How to Create Sustainable Work-from-Home Policy for the New Normal for 2025 [with Templates]

Co-Founder and Chief Data Scientist

Many Americans have been working remotely since the start of the COVID-19 pandemic, and according to the latest forecasts, they will continue to do so until Spring 2022. Adjusting to the new normal for businesses will mean developing a successful work-from-home rule. Such rules will establish expectations for both employers and employees and will be advantageous to increasing productivity at work.

A recent survey indicates that more than half of employers agree that working from home lead to improved productivity (Statista, 2020). With a policy guiding this work setup, employers can be confident that systems and processes are optimized for achieving company goals.

This guide will walk executives and business owners through work-from-home policy best practices. It will discuss the essential components of a work-from-policy, give tips for implementing it, and provide templates to help employers craft their own.

Work-from-Home Policy Table of Contents

Why Have a Work-from-Home Policy
How to Write a Work-from-Home Policy
How to Implement Work-from-Home Policy
How to Avoid a Tax Surprise with Your Work-from-Home Policy
What Are the Most Common Challenges in Implementing a Work-from-Home Policy?
How Can Ongoing Employee Training Bolster Remote Work Success?
How Can Remote Employees Maintain a Healthy Work-Life Balance?
How Can Remote Work Policies Enhance Career Development and Education?
How Can Remote Work Policies Support Employee Mental Health and Well-Being?
How Do Work-from-Home Policies Address Legal and Compliance Challenges?
Work-from-Home Policy Templates
How to Measure the Effectiveness of a Work-From-Home Policy
How Can You Ensure Ongoing Relevance of Your Remote Work Policy?

Why Have a Work-from-Home Policy

There are many benefits a work-from-home policy can offer. Implemented correctly, it allows companies to increase employee productivity, reduce office space expenses, and gain access to a wider talent pool. Moreover, remote software applications allow workers access to streamlined workflows that simplify processes. For instance, people can establish a portal more quickly by picking from a best domain names list generated by an online platform. These benefits will be discussed in more detail in the following sections.

Increased Employee Productivity

Work-from-home opportunities allow employees to take control of their time and work environment. They can arrange these so as to allow for maximum productivity. Work-from-home setups also eliminate distractions that are common in an office-based environment, such as water-cooler chats, extended lunch breaks, and the like. This can help employees focus on getting things done. In the process, they also take complete responsibility for submitting their deliverables in a timely manner.

Several studies have already been conducted since the onset of the COVID-19 pandemic on the correlation between working-from-home and productivity. Most turn out a positive result. In particular, knowledge workers are more productive working from home.

Lesser Spending on Office Space

After transitioning to working from home due to the pandemic, experts are now questioning whether businesses really need extensive office spaces. They add that in cities like New York, San Francisco, and London, less than 50% of the workforce have returned to the office in 2021, citing an article from Bloomberg.

Hybrid work setups or telecommuting can lessen, if not completely eliminate, the need for a physical office space. Work interactions in industries like management consulting and professional services can be done 100% remotely. This lessens company expenditures on rent and utilities, a budget that can then be allocated to more profitable endeavors.

Much Wider Talent Pool

According to the October 2021 Survey of Working Arrangements and Attitudes, 40% of employees would quit or undertake career exploration just to find another job that offers a work-from-home arrangement (Barrero, Bloom, & Davis, 2021). This kind of work setup is highly sought by employees nowadays. Offering it can attract the most qualified applicants from all over the world for open positions in your company.

In case you would like to hire foreign employees, you can do so by allowing them to work from the country where they currently reside. The parties involved will just have to be mindful of time zone differences.

How to Write a Work-from-Home Policy

There are many essential components of a work-from-home policy, from terms of eligibility to employee feedback. This section will lay out relevant statistical data, software applications, and tips for drafting the document.

1. Define terms for work-from-home eligibility

There are job roles that can work from home 100% of the time and there are workers who need to serve on-site, like frontline workers. In your work-from-home policy, create eligibility criteria for deciding who can work from home and when. One option you can consider is to require only a percentage of employees to be present in the office at a time. You can set a shifting schedule, for instance, of 50% employees working from home and 50% working in the office.

