5 Work-From-Home Risks That Are Here to Stay

Businesses were exposed to new and expanded risks when employees abruptly began working from home during the pandemic. The most pressing risks – like IT security and remote accessibility – were quickly addressed. However, many of the mitigations put in place were designed to be temporary fixes rather than long-term solutions. And that could leave you vulnerable.

Today, it’s clear that remote work is here to stay. Some 58% of employees recently surveyed said they can work from home at least one day a week – and 35% said they have the option to work from home five days a week. And when given the option, 87% take it.

Using personal devices for work-related tasks continues to pose a security risk, particularly regarding confidential information. Other cybersecurity risks like increased susceptibility to phishing attacks are also concerns. Remote workers need to adhere to the same security measures and protocols they would in an office setting to avoid being tricked into clicking on suspicious links or giving out passwords, credit card numbers, or other sensitive information.

Here are five additional work-from-home risks to address in a more proactive, permanent, and strategic way:

1. Labor Regulations

The freedom to work from anywhere prompted more than one in 10 Americans to move since 2020 – many of whom moved out of state. While tax law varies by state, this may mean you need to comply with an expanded number of jurisdictions based on where your employees currently reside.

Wage and hour laws also remain in place while employees work from home. While it is difficult for an employer to assess an employee’s hours when working from home, the burden remains on employers to maintain accurate records.

After-hour social events like virtual happy hours can open employers to risk as well. In the relaxed comfort of their own homes, employees may, for instance, temporarily forget they are at a company event and engage in inappropriate behaviors like harassment or discrimination.

Minimize your work-from-home compliance risk by centralizing jurisdictional requirements with software that can seamlessly integrate relevant HR data. And minimize your HR risk with regular, clear communications about ethics and expectations.

2. Workers’ Compensation

Employers have little control over what happens in an employee’s home — even when they’re “on the clock.” If an employee working from home falls down the stairs and sustains an injury or trips over their dog while on a work call is that a legitimate work comp claim?

Case law on this topic, even prior to the pandemic, established that workers must prove they were working in the interest of the employer at the time the injury occurred. The sticking point is if the injury arose out of the employment or if the risk existed at the home regardless of employment.

Minimize your work-from-home risk by responding quickly to any claim filed and streamlining the claims administration process for faster resolution, which will lead to better outcomes all the way around.

3. Ergonomics

Employers are obligated by law to provide accommodations for employees with perceived and known disabilities, even when working from home. This could include ergonomic computer equipment or a special chair to relieve backaches while sitting all day. Does this definition of disability extend to a worker who has neck pain after choosing to work scrunched up on the couch all day – or a manager who has back pain after days spent working while perched on a kitchen bar stool?

In a work-from-home world, the organization’s obligation isn’t so clear. Minimize your risk by supplying employees with an “office-in-a-box,” complete with a chair, desk, and more. Or offer a set amount of money for employees to purchase whatever ergonomic equipment would be most helpful to them.

4. Burnout

As many as 45% of workers say they are burned out when working from home because of a lopsided work/life balance. When working and living in the same space, there are no clear boundaries to separate work and personal life, which can make it difficult to shut the laptop and end the workday.

To be clear, though, burnout is more than simply being exhausted from working too much. True burnout is known to cause a variety of physical and mental conditions, including high blood pressure, heart disease, obesity, a weakened immune system, anxiety, depression, cognitive decline, and even death.

Minimize your risk by demonstrating balanced behavior at the top. Encourage employees to set limits – and make it acceptable to hold off on, say, an email response until regular business hours. It’s also a good idea for managers to regularly check in on their direct reports to make sure the balance is in check.

5. Psychological Stressors

Overall, 91% of remote workers surveyed report having a positive experience working from home. However, remote and hybrid workers tend to experience higher rates of mental health issues.

That’s sobering news for employers where mental health was already costing an estimated $300 billion a year, according to the World Health Organization. Zoom fatigue, loneliness, blurred work-life boundaries, and distractions that make it difficult to focus are all adding to worker stress levels. – which in turn leads to increased absenteeism and higher healthcare costs. In fact, healthcare expenditures are nearly 50% greater for workers who report high levels of stress.

Minimize your risk by minimizing the stress on your workforce. And consider increasing access to mental health care. Be clear about expectations – and look for work output, not hours input. Less stressed-out employees are good for business.

With a hybrid workforce seemingly here to stay, this is the time to take a fresh look at your work-from-home risks and manage the impacts from a strategic perspective. Organizations that adapt well to this new reality are poised to enjoy all of the advantages of a happier, more productive workforce – and a stronger bottom line.

For more on risks to watch out for, download The New Generation of Risk report, and check out Riskonnect’s Integrated Risk Management solution.