Sun Apr 16 2023
Founders & Tech Leaders

Remote Work and Employee Retention

Soha Rajput
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"People want more than just a pay cheque."

As a result of the epidemic of COVID 19, recruitment processes have been drastically altered. Automation and remote working have become the standard. Challenges, such as maintaining staff loyalty, are introduced by this novel aspect. When compared to on-site employees, remote workers have a fundamentally different experience of job satisfaction.

A FlexJobs research study revealed that remote workers are happier with their jobs than people who work in person. Moreover, they feel less stressed and have a better work-life balance. Therefore, remote work can help employee retention if companies figure out how to handle the problems. The demand for remote working has increased to a point where 50% of employees, according to research by Owl Labs, would gladly take a pay cut to have the option of continuing to work remotely.

What makes remote employees retain, and what is remote work changing about employee loyalty and engagement?

Let's unlock that mystery!

What are Employee Loyalty and Engagement?

Employee engagement refers to the level of commitment and involvement an employee has towards their work and the organization they work for. Engaged employees are enthusiastic about their work, motivated to perform well and invested in the organization's success. As a result, they are likelier to go above and beyond their job requirements and take the initiative to improve their work.

Employee loyalty refers to the level of commitment an employee has towards their organization. Loyal employees are dedicated to their organization and its goals and are likelier to stay with it for extended periods. They feel a sense of attachment and loyalty towards the organization and are willing to work hard to help it succeed.

Engagement and loyalty are closely related, as engaged employees are more likely to be loyal to their organization. When employees are engaged, they are invested in the organization's success and are likelier to stay with the organization for extended periods. Conversely, disengaged employees are more likely to leave the organization, which can be costly for the organization in terms of recruitment and training costs. Therefore, organizations should prioritize employee engagement and loyalty to create a positive work environment and achieve long-term success.

Does remote work impact employee engagement and loyalty?

Remote work can increase employee engagement and retention, providing employees with greater flexibility and autonomy and increasing job satisfaction and work-life balance. In addition, remote work can help employees avoid stress and time wasted commuting, improving their overall job satisfaction. Moreover, a survey conducted by Owl Labs found that remote work can contribute to employee retention, with 71% of remote workers reporting that they are happy in their job, compared to 55% of on-site workers and a study by Buffer found that remote workers are more likely to be engaged in their work, with 43% of remote workers reporting that they are highly engaged, compared to 28% of on-site workers.

All-in-all, remote work significantly impacts employee engagement and loyalty, resulting in more significant employee turnover.

But despite the excellent side of remote work, some inevitable challenges arise in a remote workplace.

Factors Contributing to Employee Engagement & Retention

1. Company Culture

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The importance of company culture in employee loyalty has grown in recent years. For example, a recent study found that 34% of workers are considering leaving their current positions due to the company culture.

Considering that many employees are quitting their positions for reasons other than pay, it is essential to consider how you may enhance the corporate culture to make working there more enjoyable.

Additionally, a study by Deloitte found that 94% of executives and 88% of employees believe that a distinct workplace culture is important to business success. Moreover, research by Harvard Business Review found that employees who feel they fit into the company culture are more likely to be engaged and loyal.

2. Employee satisfaction

How remote workers feel is linked to how they work. When employees are happy in their jobs, they feel like their work and pay are enough to keep them interested, as it ensures mutual benefits. In addition, they like working with diverse teams and know that their companies engage to help them grow.

Moreover, a study by SHRM found that job satisfaction was the top contributor to employee engagement and that engaged employees are more likely to be loyal to their organization. The study found that engaged employees were 87% less likely to leave their organization than disengaged employees.

3. Compensation

![Impact of Compensation on Employees.jpeg] Screenshot 2023-12-01 at 4.10.10 AM.png

Compensation and benefits are essential factors that contribute to employee loyalty and retention. Companies that offer fair and competitive compensation packages and attractive benefits are more likely to retain top talent, improve job performance and have a positive reputation in the job market.

Research by Harvard Business Review found that employees who are satisfied with their pay and benefits are more likely to be loyal to their employer. In addition, the study found that companies that pay their employees fairly and offer competitive advantages have lower turnover rates and higher levels of employee loyalty.

