What is a Home Based Employee? A Complete Guide

Working from home is becoming increasingly popular, both for employees and employers One type of remote work arrangement is the home based employee. But what exactly does this term mean?

Definition of a Home Based Employee

A home based employee is someone who works for a company remotely, performing their standard job duties from their personal residence instead of commuting to a central office location.

While the employee works from home, they are still considered a regular employee of the company. The home serves as their alternative workplace. Home based jobs tend to be full-time with standard hours and scheduling.

Some key aspects of home based employees

  • They are hired directly by the company as W-2 employees, not independent contractors.

  • They perform regular work duties remotely that would normally be done in-office.

  • They work full-time or part-time hours set by the employer.

  • They use their own home as their primary place of work.

  • They may occasionally commute into a main office location.

  • They are provided equipment and technology by their employer to do their job off-site.

  • They are subject to the same management, policies and procedures as on-site staff.

Why Companies Hire Home Based Employees

There are a few key reasons why employers utilize home based employees as part of their workforce:

  • Saves office costs – With employees working remotely, companies can save on expenses like office space, equipment, utilities, parking etc.

  • Flexible scheduling – Employees may have more flexible schedules since they don’t have to commute. This can improve work-life balance.

  • Wider talent pool – Employers can recruit talent from a broader geographic area.

  • Increased productivity – Some studies show remote employees have higher productivity with fewer distractions.

  • Business continuity – Employees can more easily work through disruptions like weather events or pandemics.

  • Environmental benefits – Remote work reduces carbon emissions from commuting.

  • Competitive edge – The option to work from home can give employers an edge in attracting top talent.

For these reasons, many employers see value in having some home based employees as part of their overall teams.

Pros and Cons for Employees

Working as a home based employee also has some key pros and cons from the employee perspective:

Pros

  • No commute time or costs
  • More flexibility with when and where you work
  • Reduced distractions leading to higher focus
  • Comfort of working from home
  • Potential tax deductions for home office

Cons

  • Lack of social interaction with co-workers
  • Difficulty unplugging from work at end of day
  • Feelings of isolation
  • Limited career development and visibility
  • Out of sight, out of mind for promotions
  • Distractions from home life

Employees will weigh these factors when considering a home based position. The right fit depends on one’s work style, personality and preferences.

Types of Jobs for Home Based Employees

While it started out limited to certain roles, the possibilities for home based jobs have expanded over the years. Here are some examples of positions commonly held by home based employees:

  • Customer service representative
  • Sales representative
  • Accountant
  • Medical biller/coder
  • Web developer
  • Graphic designer
  • Writer/editor
  • Recruiter
  • Virtual assistant
  • Call center agent
  • Teacher/tutor
  • Nurse/health consultant
  • Data entry clerk
  • Bookkeeper
  • Translator
  • Computer programmer
  • Consultant

Generally speaking, jobs that involve working independently, interacting virtually with colleagues and customers, and focusing on computer and phone tasks are best suited to a home office setup.

Roles that require on-site equipment, physical collaboration or hands-on work are less likely candidates for remote work. But technology continues to expand possibilities for home based roles.

Equipment Provided by Employers

For a home based employee arrangement to work, the employer must provide certain equipment and technology:

  • Laptop computer – An up-to-date laptop enables access to company systems and networks. Desktop computers can also be supplied if preferred.

  • Phone – A cell phone may be provided so the employee is reachable on the company’s dime. Alternatively, the employee uses their personal cell for work calls.

  • Hotspot device – Ensures access to fast, reliable internet from home. Optional if the employee has their own robust WiFi.

  • Software licenses – Remote desktop tools, video conferencing subscriptions, SaaS programs and any other work programs required.

  • Printers/scanners – Supplies for processing physical documents from home. All-in-one printer/scanner/copier combos are popular.

  • Office supplies – Pens, notebooks, staplers, paper and other basics to equip a home workspace.

  • Furniture – Employers sometimes provide desks, chairs and other furniture if space permits shipping.

Ideally, employers cover phone, internet and utility costs associated with home based work. Providing the right technology and infrastructure ensures remote employees can perform their role seamlessly from home.

Managing Productivity and Oversight

A common concern with home based employees is how to ensure productivity without being able to physically oversee the worker. Some tips for managers of remote employees:

  • Set clear expectations and deadlines for tasks/projects
  • Maintain frequent communication via video chat, instant messaging, email
  • Have daily check-ins or weekly one-on-one meetings
  • Track work output and metrics closely
  • Provide opportunities for collaborative work
  • Encourage overcommunication among teams
  • Listen closely for signs of blocking issues
  • Leverage workload management and project software
  • Reward results and outcomes rather than hours worked
  • Build in social interactions, even if just virtually

With the right technology, communication practices and performance management in place, home based teams can thrive. It takes an adjustment from traditional oversight methods but pays dividends.

