Typically there are no overhead costs like computers, office and parking spaces, benefits, utilities etc. According to a study from Sanford University, a company can save about $2,000 per year, per employee who works from home.  Even if you provide funds for the employee to set up a home office, costs remain significantly lower than renting an office space.

With software and programs such as GoToMeeting, PC Anywhere and Gotomypc, companies are now able to meet with anyone around the world without having to actually travel to the person’s locations. While these programs may not totally eliminate the need for travel, they can provide cost savings to companies by minimizing the need to travel for meetings or services. For example, a traveling sales person can use a remote webinar to provide an initial sales pitch and then travel to those that have the true potential to be customers rather than travel to every prospective customer. Account managers or support personnel can also more easily serve their accounts without having to actually be on location.
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Social Media Assistant – Handling social media for businesses can become time consuming for business owners and other staff. This is time that can be spent on other revenue-generating tasks. However, because of its importance in a business’s marketing plan, it can be delegated to a virtual assistant. According to Chris Ducker, every business should have a social media plan .  And this is an area where a virtual assistant can help out. A virtual assistant can plan and schedule your social media marketing on your Facebook business page, Twitter, LinkedIn, and Google pages as well as on any other social media site that you use. They can research content, monitor and engage the users, and assist in building your network. This is a great task to outsource to a virtual assistant, as most business spend anywhere from five to 20 plus hours per week on social media.
Reduced Ability to Collaborate - Even with video chat or video conferencing, employees lack the ability to sit face-to-face and collaborate on projects. This can lead to communication issues if everyone is just doing their own thing. Fortunately, marketing teams can change this by using collaborative software that helps an online marketing process with automated blog posting and other functions to keep everyone in the loop.
Alienation from company. Even if remote workers avoid isolating themselves from other people, they may feel isolated from their company itself. They may find themselves unaware of recent company changes, or feel as though they are the last to hear company news because they aren’t physically present in the office. Some remote workers feel as though they’re overlooked for promotions because they aren’t in the office every day.
Establish an onboarding process. Be sure that every employee who collaborates virtually has the same onboarding experience. They should be given access to the same communication systems and handbooks that explain the company processes. Everyone should be given the same advice and tools for success as they’re brought on board. If possible, it can even be very valuable to have an initial onboarding done face-to-face in an office location.

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I doubt many companies like or prefer that employees work from home. We allow the policy in order to be able to attract employees who would otherwise go elsewhere. We are heavy users of Slack, Confluence and other collaboration tools that make working at home more productive, but they cannot replace the serendipitous interactions that occur while hanging out by the nitro-coffee keg. - Manuel Vellon, Level 11

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