How Can Procurement Use Remote Work to Its Advantage?

Written by Caleb McLaughlin on February 09, 2023

Key Takeaways

Remote work, also known as telework, is becoming increasingly prevalent in the post-pandemic United States.
Remote work represents an opportunity for procurement to align itself with modern workplace trends, identify new cost saving measures, and expand or retain its talent base.
Investments in e-procurement and digital transformation will ensure procurement departments are equipped to handle a remote workplace.

Remote work: as the world adjusts to our post-pandemic reality, teleworking has taken center stage as a new staple in the modern American corporate landscape.

In 2022, 26% of employees in the U.S. worked remotely, according to the job board and research group Zippia, This is a massive shift from pre-pandemic teleworking dynamics when only 6% of workers were fully remote. By 2025, an expected 36.2 million American employees will be working remotely. There’s a good chance you might be reading this article from the comfort of your home office!

There’s no denying it: as the next generation of young people enters the workplace, many of whom attended high school or college remotely during the COVID-19 pandemic, teleworking is here to stay.

Due to advancements in technology and changes in work preferences, modern, adaptable procurement departments must weigh the savings, benefits, and drawbacks of remote work to better integrate the new digital reality into procurement processes.

How does remote work benefit procurement?

Remote work isn’t just a quality-of-life bonus for employees. It’s a real opportunity to save your company money and develop a well-rounded staff equipped to handle any problem. Here are five benefits of remote work from a procurement perspective:

Reduced overhead costs: With remote work, companies can save on office expenses such as rent, utilities, and supplies. Consider whether or not your company needs an office space—or as many office spaces—to maintain your current efficiency. According to Jack Flynn of Zippia, up to 16% of U.S. companies have ditched their office spaces altogether, opting for fully remote settings.
Increased productivity: Teleworking can eliminate workplace distractions and allow for more efficient time and task management. For example, rather than an employee keeping their eyes glued to the computer long past their own attention span, or taking a 20-minute break to go buy a coffee or snack, working from home allows employees to take microbreaks that quickly address their physical or mental needs. In fact, psychologists believe that taking microbreaks helps to reduce stress, improve focus, and even increase productivity.
Access to a larger talent pool: Companies can hire the best procurement professionals from anywhere in the world rather than being limited to those in a specific geographic location. Remote work arrangements also eliminate the need to pay personnel relocation costs.
Increased flexibility: According to the Society for Human Resources Management, work-life balance is one of the top considerations for candidates evaluating job prospects, including whether to leave their current job. Remote work allows employees to have a better work-life balance, leading to improved job satisfaction and reducing turnover and subsequent loss of institutional knowledge.
ESG compliance: Remote work can reduce carbon emissions from commuting and from operating large office buildings, effectively contributing to more sustainable business practices.

What are the pros of remote work for procurement employees?

Reduced commuting time and cost: With teleworking arrangements, procurement employees don’t have to spend time and money commuting to work. Moreover, remote employees aren’t burdened by the stresses of rush-hour traffic, which can linger long after they’re out of the car. With telework, you get the best, most-focused version of your team because they’ve skipped the stress of their commutes.
Flexibility: Depending on your company or department policies, remote work allows employees to work from anywhere and during flexible hours.
Increased job satisfaction: Due to the flexibility, autonomy, and comfort afforded by remote working, remote workers tend to report higher levels of job satisfaction. This leads to better team cohesion, improved morale, and higher productivity.

Overall, remote work for procurement departments and companies at large can lead to substantial cost savings, increased employee productivity, and improved employee satisfaction, making it a viable option for companies looking to optimize their procurement processes and operations.

What are the cons of remote work for employers and employees?

While the benefits and drawbacks of remote work will likely vary by industry or individual, we can identify some common disadvantages that may apply to your department or company as you consider teleworking policies and options.

Miscommunication: Without an office and regular face-to-face meetings, some remote workers and teams may struggle to communicate with internal stakeholders.

