Sarah Akida

Work from Home Policy: A Guide to Best Practices and Implementation

A Work from Home Policy provides a structured framework to balance operational efficiency with employee satisfaction, ensuring alignment with organizational goals and employee needs. This guide details the key components of effective remote work policies, as well as the benefits to organizations and employees that the work from home policies create.

What is a Work from Home Policy?

A Work from Home Policy is a well-defined structure that outlines expectations, guidelines, and best practices for remote workers. These policies ensure a smooth transition, or start, for remote work positions while addressing business needs, performance standards, and legal considerations for eligible employees. A well-documented work-from-home policy template helps organizations outline expectations and provide clarity for all staff members.

Benefits of a Strong Work from Home Policy

Implementing a clear policy benefits both remote employees and businesses. By ensuring that the policy is well defined, companies set transparent expectations which appeal to the most suitable top talent. This allows for the company and remote staff to reap the benefits of working from home, some key advantages of which include:

Cost Savings

Reducing the need for physical office space and utilities can lead to significant financial savings for organizations. Businesses save on rent, electricity, office supplies, and maintenance costs. Some organizations reinvest these savings into employee benefits, such as home office stipends or wellness programs.

Increased Productivity

Many employees experience fewer distractions and can focus better in a personalized remote work environment, leading to higher productivity. Studies show that remote workers who spend less time commuting take fewer breaks, ultimately increasing their efficiency. Organizations should incorporate clear performance guidelines and productivity-tracking tools to ensure that work output remains high.

Talent Attraction and Retention

Providing work options makes organizations more attractive to top talent. Employers that offer remote work can hire candidates from different cities, states, or even countries, broadening their talent pool and creating a more skilled workforce. Organizations with strong remote work policies also experience lower employee turnover rates.

Environmental Benefits

Decreasing daily commutes contributes to lower carbon emissions, promoting a better world through environmental sustainability. With fewer people commuting, companies indirectly reduce air pollution, fuel consumption, and urban congestion. Some businesses may even incentivize employees to adopt eco-friendly home office setups.

Diversity and Inclusion

Expanding hiring opportunities to different geographic locations fosters a more diverse workforce. Remote work allows people with disabilities, caregivers, and individuals in rural or underserved areas to access career opportunities they may not have had otherwise. This promotes a more inclusive and equitable workplace culture.

Employee Financial Savings

Employees save on commuting costs, work attire, and meals, increasing disposable income. The reduction in transportation costs, fuel expenses, and daily meal purchases leads to an improved personal financial situation for many workers. As mentioned above, some companies provide subsidies or stipends for home office equipment to further enhance financial savings.

Business Continuity

A remote workforce ensures operations continue uninterrupted during emergencies or disruptions. Events such as natural disasters, public health crises, or even infrastructure failures can hinder traditional office settings, but companies with remote work policies can maintain productivity with minimal disruptions.

Reduced Absenteeism

Employees with flexible work options take fewer sick days and are more engaged. Remote work allows employees to work from home when feeling mildly unwell instead of taking a full sick day. This flexibility leads to higher attendance rates and sustained productivity.

Technological Advancement

Encouraging remote work can leads to better adoption of collaborative tools and cybersecurity measures. Organizations that embrace remote work often invest in cloud-based collaboration platforms, project management tools, and secure remote access systems to streamline workflows and protect company data. This technological evolution has the extra benefit of positively affecting the entire organization, including in-office employees.

Employee Mental Health Boost

Working from home can have significant mental health benefits. Eliminating long commutes reduces stress and allows employees more time to focus on personal well-being, such as spending time with family, reading, or exercising. Many remote workers report feeling calmer, more relaxed, and better able to focus. Additionally, reducing exposure to toxic workplace dynamics, such as office gossip or interruptions, can lead to increased job satisfaction and improved overall mental health. While WFH policies are not a substitute for formal mental health benefits, they contribute to a healthier work environment.

Physical Health Benefits

Remote work offers employees greater flexibility to prioritize their physical health. Studies have shown that longer commutes correlate with decreased time spent on meal preparation and exercise. Many remote workers use their flexible schedules to incorporate physical activity, whether by using a treadmill desk, taking short walks, exercising with their pets, or engaging in brief workout sessions throughout the day. This increased opportunity for movement, combined with the financial savings that allow for healthier food choices, can lead to better overall physical well-being.

Benefits for Working Parents

Balancing a full-time job while raising children is a significant challenge. Remote work provides parents with much-needed flexibility by eliminating commute times, freeing up on average an hour per day. Studies have shown that when both parents work remotely, household duties are shared more equitably, reducing the burden on any one parent, especially women, who often take on a disproportionate share of unpaid labor. Employers that support working parents through remote work options and family-friendly policies attract and retain top talent.