2. Specify working hours and timekeeping system

What shift hours should your employees working from home follow? There are organizations that allow employees to work flexible hours, which means they can choose their preferred work hours.

If you require your employees to work regular hours, clearly state this in your work-from-home policy. Also mention the ways for them to track or record their work hours. Your company may benefit from using time-tracking applications like Time Doctor, Toggl, and RescueTime.

3. Include effects on compensation rate and benefits, if any

Companies like Google are considering pay cuts for employees who want to shift to working from home permanently. If you decide to implement the same change, you should indicate it in the work-from-home policy along with how it can affect employee compensation or benefits. It may be that the company will be shouldering the additional technological costs of remote working or providing employees with the hardware they will need. On the other hand, this could also mean reductions in transportation allowance or other fees that are generally associated with office-based work. You may also outline what benefits the change can bring not only for the company but for the employees so they can see the merit of switching work setups.

4. Discuss the costs and resources covered by the company

List the technological support and resources that employees can ask from the company. Companies typically offer an internet connection service fee and work-from-home gadgets to remote employees. This can be listed as one of the reasons to work for your company. It demonstrates that you care for your employees. By providing the essentials, you will also be assured that everyone is equipped to perform their tasks efficiently.

5. Map out request and approval processes

Let the employees know when and how they should file work-from-home requests. Further, indicate the requests that the company will be open to considering. Are you open to allowing employees to work regularly from home? Is there an option to work from home temporarily given valid reasons? Perhaps you will offer work-from-home opportunities only after a successful trial period? Consider these options and list down the ones you are willing to offer your employees in the work-from-home policy.

Note also how much time it takes to process the requests and who are the ones in charge of approving them. You may pattern the procedures to the sick and vacation leave protocols already in place in your company.

6. Set performance expectations and measures

In order to increase productivity at work, it is important that employees are informed about the key performance indicators for their job roles. The management should establish ways to track task progress and make it visible to the employees involved. Applications like Asana, Workzone, and Trello can help make this possible.

Another way to track performance is to make employees submit a weekly or monthly achievement report stating the tasks they have completed and the number of hours it took them to perform each task.

7. Establish availability standards

Indicate a time when all remote employees are expected to be available for purposes of coordination and collaboration. During these set hours, employees must keep their communication lines open. They must be ready to take calls, participate in online meetings or even virtual team building activities, and answer e-mails and messages from established communication software tools.

Establishing availability standards can help remote employees structure their work time around a routine. It can also help foster better communication among employees.

8. Explain regulations about the use of organizational data

According to HP Wolf Security’s Rebellions & Rejections Report (2021), more than nine in 10 companies updated their security policies to account for work-from-home. Still, 83% of IT team members believe that work-from-home is a “ticking bomb for a network breach." This is reasonable considering that according to the same report, 39% of employees are unsure about the existing security policies in their organization. It is important to include these policies in the work-from-home policy to keep your organizational data safe and secure in the hands of remote employees.

9. Include an acknowledgment of receipt at the end of the policy

An acknowledgment receipt for the signature of employees will indicate that they have read, understood, and agree to the terms and conditions laid out in the policy. This will allow employees to take accountability should issues arise in the conduct of their remote work. You may also encourage suggestions from employees by creating a forum or a website where they can collaborate. To keep it simple, use short domain name generator apps for this purpose.

10. Provide ways for employees to give feedback

Allow space for negotiation between management and employees. Perhaps you can also gain insights by hearing what the employees have to say about the new setup. Encouraging feedback is one way you can motivate your employees to be active participants at work.

After gathering and reviewing feedback, you can consider revising the work-from-home policy as needed. Repeat this process a few times to come up with the perfect work-from-home policy for your company.

How to Implement Work-from-Home Policy

Possibly the most challenging aspect of remote work policy is its implementation. With feedback, revisions, and iterations, you can craft a policy that will work and fit the goals and vision of your company. Here are some tips to help you with that:

Implement a work-from-home trial run first

For many businesses, the trial run already happened without much preparation when the COVID-19 hit, and working from home was made mandatory for health and safety reasons. If you are a new business that has run 100% onsite up to now, you should consider doing a trial run first before transitioning to a fully remote or hybrid setup. A trial run can also help you decide which of these two options is best for your business.

