Do you currently have employees working remote full-time? No matter the size of your business, it is likely that you do. Due to the recent pandemic outbreak, remote work became a necessity for many employers to implement for their employees. However, the popularity of remote work was on the rise long before the pandemic. According to Global Workplace Analytics, between 2005 and 2018 the number of remote employees increased by 173%. This is largely in part to the benefits or remote employees such as lower overhead costs for your company. However, employers must manage the inherent risk that comes from a large number of remote employees for their company.
Though there are positives that come from transitioning employees to working remotely, there are also a number of drawbacks. The first being the difficulty in managing remote staff. Some managers may feel they’re more effective at enabling their staff when they’re in person and able to effectively communicate through any problems. Unfortunately, while working remotely, it’s not as simple as strolling into your manager’s office to discuss an issue at hand. Often times there will be delays in communication, which will also affect the way that collaborative work between departments is completed. It is also a possibility that certain employees operate more effectively while in the office rather than working at home, so managers are faced with the challenge of keeping employees accountable for the work they complete while remote.
In addition to this, more inherent liability comes from remote work. For example, in order to facilitate employees to work from home, companies must provide their employees with the necessary hardware to report to work. But what happens if this hardware is ruined by another employee’s family member? What if the employee spills coffee on their work hardware and is longer able to report to work remotely? Even worse than this, what happens if the company’s hardware is stolen? Not only does this create a large financial loss, companies must be weary of potential data breaches that can come from stolen hardware especially. Insurance is necessary for companies to cover these situations.
This insurance, known as first-party cyber liability insurance, covers damages that are a result of these data breaches. Whether it be from stolen hardware or online schemes, it is important for companies to encourage their employees to be as safe as possible while conducting work remotely. It is for this very reason that the incorporation of VPNs, up to date firewalls, and antivirus software are so important in protecting a company’s data.
Despite these risks, it is always important to consider what positives stem from remote work for employees. Individuals feel like they have more freedom and free time when given the chance to work remotely, and this has a large positive impact on the mental health of a company’s employees. For more information on how companies should balance these risks, consider reviewing the accompanying resource courtesy of B2Z Insurance.