Pet Ownership

With 1 in 5 American households adopting a pet during the pandemic, remote work has proven to be a significant benefit for pet owners. Studies show that pets help reduce stress and combat loneliness, but caring for them requires time and effort. Many pet owners struggle to afford dog walking services or daycare when working in an office. Remote work allows employees to stay home with their pets, making care easier and more cost-effective.

Enhanced Work-Life Balance

Remote work can help employees to better manage personal and professional responsibilities, leading to increased job satisfaction. Depending on the flexibility of the policy, employees may be able to set their own schedules, allowing for family responsibilities, personal hobbies, and mental well-being. While remote and hybrid positions are not necessarily ‘flexible’, they can assist employees with managing work-life balance. In this way, companies can help employees avoid burnout, a costly factor to employers. The flexibility of the position must be clearly set out in the policy to ensure expectations are aligned for both employer and employee. Companies that incorporate flexible work policies demonstrate a commitment to respecting employees’ time beyond the workplace.

Key Components of a Work from Home Policy

1. Eligibility Criteria for Remote Work

Defining eligible positions ensures that remote work requests are handled fairly. Consider the following factors:

Job Responsibilities:

Assess whether the job duties can be effectively performed remotely without compromising quality or productivity. Examples of roles well-suited for remote work include software developers, digital marketers, customer support specialists, content writers, and data analysts.

Performance Metrics:

Evaluate an employee’s past performance to determine their suitability for a remote work arrangement.

Departmental Needs:

Ensure that remote work does not negatively impact business operations or customer service.

Case-by-Case Basis:

Review remote work requests individually to accommodate unique circumstances and maintain fairness.

Small Business Considerations:

For small businesses, assess how remote work can impact team dynamics, resources, and overall operations.

Student Employees:

Ensure that remote work does not interfere with academic responsibilities and provide guidance on balancing work and studies.

2. Work Schedule and Availability

A clear plan for work hours and response times ensures consistency. Policies should include:

  • Expectations for regular check-ins
  • Any flexibility based on time zones and business needs
  • Procedures for handling dependent care and medical leave
  • Expectations for employees who split time between home and office

3. Home Office Setup and Necessary Tools

Providing guidance on home office requirements ensures employees have the equipment needed to perform effectively. Consider:

  • Internet service and secure access to company networks
  • Office supplies and reimbursement policies
  • Use of technology for collaboration and security
  • Guidelines for setting up an optimal remote work environment
  • Ergonomic recommendations for a comfortable and safe workspace

4. Data Security and Compliance

Remote work presents unique data security challenges. Organizations must enforce:

  • Protocols for handling sensitive data
  • Secure use of information technology tools
  • Guidelines for protecting company policies and intellectual property
  • Requirements for secure remote locations to ensure company assets remain protected
  • Cybersecurity Training to provide employees with resources to recognize and mitigate potential cyber threats

Copy & Paste Example Work from Home Policy


[Company Name] Work from Home Policy

Effective Date: [MM/DD/YYYY]
Last Reviewed: [MM/DD/YYYY]
Department Responsible: Human Resources

1. Purpose

[Company Name] recognizes the benefits of remote work for employees and the organization. This policy establishes guidelines for employees working from home to ensure productivity, communication, and compliance with company standards.

2. Scope

This policy applies to all eligible employees at [Company Name] who have received approval to work remotely, either on a full-time or hybrid basis. Eligibility is determined based on job responsibilities, department needs, and employee performance.

3. Eligibility

Employees eligible for remote work must meet the following criteria:

  • Hold a role that can be effectively performed remotely
  • Maintain a satisfactory performance record
  • Have completed [X] months of employment
  • Obtain approval from their department head and HR

4. Work Schedule & Availability

  • Remote employees are expected to work their standard schedule (e.g., 9 AM – 5 PM) unless otherwise approved.
  • Flexible work hours may be available depending on the role and manager discretion.
  • Employees must be accessible during core business hours for meetings and collaboration.

5. Home Office Setup & Security

  • Employees must ensure a dedicated, quiet workspace free from distractions.
  • A stable internet connection and necessary software/tools are required.
  • Employees must follow IT security guidelines, including VPN use and secure storage of sensitive data.

6. Communication & Collaboration

  • Employees must check in with their managers regularly via video calls or team meetings.
  • Company-approved communication tools (e.g., Slack, Zoom, Email) must be used for official work.
  • Attendance at mandatory virtual meetings and company-wide events is expected.

7. Performance & Productivity

  • Work performance will be evaluated based on deliverables, response times, and engagement.
  • Managers will conduct regular check-ins to discuss goals and progress.
  • Employees must track tasks and progress using [Project Management Tool].