Employees form bonds when they are satisfied with compensation and benefits and are more likely to be engaged, perform better on the job and remain loyal to their employer.

4. Learning & Development Opportunities

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Current working trends suggest that employees prefer to keep upgrading their skills and indulge in diverse learning. Hence, employees tend to look for career development jobs.

Training and growth are essential for keeping employees loyal; Research by LinkedIn found that employees with access to learning and development opportunities are more engaged and dedicated to their employer. The study found that employees who felt their employer offered learning and development opportunities were 21% more likely to feel confident, 23% more satisfied and 17% more likely to stay with their employer long-term.

Training ensures employees have the skills, knowledge and tools to do their jobs well. Setting up regular training sessions for your employees or letting them choose and attend several training courses each year will help them improve their skills and show them that you value them and want them to stay with the company.

Your employees will be more likely to see a future with your company if they have opportunities to learn and grow.

Challenges & Solutions of Remote Work That Impact Employee Engagement and Loyalty

When remote workers face challenges such as social isolation, communication difficulties, technical issues and work-life balance problems, they may become disengaged from their work and the organization, leading to decreased job satisfaction and a higher likelihood of turnover.

Here are some common challenges and solutions for remote work:

1. Isolation

One of the biggest challenges of remote work is social isolation. Employees may feel disconnected from their colleagues and the organization when working remotely, leading to decreased job satisfaction and engagement. According to a survey conducted by Buffer, 19% of remote workers identified loneliness as their biggest struggle with remote work and the majority of remote workers (85%) desire to feel more connected to their peers. Nevertheless, disengagement has repercussions beyond interpersonal dynamics in the workplace.


1. Virtual team-building activities

One of the best ways to combat social isolation is by providing opportunities for remote workers to connect. Virtual team-building activities, such as online games, trivia contests, or virtual happy hours, can be a great way to do this.

2. Celebrating successes

It's essential to recognize and celebrate the successes of remote workers, as this can help foster a sense of pride and engagement. Managers should acknowledge and celebrate remote workers' achievements in a public way, such as through virtual announcements or company-wide emails. Hence, reward employees for their greater job satisfaction.

3. In-person meetups

While remote work is often associated with no need for face-to-face interaction, in-person meetups can be a valuable way to help remote workers feel more connected. Organizations can consider hosting periodic meetups or conferences to allow remote workers to connect with colleagues and managers in person.

2. Clear Communication

![Challenges & Solutions of Remote Work.jpeg] Screenshot 2023-12-01 at 4.10.25 AM.png

I would like to imagine you're trying super hard to convey your point, but you can't do that because of communication barriers. How would you feel?

Frustrated, exhausted and tired. You would want to give up and move on without communicating.

Similarly, communicating effectively and collaborating on projects can be more challenging when employees work in different physical locations. Miscommunication or lack of communication can lead to frustration, confusion and decreased productivity. According to a survey conducted by Slack, 57% of employees report feeling less connected to their coworkers when working remotely and 46% report feeling less productive.

Employees get disengaged when they need more clarity and context, so they may feel uncomfortable voicing their ideas. However, it can eventually result in a low employee turnover if not tackled correctly.


1. Use collaboration tools

Collaboration tools like project management software, video conferencing platforms and messaging apps can help remote workers stay connected and collaborate effectively. These tools enable real-time communication and facilitate teamwork, regardless of location.

2. Establish regular check-ins

Regular check-ins can help remote workers stay on track and ensure everyone is on the same page. Managers should schedule regular meetings and quick catch-up sessions, such as daily stand-ups or weekly check-in, to discuss progress and identify roadblocks.

3. Foster a culture of transparency

Transparency is important for building trust and ensuring everyone can access the same information. Managers should encourage open communication and ensure everyone can see project progress and updates. This can also improve professional relationships.

3. Technology

Technology is also a significant challenge for remote workers. While technology makes remote work possible, it can also be exhausting if it doesn't work correctly. Technical issues can lead to wasted time, decreased productivity and increased stress. A survey by Datto found that technical issues were the most common problem faced by remote workers, with 70% of respondents reporting experiencing technical issues while working remotely.