With the WFH advantages in mind, companies should understand that going remote is not a zero-sum game. Often, the best work arrangement is one that combines the traditional with the WFH setup, as highlighted in a study titled “Researchers working from home: Benefits and challenges." Published in PLoS ONE, researchers noted that “They [subjects] indicated that in the office they are better at sharing thoughts with colleagues, keeping in touch with their team, and collecting data, whereas at home they are better at working on their manuscript, reading the literature, and analyzing their data" (Aczel, et al., 2021).

Before implementing the trial run, you should disseminate your work-from-home policy, make the employees sign the acknowledgment receipt, and ask for their feedback. You can revise the policy accordingly and repeat the next processes.

During the trial run, you can use key performance indicators, set a passing grade, and measure your employee’s performance when working remotely. You can also make a comparison between their performance rates while working online and working onsite. From there, you can decide if you can and should allow an employee to work remotely.

Make sure employees have the essential work-from-home tools

You should decide the technological resources the company is willing to provide the employees. You can include this in the list of employee perks in your company. If you are in the process of transitioning, you can issue these resources while the employees are still onsite. Make sure the following are all set before allowing your employees to work from home:

Hardware. Your IT team can best determine the specifications of the gadgets that will match the tasks of each employee. Basic specs for a laptop typically include a 9th or 10th generation Intel i5, Intel i7, or AMD Ryzen 5, 8GB RAM, and SSD with at least 256 GB of storage. For the webcam, it’s best to acquire one with a 720p or 1080p resolution. Call center jobs typically issue noise-canceling headphones as well.
Software. All employees must be familiar with the communication channels, timekeeping systems, and project management applications that they will use while working from home. You may choose to conduct a training session for this. You should also ensure that your IT team is ready and easily reachable should technical problems arise.
Internet Connection. Some companies set a standard for internet service providers and speed. One of the most common ways to check this is to ask the employee to perform an Internet speed test via websites like Speedtest by Ookla and Fast.com and ask them to send screenshots of the result. According to Speedtest by Ookla, 2 Mbps of upload and download speed will suffice for those who only use emails and audio calls. However, 25 Mbps or higher may suit those who need to communicate with other remote employees via video conferencing.

Execute best practices when virtually onboarding new employees

A survey by Gallup (2019) found that only 12% of new hires feel satisfied with the onboarding process of their companies and only 29% feel ready to take on their new role after going through the process. According to that study, there are five questions that, when addressed, make the onboarding process exceptional:

“What do we believe around here?"
“What are my strengths?"
“What is my role?"
“Who are my partners?"
“What does my future look like here?"

Employees who agree that their onboarding process was exceptional are 2.6 times more likely to be satisfied with their jobs (Gallup, 2019). The first few months of a new employee are also the most important for them in determining whether they want to stay with the company for the long haul.

Schedule regular online meetings

Only 20% of employees are engaged in their work (Gallup, 2021). With the work-from-home setup, engaging employees can be much harder. Regular online meetups can help solve this problem. The frequency and length of these meetings will vary depending on company culture and priorities.

Here are some tips for conducting successful online meetings:

Inform the participants of the dress code prior to the meeting.
List the agenda items and set a time limit for discussing each.
Use productivity meeting icebreakers or Zoom games to increase employee engagement during the meeting.
End the meeting with action items.
Share the minutes of the meeting for everyone’s guidance.

How to Avoid a Tax Surprise with Your Work-from-Home Policy

Employees’ remote work locations may have business tax implications. For this reason, it is best to include rules and regulations around this matter in your work-from-home policy to avoid tax surprises. Make sure to take note of the following:

Ask your employees to report their location. What state your employees are working in may affect payroll or occupational taxes. Be prepared to handle these changes by including a phrase in your remote work policy that obliges your remote employees to report where they intend to work outside the office.
Prepare a system for reporting an employee’s change of address. Being up-to-date with an employee’s change of location is crucial for assessing whether they are still eligible to work from home. A system in place will allow both employers and employees to keep track of tax implications and hold records that are crucial to an audit.
Clearly state in your work-from-home policy the states where your employees are eligible to stay for remote work. This rule will be beneficial to both you and your employees. It will let both sides be aware of the tax implications associated with moving from one state to another. While limiting the employee’s location flexibility, this will also protect him or her from tax surprises. A survey by the Association of International Certified Professional Accountants (AICPA) revealed that 71% of Americans are unaware that working remotely in other states can impact their taxes. AICPA (2020) recommends that employees track the states where they are working remotely as well as the number of days they spent working in each state. They also recommend checking state tax withholding and consulting a licensed accountant if needed.

