Economic Effectiveness of Remote Work in Organizations of the Public Utility Sector

Abstract

In the recent years, remote work has become a response to the needs of modern economies where private and public institutions operate and create networks of connections. The public utility sector, which refers to an activity, good, or service that brings benefits or collective interests to the residents of a country, is among them. With the widespread use of remote work, there is a need to identify whether and under what conditions remote work is economically effective in public utility sector organizations. However, public utility sector organizations are in an extraordinary situation because their primary goal, the current and continued satisfaction of social needs, partly determines innovative behaviour. The absence of traditional market drivers, such as profit orientation and private ownership, hinders the ability of public utility sector organizations to adapt to changing conditions. As a result, implementing remote work effectively presents a significant challenge for these organizations. This study, therefore, focuses on evaluating the economic effectiveness of remote work within the public utility sector. In conclusion, even if remote work is a cost-effective method for public utility services and decreases indirect employee costs, it has yet to be incorporated successfully. The results indicate that the economic effectiveness of remote work falls short of the desired level. Therefore, public utility services need to strengthen infrastructure, innovate their remote systems, invest human capital and reorganize their strategies regarding allocating resources, technology and management categories to enhance economic effectiveness when operating remotely.