Even before the COVID-19 pandemic hit, in-office employees were losing 28 minutes of work for every IT issue, a pretty dismal state of affairs from the perspectives of employee engagement and business continuity, according to a study conducted by Nexthink that looked at the technical problems that disrupt work for remote employees:

  • 38% had issues with VPN access to critical software

  • 37% had problems with Wi-Fi connectivity and reliability and

  • 35% had challenges using video conferencing apps

So, despite technological advancements, there still needs to be a gap in remote jobs.


1. Provide the necessary equipment

Organizations should provide remote workers with the necessary hardware and software to enable them to perform their jobs effectively. This may include laptops, smartphones, software licenses and other tools needed to complete tasks.

2. Offer tech support

Remote workers may encounter technical difficulties when working from home. To address these issues, organizations can offer tech support, such as an IT help desk, to help troubleshoot problems and resolve issues quickly.

3. Ensure data security

With remote work, data security can become more challenging to manage. Organizations should establish clear security policies and procedures to protect sensitive data from cyber threats.

4. Work-Life Balance

![Work Life Balance Importance.jpeg] Screenshot 2023-12-01 at 4.10.34 AM.png

Another challenge of remote work is work-life balance. When employees work from home, it can be more challenging to establish boundaries between work and personal life. As a result, remote workers may find themselves working longer hours or being expected to be available outside of traditional work hours, leading to burnout and decreased job satisfaction. According to a survey conducted by the Harvard Business Review, 40% of remote workers report working longer hours than they would if they were working in a traditional office setting.


1. Establish clear boundaries

Encourage remote workers to establish clear boundaries between their work and personal lives, such as defined work hours, creating a dedicated workspace and avoiding checking work emails or messages outside of work hours so they can produce quality work.

2. Encourage breaks and self-care

Remote workers may feel pressure to be constantly available and productive. Encourage them to take daily remote working breaks, such as walking, practicing mindfulness, or engaging in a hobby or exercise. Moreover, it can influence remote fuel work and employee productivity. Hence, say no to tiring work hours!

3. Use technology

Technology can be leveraged to help remote workers manage their time more effectively. For example, project management tools can help employees organize tasks and prioritize their workload, while communication tools like Slack can help reduce email overload and streamline communication.

Sustaining employee loyalty, like customer loyalty or trust in any relationship, takes time to develop. Instead, it creates when a company makes its workers a top priority regularly. 

This involves considering not only monetary benefits but also the impact of one's work on one's values and the quality of life for one's staff. There are no shortcuts here; however, when both parties put effort into the connection, they gain a genuine sense of loyalty to your company and mutual respect.

Bottom Line

Hiring individuals who align with the company's values and culture can lead to better employee engagement and loyalty. When employees feel that they fit in with the company culture, they are more likely to feel motivated to work towards company goals and to stay with the company for a more extended period.

Most companies are doing everything except hiring the right team in the first place.

So, how do you hire the right people for your business?

This is where Remotebase comes in! It helps you hire a dedicated team of qualified technical professionals within 24 hours with a free 2-week trial and no upfront charges. It doesn't only help you with cost savings but enables you to access diverse team leads. All the individuals undergo a rigorous recruitment process to make it to the top 1% of talent with a caliber of Silicon Valley Projects.

Remote Work and Employee Retention FAQs

What is the correlation between employee engagement and retention?

Employee engagement and retention are strongly correlated, as engaged employees are more likely to remain with their employer longer and can engage their employees are more likely to retain them, leading to improved business outcomes and reduced turnover costs.

How does remote work affect employee engagement?

Remote work can have both positive and negative effects on employee engagement. It can increase flexibility and work-life balance but also lead to feelings of isolation and disconnection. Overall, the impact on engagement may vary depending on individual preferences, work culture and remote communication and collaboration quality.

Does remote work increase employee retention?

In some cases, remote work can positively impact employee retention, but there are more comprehensive solutions. However, remote work can offer autonomy and work-life balance, leading to greater job satisfaction and loyalty.

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