What Are the Most Common Challenges in Implementing a Work-from-Home Policy?

Companies often encounter hurdles such as safeguarding data integrity in dispersed networks, ensuring consistent communication across remote teams, and adapting IT infrastructures to handle increased digital demands. Addressing legal and compliance issues is critical, as regional regulations and tax implications can introduce complexities that necessitate regular reviews. Additionally, managing employee isolation and preventing burnout require structured support systems and clear channels for feedback. Implementing continuous training programs aimed at enhancing technological proficiency and leadership skills can help mitigate these challenges. For instance, employers may consider advanced career development opportunities, including programs like direct-entry MSN online, to bolster workforce resilience and adaptability.

How Can Ongoing Employee Training Bolster Remote Work Success?

Implementing structured employee training programs can bridge the skills gap and streamline remote work efficiency. Organizations should design modular e-learning sessions that align with specific job roles while also offering pathways for advanced professional development. Leveraging online educational resources enables workers to continuously upgrade their expertise, which in turn reinforces the overall productivity of remote teams. For instance, pursuing programs that are recognized for their flexibility and relevance—such as the easiest degree to get—can empower employees to keep pace with industry advancements. By integrating tailored training into the remote work policy, companies ensure that all employees have access to the tools required for sustained professional growth.

How Can Remote Employees Maintain a Healthy Work-Life Balance?

Establish clear boundaries between professional responsibilities and personal time by encouraging remote workers to designate a specific workspace and adhere to regular work hours. Recommend scheduling planned breaks and time off to prevent extended periods of inactivity and to boost cognitive recovery. Employers should consider integrating resources that promote ergonomic setups and mental health support, ensuring that employees have access to stress-management tools and counseling services when necessary. Additionally, fostering an environment where continuous professional growth is encouraged—such as exploring the highest paying masters degree to stay competitive—can provide employees with both career development and a renewed sense of balance.

How Can Remote Work Policies Enhance Career Development and Education?

A clear career development framework within a work-from-home policy can drive employee motivation and long-term success. Establish structured professional development paths that include tailored mentoring, access to accredited training programs, and clearly defined expectations for skill advancement. Incorporate learning solutions that span from short-term certifications to comprehensive online degree programs, such as a fast associates degree online. Outline mechanisms for tracking progress, set periodic performance reviews focused on upskilling, and incentivize achievements with professional growth opportunities. This strategic approach not only supports individual advancement but also cultivates a resilient, future-ready workforce.

How Can Remote Work Policies Support Employee Mental Health and Well-Being?

Remote work can blur the boundaries between professional and personal life, often leading to isolation and burnout. Employers should integrate clear guidelines for work hours, emphasize the importance of regular breaks, and provide access to mental health resources such as confidential counseling services and virtual wellness sessions. Establishing employee assistance programs and promoting physical activity through company-supported initiatives can create a healthier work environment. Regular reviews of these support structures ensure they remain effective and responsive to evolving employee needs. Additionally, investing in ongoing education—such as pursuing a 6 month associate degree—can enhance skills development and contribute to long-term career resilience.

How Do Work-from-Home Policies Address Legal and Compliance Challenges?

Employers must ensure that remote work arrangements comply with local, state, and federal regulations while safeguarding data and protecting employee rights. This includes establishing clear guidelines for data privacy, cybersecurity, and adherence to labor laws that may vary by jurisdiction. Companies should specify procedures for handling confidential information, outline protocols for incident response, and provide resources for legal consultation to adapt policies as regulatory landscapes evolve. Integrating external resources such as the most prestigious online universities can further support compliance education and maintain a robust legal framework for remote work operations.

