords to control access to your network, and ensure workers have read your IT policies. See how technology can facilitate working from home.