According to the Bureau of Labor Statistics, remote work or “working from home” has existed in some form at least since the 1960s. However, it didn’t really start skyrocketing until the pandemic, when efforts to bring COVID-19 under control emptied offices.
The Federal Reserve Bank of San Francisco reported minimal long-term impact on productivity, though whether it boosted or lowered productivity and to what degree is industry dependent.
In some jobs like customer service representatives who normally work in call centers, productivity increased by 0.08% to 0.09% for each percentage increase in remote workers. This marginal increase in productivity suggests that for many industries, work-from-home models doesn’t seem to materially lower productivity in a meaningful way.
However, remote work produces lower employee turnover and increased employee satisfaction, which can decrease hiring costs for companies. Pushback to returning to the office included employees jumping to other employers who are more tolerant of their employees working remotely, particularly for those with in-demand skill sets, like talented software engineers and data scientists.
Employee Perspectives
According to a recent survey conducted by Forbes, 83% of remote workers say they like avoiding the commute; 82% like the flexibility of remote work. On the other hand, 59% reported that they overworked and didn’t take breaks during their workday.
For some employees, working from home has blurred the lines between personal and professional life, creating challenges in maintaining a healthy work-life balance. This issue can be alleviated by exploring alternative work environments, such as cafes or coworking spaces like WeWork, which provide a clearer distinction between home and office settings.
However, this solution may not be practical for remote workers who are single parents of young children or who face other challenges that make working outside the home difficult.
Several companies have faced significant pushback to return to office orders, including Amazon, Blizzard Activision, and even some departments of the federal government.
Instead of asking why remote work is significant enough to justify job changes or strikes, it may be more effective to reframe the question: Should employees have the option to choose between office, hybrid, or remote work? This shift in perspective acknowledges that there may be no “one-size-fits-all” solution when it comes to where white-collar employees should work.
Some employees may prefer a return to office to create a clearer boundary between their professional and personal lives.
Return of Office Impact on Career Progression
Extroverts, in particular, may be more inclined to return to the office, finding the isolation of working from home—and even nearby cafés—unsatisfying. They often thrive in office social dynamics, where their interpersonal skills can play a significant role in advancing their careers. However, without the stage and visibility to demonstrate those skills, their career advancement can be jeopardized.
Introverts, on the other hand, may prefer remote work as it relieves them from the pressures of office politics and social expectations. In a remote environment, their performance and results can stand out more clearly, often receiving more recognition, as output becomes the primary measure of success—something that can be overshadowed by office politics in a traditional workplace setting.
Remote work also benefits employees with disabilities who may encounter challenges commuting to the office, navigating office spaces, or dealing with the social dynamics of a traditional workplace. Similarly, individuals without reliable transportation or in cities with limited public transit may struggle with the daily commute.
Working in an office may be a necessity for employees handling sensitive or confidential information, such as healthcare workers dealing with patient data. Regulators are strict when it comes to HIPAA violations. A breach caused by accessing data from a café or home office could result in severe consequences for the business.
The Hybrid Model
The hybrid model can be ideal for employees who don’t need to be in the office full-time but still require occasional access to office equipment. For instance, a graphic designer might need to print documents. An IT professional may need to reconfigure a router for the accounting department before returning to remote work. Additionally, some hybrid workers may come in for tasks involving sensitive information, where telework could pose cybersecurity risks.
Moreover, hybrid work models don’t carry the same benefits for the business from an operational perspective. One upside for businesses adopting a remote model is the ability to save on overhead expenses such as large office leases, custodial staff, even keeping the office supplied with things like coffee and toilet paper. Under a hybrid model, businesses still incur the majority of these expenses.
As businesses issue return to office orders and workers navigate the future of work, the ability to choose the best environment for productivity and well-being will be crucial in shaping the workforce of tomorrow.
This article is for informational purposes only and does not constitute financial advice. The views and opinions expressed are those of the author. They do not represent recommendations for any specific financial actions or investments.