Work-from-Home Policy Templates

Provided below are two work-from-home policy examples that you can use and modify to better match your organization. The first is designed for full-time remote work employees and the second for hybrid workers.

[Template 1]

Work-from-Home Policy for Employees of [Company]

This document outlines the rules and regulations that apply to employees who are working from a different location than our office at [Company Address].

Requirements. Employees must have the following to be eligible for full-time remote work:

[Technological Requirements]
[Work Environment Requirements]

Working Hours. Employees are required to time in and out via the company’s timekeeping system, [Name of Software Application], every [Start of Work] to [End of Work] on [Days of Work]. They are expected to be available for collaboration with coworkers via [Communication Platform] during these hours.

Performance and Evaluation. Employees are required to undergo a [weekly / bi-weekly / monthly] review of performance based on the key performance indicators for their roles. They will also be scheduled for a one-on-one session with their managers every [date/s] of the month. During these performance reviews, managers will provide constructive feedback and performance review comments to assess the employee’s progress, identify areas of improvement, and recognize achievements.

Equipment and Resources. Employees will be provided with the following equipment during their remote work period agreements:

[Equipment 1]
[Equipment 2]
[Equipment 3]

Technological support will also be provided by the [Company Name]’s IT department which employees can reach any time during work hours through [email / phone number].

Compensation Package. There shall be no changes on the employee’s compensation package. However, the [Company] reserves the right to review the existing compensation package should the employee decide to work outside of [state where the Company is located].

[Template 2]

Hybrid Work Policy for Employees of [Company]

This agreement applies to all employees of [Company] that are in a hybrid work setup or are alternately working home and in our office at [Company Address].

Work Schedule. Employees must strictly adhere to the hybrid work schedule indicated in their agreements. When working remotely, they are expected to record their work hours via [Software Application / Timekeeping System].

Remote Work Approval. Should employees want to request a change of hybrid work schedule, they must inform their supervisor at least [period of time, e.g. two weeks] before the expected implementation of such changes. They must indicate their reasons in the approval form.

Remote Work Expectations. Employees are expected to work [number of] hours per [time period]. They are expected to be available through various communication channels for collaboration from [Start of Work] to [End of Work].

In-Office Expectations. Employees are encouraged to participate in team-building activities during the time they will render in the office. They are expected to turn in the same amount of work as in their remote work hours.

Technological Resources and Support. Employees will receive the following equipment for use during their remote work:

[Equipment 1]
[Equipment 2]
[Equipment 3]

[Company Name]’s IT department will also provide them with technological support during this period.

Compensation Rate and Benefits. Employees will receive the same rate and benefits when working from home as when working in the office.

Some companies may find the need to monitor their remote team’s real-time location. This is true for remote field service and sales teams. In such case, you should also consider a GPS tracking policy template to avoid privacy violations.

How to Measure the Effectiveness of a Work-From-Home Policy

Measuring the success of your WFH policy is essential to ensure that it meets both employee needs and company goals. Here are some effective methods to evaluate the policy's impact:

Employee Productivity Metrics: Track key performance indicators (KPIs) such as task completion rates, project deadlines met, and overall output. Comparing these metrics before and after the policy was implemented can help determine its effect on productivity. You could also use productivity management tools like time-tracking software to assess efficiency.
Employee Feedback Surveys: Regular feedback from employees provides valuable insights into how they feel about the WFH policy. Surveys can address aspects like work-life balance, job satisfaction, communication effectiveness, and any challenges faced in the remote environment. Anonymized surveys can help employees share honest feedback without fear of retaliation.
Employee Engagement Levels: Measuring engagement is crucial for understanding how remote workers connect with the company culture. Monitor participation in virtual meetings, online forum collaboration, and company event attendance. High levels of engagement often correlate with the successful implementation of a remote work policy.
Employee Retention and Turnover Rates: One long-term indicator of the effectiveness of a work-from-home policy is employee retention. A successful policy should contribute to higher job satisfaction and lower turnover rates. Analyzing retention trends before and after the policy change can offer insights into employee commitment and overall policy success.
Manager and Team Leader Evaluations: Managers and team leaders can provide qualitative insights into the effectiveness of remote work by evaluating how well teams are performing. They can assess communication, collaboration, and individual performance. Regular one-on-one check-ins between managers and remote employees can help identify any gaps in performance or support.