8. Equipment & Expenses

  • [Company Name] will provide essential equipment (e.g., laptop, headset) as needed.
  • Employees may be eligible for a home office stipend for internet, ergonomic chairs, or supplies.
  • Expenses must be pre-approved by HR and submitted for reimbursement.

9. Compliance & Policy Adherence

  • Remote employees must adhere to all company policies, including data security, confidentiality, and professional conduct.
  • Violations of the work-from-home policy may result in disciplinary action or revocation of remote work privileges.

10. Reviewing & Updating the Policy

This policy will be reviewed periodically to ensure effectiveness. Employees are encouraged to provide feedback to HR for ongoing improvements.

For any questions regarding this policy, please contact [HR Contact Information].


Find more examples of Remote and Hybrid Work Policies in my previous Ongig blog, Hybrid Work Policies: 4 Best Examples for Strong teams+template.

Other Types of Flexible Work Policies

Companies looking to support employee well-being and productivity are increasingly offering alternative flexible work arrangements beyond remote work. Some common options include:

  • Flextime – Employees choose their start and end times within a set range, allowing for personal flexibility while maintaining core business hours.
  • Job Sharing – Two employees share one full-time position, splitting responsibilities and hours.
  • Part-Time Remote Work (Hybrid) – Employees split their time between working remotely and being in the office.
  • Compressed Work Weeks – Employees work the same total hours but in fewer days, such as a four-day work week.

One of the most popular options is the four-day work week.

What is a 4-Day Work Week?

A four-day work week is a compressed schedule that allows employees to work four days instead of five. Some companies implement a 32-hour work week, while others retain a 40-hour structure by requiring employees to work four 10-hour days.

Shorter work weeks have gained momentum in industries such as technology, healthcare, and remote startups, particularly following the pandemic. Employers report benefits such as increased productivity, lower turnover, happier employees, reduced costs, and fewer cases of burnout.

Benefits of Offering a 4-Day Work Week

  • Higher Productivity: Research shows that employees maintain or even enhance productivity while working four days instead of five.
  • Better Work-Life Balance: A three-day weekend allows employees to rest, recharge, and spend more time with family.
  • Cost Savings for Employers: Businesses can reduce operational costs by limiting the number of office days.
  • Improved Employee Retention: Employees with a flexible schedule tend to stay longer with companies that support work-life balance.
  • Reduced Burnout: Employees working fewer days experience lower stress levels and higher job satisfaction.

What to Include in a 4-Day Work Week Policy

If your company is considering implementing a four-day work week, here are the key components to include in your policy:

Purpose

Outline why the company is offering a flexible schedule and its expected benefits for both employees and the organization.

Scope

Define which employees are eligible for the four-day work week (e.g., full-time, salaried, or remote employees).

Eligibility Requirements 

Specify probationary periods, role-based restrictions, or voluntary participation guidelines.

Hours and Schedule Options 

Provide different scheduling models (e.g., 32-hour vs. 40-hour work weeks).

Compensation Overview

Clarify whether salaries remain unchanged or if employees receive paid time off for reduced schedules.

Request and Approval Process

Establish a procedure for employees to request or modify their flexible work schedule.

Policy Review and Adjustments

Allow for periodic review of the policy’s effectiveness and make necessary adjustments.

Why I Wrote This

Remote work has become a fundamental part of modern business operations, offering benefits such as improved work-life balance, cost savings, and greater access to top talent. However, for organizations to truly harness these advantages, a well-structured Work from Home Policy is essential. By clearly defining expectations, eligibility criteria, and security measures, businesses can ensure that remote work remains productive, secure, and aligned with company goals.

This guide helps businesses create clear, effective remote work policies that set employees up for success while maintaining operational efficiency. Whether you’re looking to refine an existing policy or build one from scratch, having a structured approach ensures fairness, compliance, and long-term sustainability.

Implementing a strong Work from Home Policy is the first step in recruiting top talent who prefer remote work, Ongig’s Text Anyalzer software helps businesses create compelling, inclusive, and optimized job descriptions that align with company policies. Book a demo here.

Shout-Outs:

  1. Employee Burnout: The Hidden Threat Costing Companies Millions by Julian Hayes II
  2. Work from home stipends: a guide for employers by Barbara Matthews
  3. Why Did We Stop Taking Breaks When We Started Working Remotely? By Jennie Latson
  4. How can remote work policies contribute to significant cost savings in human resources? by Vorecol Editorial Team
  5. COVID Pandemic-19 Shows Telecommuting Can Help Fight Climate Change by Ainslie Cruickshank
  6. Return to Work Knowledge Base by rtwknowledge
  7. Commuting–a further stress factor for working people: evidence from the European Community. II. An empirical study by G Costa, L Pickup, V Di Martino
  8. Unpaid Care and Domestic Work by ActionAid
  9. The power of pets against loneliness by Jennifer Huizen

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