When it comes to work-life balance, a crucial aspect of employee well-being, remote work seems to be making a positive impact. Seventy-one percent of remote workers stated that remote work helps balance their work and personal life [9]. However, it’s important to acknowledge that 12% reported that it hurts their work-life balance, indicating that remote work may not suit everyone. Sixty-five percent of workers desire to work remotely all the time, highlighting the popularity of this work model [6]. At the same time, 32% prefer a hybrid schedule, which combines the best of both worlds—flexibility from remote work and collaboration opportunities from in-office work. Productivity is another significant factor that influences workers’ remote work preferences.
How to Measure Productivity of an Employee Working from Home: 3 Pillars of Remote Team Success
Remember that, in 2022, Millennials were the largest generation in the workforce and tended to have a completely different outlook on “work” compared to previous generations. If you are looking to implement and maintain a robust remote workforce within your organization, there are a few items to consider. Katherine Haan is a small business owner with nearly two decades of experience helping other business owners increase their incomes. This could be a consequence of the qualities of roles that necessitate postgraduate qualifications, which usually involve cognitive labor that can be done anywhere. Recruiters, project managers, technical writers, product marketing managers, customer success managers and graphic designers also feature prominently on the list of remote roles. The wide variety of these roles signifies the expanding scope of remote work across different fields.
COVID-19 may propel faster adoption of automation and AI, especially in work arenas with high physical proximity
We find that a markedly different mix of occupations may emerge after the pandemic across the eight economies. Compared to our pre-COVID-19 estimates, we expect the largest negative impact of the pandemic to fall on workers in food service and customer sales and service roles, as well as less-skilled office support roles. Jobs in warehousing and transportation may increase as a result of the growth in e-commerce and the delivery economy, but those increases are unlikely to offset the disruption of many low-wage jobs. In the United States, for instance, customer service and food service jobs could fall by 4.3 million, while transportation jobs could grow by nearly 800,000. More than half of employees told us they would like their organizations to adopt more flexible hybrid virtual-working models, in which employees are sometimes on-premises and sometimes working remotely. A hybrid model can help organizations make the most of talent wherever it resides, lower costs, and strengthen organizational performance.
Companies will invest in the right tools and training
One major concern most employers had for working remotely was a loss of productivity. The report also emphasized the crucial role of technology in facilitating remote work. As more work from home, the demand for advanced collaboration tools, secure communication platforms and reliable internet connections will grow. The future of remote work will heavily rely on developing and implementing innovative technologies to support a seamless and efficient virtual work environment. Understanding these preferences is vital for organizations as they design their remote work policies.
Remote workers on average earn $19,000 more than in-office workers
It’s here to stay, and knowing how to work successfully with other people who are working remotely—whether they are fellow employees or freelancers—is going to be an increasingly important career skill going forward. The report predicts that 36.2 million Americans will be remote five years from now, up from 16.8 million before the pandemic. Rather than forcing workers to choose whether they want to work remotely or in an office, a hybrid approach gives workers autonomy to decide the work location that suits them best – with the acknowledgement that it could change. They may choose to work in the office every now and then or from their homes a few days per week.
Remote workers, in comparison, make an average of $19,000 more than those in the office [1]. Remote workers make an average of $74,000, while in-office workers typically have an average future of remote working salary of $55,000. A closer look at the demographics of remote work in 2023 offers fascinating insights into who is embracing this work model and how it’s affecting their livelihoods.
In describing the hybrid model of the future, more than half of government and corporate workers report that they would like to work from home at least three days a week once the pandemic is over. Across geographies, US employees are the most interested in having access to remote work, with nearly a third saying they would like to work remotely full time. A McKinsey survey of office space managers conducted in May found that after the pandemic, they expect a 36 percent increase in worktime outside their offices, affecting main offices and satellite locations. This means companies will need less office space, and several are already planning to reduce real estate expenses. Moody’s Analytics predicts that the office vacancy rate in the United States will climb to 19.4 percent, compared to 16.8 percent at the end of 2019, and rise to 20.2 percent by the end of 2022.
- Remote work also presents unique opportunities in the face of a crisis, such as a natural disaster or an epidemic.