Making a Remote Work Policy Work For Your Company

Both employers and employees can benefit from a remote work setup. The mere fact of having a policy and its implementation demonstrates that an employer trusts her or his employees to perform their work without surveillance. This trust showcases the leadership capabilities of executives and business owners and is foundational to any good employee-employer relationship.

A work-from-home setup also comes with several other practical benefits, such as increased employee productivity, lesser spending on office space, and a much wider talent pool, as discussed above.

Drafting a policy is only the first step to harnessing these benefits. Work-from-home policies need to go through a series of employer-employee consultations and revisions in order to match the needs of a company perfectly. With a continued effort to receive and implement feedback, you can make work-from-home policy work for your business.

How Can You Ensure Ongoing Relevance of Your Remote Work Policy?

Regularly revisiting your remote work policy is essential to keep pace with industry innovations and regulatory updates. Establishing periodic review cycles with input from diverse stakeholders can help identify emerging trends and necessary modifications without duplicating existing guidelines. Leverage data-driven insights, monitor new security protocols, and adapt operational procedures accordingly. Additionally, fostering continuous professional growth—through targeted courses and certifications such as the fast track bachelor degree online accredited—ensures both leadership and staff remain competitive and well-prepared to adjust to future challenges.

Key Insights

Increased Productivity: Many studies and surveys indicate that working from home boosts productivity, especially for knowledge workers, by reducing common office distractions and allowing employees to manage their time and work environment effectively.
Cost Savings on Office Space: Remote and hybrid work setups can significantly reduce or eliminate the need for physical office space, leading to substantial savings on rent and utilities.
Access to a Wider Talent Pool: Offering work-from-home options can attract highly qualified candidates from diverse geographical locations, expanding the talent pool beyond local boundaries.
Clear Policy Structure: A well-defined work-from-home policy should include terms of eligibility, working hours, compensation adjustments, technological support, request processes, performance metrics, availability standards, data security regulations, and feedback mechanisms.
Implementation Strategy: Successful implementation involves trial runs, ensuring employees have the necessary tools, conducting virtual onboarding, scheduling regular meetings, and continuously revising policies based on feedback.
Tax Implications: Employers and employees need to be aware of the tax implications of remote work, including reporting work locations and understanding state-specific tax rules to avoid surprises.

FAQ

Why should my company implement a work-from-home policy? Implementing a work-from-home policy can increase employee productivity, reduce office space expenses, and attract a wider talent pool. It also provides clear guidelines for both employers and employees, ensuring that remote work is structured and efficient.
How do I determine which employees are eligible for remote work? Eligibility can be based on job roles and responsibilities. Some roles may be suited for 100% remote work, while others may require on-site presence. Establish clear criteria and possibly a hybrid schedule where a percentage of employees work from home and the rest work in the office.
What should be included in the work-from-home policy regarding working hours? The policy should specify whether employees have flexible hours or must adhere to a standard schedule. It should also detail the timekeeping system used to track work hours.
How can I ensure that remote employees have the necessary tools and resources? Provide a list of required technological support and resources, such as internet service fees and work-from-home gadgets. Ensure employees have access to essential hardware, software, and IT support to perform their tasks efficiently.
What are some best practices for virtually onboarding new employees? Make sure to address key questions about company beliefs, employee strengths, roles, partners, and future prospects. Regular check-ins, clear communication, and providing the necessary tools and training are essential for a smooth virtual onboarding process.
How often should we hold online meetings to keep remote employees engaged? The frequency of meetings depends on company culture and priorities. Regular online meetings can help maintain engagement, set clear agendas, use icebreakers, and end with actionable items to ensure productivity.
What are the tax implications of remote work that employers and employees need to consider? Remote work can affect payroll and occupational taxes depending on the employee’s location. Employees should report their work locations, and employers should have a system in place to track these changes to manage tax obligations effectively.

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