Legal and Regulatory Considerations

As with any HR policy, employing home based staff comes with some legal considerations:

  • TaxDed auctions – If employees use spaces in their home exclusively for work, they may qualify for home office tax deductions.

  • Zoning laws – Local zoning rules may prohibit running a business from home. But many exceptions exist for remote work.

  • Data security – Sensitive company data on remote devices must be properly secured per regulations.

  • Wage and hour laws – Normal pay rules apply for hourly home workers. Time tracking ensures compliance.

  • OSHA – Employers retain responsibility for a safe workspace free from hazards.

  • Worker’s compensation – Injuries sustained while working at home are covered.

  • Anti-discrimination laws – Remote work opportunities must be offered equitably.

HR policies should be updated to reflect how these laws and regulations apply to home based staff. Proper compliance reduces legal risks.

Best Practices for Success

If done thoughtfully, a home based workforce strategy can benefit both employers and employees. Some best practices include:

  • Outline clear remote work policies and expectations
  • Foster a collaborative, transparent culture
  • Provide home based employees equal resources and opportunities
  • Establish structured onboarding for new remote workers
  • Invest in communication and productivity technologies
  • Collect regular feedback from remote employees
  • Encourage healthy work-life balance and boundaries
  • Facilitate connections between co-workers with team events

Following these tips will lead to an engaged, thriving remote workforce that feels valued and aligned with the company mission.

The Future of Home Based Work

Workplace flexibility is likely here to stay. Forward-thinking companies recognize the benefits of enabling employees to perform their best work wherever they are most productive and comfortable. Providing opportunities for home based work demonstrates a commitment to both employee satisfaction and the organization’s success. With the right policies and infrastructure, home based employees can become a seamless extension of the on-site team.

what is home based employee

How do people work remotely?

There are a variety of ways in which people can work remotely. That’s the beauty of remote work – people can choose to work in a way that makes the most sense for their lives.

For example, some people have the opportunity to work remotely for the majority of the working week, but have to commute to in-person meetings at the office one day a week. On a typical day, these remote employees work from their home offices or nearby cafés and can work from their company’s office when it’s necessary.

Others rely on coworking spaces to be the spots where they can get the job done. Coworking spaces act as hubs of productivity, community, and technology, offering great network connectivity and opportunities to meet others who work in a multitude of industries. They can be utilized by people with full-time jobs, freelance careers and even entrepreneurs who want to rent out an office space for themselves or their small staff. You might even say that coworking spaces are a halfway point between a traditional office and a nontraditional workspace, giving you the comfort of working from home and combining it with the professional amenities and networking opportunities that you’d find in a corporate environment. Whether remote employees choose to take advantage of a coworking space in their home city, or obtain a membership with a coworking collective that has locations around the world, they reap the benefits of having location flexibility.

Some remote workers take full advantage of the opportunities that a remote working lifestyle gives them. On top of being able to set their schedules so that they are able to work whenever they are most productive or creative, some remote employees decide to leave their traditional routines behind and hit the road. In an effort to open their minds, achieve greater global understanding and expand their professional network into a worldwide community, they take their remote work to different countries around the world, either through work and travel programs or DIY travel arrangements.

Why do people work remotely?

Now that you understand what remote work is and how people make it happen everyday you might be wondering: why? Why would someone choose to work outside of an office environment and, better yet, why would their boss let them?

There are a multitude of benefits to remote work for both employees and employers, ranging from increased productivity to happier, healthier workers. Let’s break down a few of the advantages:

What is remote work?

Remote work is a working style that allows professionals to work outside of a traditional office environment. It is based on the concept that work does not need to be done in a specific place to be executed successfully.

Think of it this way: instead of commuting to an office each day to work from a designated desk, remote employees can execute their projects and surpass their goals wherever they please. People have the flexibility to work from anywhere and design their days so that their professional and personal lives can be experienced to their fullest potential and coexist peacefully.

There has been a cultural paradigm shift in what society deems to be an appropriate workplace – and remote work has capitalized off of that newfound freedom.

Employee-Based Work from Home + Open International Jobs

What is a home based employee?

What is a home-based employee? A home-based employee is a professional who fulfills their job responsibilities from home. Instead of traveling to and from a physical site for their employer, such as an office building, the employee submits assignments and interacts with their coworkers from a virtual environment.

What is a field/home based employee?

Field/home-based employees are required by the agency or university to work outside the agency or university worksite based on the service they provide or the nature of work. The work of field/home-based employees is mostly performed by traveling to various locations, within a region or working from home.

What is a home based worker?

HR Definitions & Examples | MightyRecruiter A home-based worker is an employee who performs his or her job from home rather than a designated workspace at an employer’s site. Home-based workers perform their responsibilities and tasks from home and usually stay in contact with the employer via phone or the internet.

How do home-based workers get to work?

Home-based workers perform work duties at home, rather than travel to a separate workplace. The American Community Survey includes a question asked of those ages 16 and over who were employed and at work in the previous week, on the method of transportation usually used to get to work.

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