- How to avoid miscommunication: Schedule weekly or biweekly round-ups with your team and frequent collaborators to discuss objectives, strategy, and priorities. Discuss communication styles, provide training where needed, and keep your door open to feedback.

Technical challenges: Remote workers may face technical issues such as poor internet connectivity and unreliable or difficult-to-fix equipment, which can negatively impact their productivity.

- How to avoid technical issues: Have a dedicated technical support team and provide remote workers with the reliable hardware and software they need to perform their work effectively. Consider investing in e-procurement systems and utilizing web-based market intelligence solutions that don’t require IT installation.

Lack of supervision: It can be a challenge for managers to directly supervise and give feedback to their remote employees, making it difficult to track project progress, offer constructive feedback on the employee’s performance, or provide oversight on collaborative endeavors.

- How to manage remote workers: Task your remote employees to give regular updates on their objectives and projects; schedule weekly check-ins and don’t be afraid to collaborate over video calls.

Half the battle in ensuring you have an effective remote working force takes place during the hiring process. People who are self-driven and self-motivated are more likely to be successful teleworkers than someone accustomed to having their tasks dictated to them. Workers or students with previous experience with teleworking and online schooling, as well as those who are technically proficient with computers, will be better suited to a remote department.

How do you ensure a remote worker is productive?

Measuring a remote worker’s productivity doesn’t have to be complicated. Rather, it’s about applying your in-office standards to teleworking and making sure that those standards are based on data and not the appearance of productivity. Here are some ways you can keep remote workers accountable while affording them the comfort that comes from their home office:

Set clear goals and expectations, and ensure that the key performance indicators (KPIs) for the role are being measured (either by software or through consistent communication).
Utilize project management or collaboration tools like Teamwork, Asana, or Monday.com to track and monitor a worker’s progress on tasks and projects.
Consider implementing artificial intelligence solutions to automate menial tasks, freeing your employees from busy work or processes that involve bottlenecks.
Schedule regular check-ins and performance evaluations to review a remote worker’s progress, provide feedback, and address any concerns.
Foster an open and communicative environment to ensure your team stays connected with one another and can reach out to each other for assistance on projects.
Provide your remote worker with the necessary equipment and IT support.

Which laws govern remote work?

While the benefits of remote work can’t be denied, there are many legal considerations to weigh when allowing employees to telework for your company.

In the United States, there are as many labor laws, tax codes, and benefit programs as there are states. If you’re allowing employees to work outside the state your company is registered in, you’ll need to stay on the right side of the law, as your company can be held liable for noncompliance. Utilize the U.S. Department of Labor website for state-by-state resources and databases on labor laws.

According to ADP, several states, such as Connecticut, Delaware, Nebraska, New York, and Pennsylvania, utilize the “convenience of the employer” test to tax out-of-state employees employed for in-state companies, with New Jersey debating this legislation in 2023. This means that employees operating out-of-state are taxable by the state unless the employer necessitates that their work is performed out-of-state.

Several states made temporary remote work provisions due to COVID-19. However, these provisions in some states–such as Alabama and Georgia–expired in 2022. Meanwhile, Utah enacted SB 39 in March 2022 to specify tax withholding for employees working temporarily in the state, providing a 20-day window before the employee’s wages are taxable in some cases.

As a general rule, employees who telework are subject to the laws of the state in which they work. It’s crucial, then, to understand the labor practices of the states you intend to allow employees to work remotely. For example, employees working in the state of California are paid overtime if they work more than eight hours in a day.

Additionally, the New York Department of Labor applies all New York state laws to employees working remotely within the state.

How do you prepare your department for remote work?

Check with your HR department or legal counsel to ensure your company and procurement department are compliant with state laws.
Determine whether you have the IT infrastructure to allow effective remote work.
Analyze potential cost savings related to downsizing office spaces.
Invest in e-procurement systems or web-based online reports so you can maintain workflows, continuity of intelligence, and track spend data remotely.
Work with management to ensure that you are investing in a culture, policies, and accountability that will make remote work sustainable for your company