- Given the expected concentration of job growth in high-wage occupations and declines in low-wage occupations, the scale and nature of workforce transitions required in the years ahead will be challenging, according to our research.
- According to CXC Global, U.S.-based multinational corporations employed over 14 million international employees in 2015, and the numbers have only increased.
Remote work has also freed people from some of the aspects of work they don’t like. For instance, 70% of hiring managers pointed to the reduction of non-essential meetings. There have also been improvements in how people work, with 60% citing more flexible schedules and 54% noting the reduction in workers’ commutes. That’s good news for both traditional workers and freelancers who like working at home—or need to do so to manage family responsibilities.
Still, some businesses are making the necessary investments to support remote work. As the prevalence of working from home continues to rise, businesses and employees must be prepared to adapt and be flexible. By addressing the challenges and embracing the benefits of remote work, we can pave the way for a more productive and sustainable future of work. To ensure success, businesses and employees must embrace new ways of working and collaborating. Companies should consider investing in required infrastructure and technology, creating policies supporting remote work and offering training programs to help employees transition to a remote or hybrid work environment. Now, well into the pandemic, the limitations and the benefits of remote work are clearer.
Would you like to stay ahead of other employers by allowing remote work while also ensuring great business results? Read this short guide to find out how to measure the productivity of an employee working from home for maximum efficacy. Relying on software for monitoring computer activity, you can start to build a data hub that grows with your company and informs performance, productivity, and provides workforce analytics insights. Because C-suite executives will have less to go on when assessing employees within their company.
For companies that were able to let employees do their jobs outside of the office, working remotely wasn’t a choice – it was a mandate when cities across the globe shut down in the wake of the pandemic. Additionally, using digital tools like Slack or Microsoft Teams for real-time messaging or setting up anonymous feedback channels can provide opportunities for employees to share their thoughts and ideas more openly. Studies show that working from home yields numerous benefits for both individuals and their organizations, most notably in the form of enhanced productivity and engagement. But when all or most employees are remote, challenges arise for communication, knowledge sharing, socialization, performance evaluation, security, and more. Two ways businesses historically have controlled cost and mitigated uncertainty during recessions are by adopting automation and redesigning work processes, which reduce the share of jobs involving mainly routine tasks. In our global survey of 800 senior executives in July 2020, two-thirds said they were stepping up investment in automation and AI either somewhat or significantly.
So far, there is scant clarity—and widespread contradiction—about the productivity impact. Some 41 percent of employees who responded to a McKinsey consumer survey in May said they were more productive working remotely than in the office. As employees have gained experience working remotely during the pandemic, their confidence in their productivity has grown, with the number of people saying they worked more productively increasing by 45 percent from April to May. We estimate that between half and one-quarter of his job can be done remotely. To make a floral designer’s job more remote would require dividing his various tasks among all employees in a flower shop.
While the structure of remote work may continue to evolve, this flexible business model is here to stay. Remote options may continue to grow as technological advances such as AI are able to play a major role in managing remote staff. As more employees expect remote work options, more companies are investing in the tech and systems needed to support working from home. Employees with young children are the most likely to prefer flexible work locations, with only 8 percent suggesting they would like to see a fully on-site model in the future. Employees without children under 18 are nearly three times as likely to prefer on-site work, but the majority still prefer more flexible models.
Since then, the WFH model has become standard operating procedure for millions of Americans. In 2021, it was found that nearly three times more people were working in remote positions than in 2019. According to a 2021 American Community Survey (ACS) one-year estimate released by the U.S. Census Bureau, 17.9% of Americans adopted the WFH environment between 2019 and 2021. These demographic insights serve as a snapshot of the current remote work landscape. Understanding these patterns can help employers design remote work policies that cater to their workforce’s needs and preferences, while also bridging any gaps in accessibility and pay.
One reason remote work seems to have staying power is that many of us have adjusted to it. Among managers, 68% said it’s going more smoothly now than at the start of the pandemic. Upwork Chief Economist Adam Ozimek says many companies have discovered the value of remote work …
A survey of 248 US chief operating officers found that one-third plan to reduce office space in the coming years as leases expire. Another trend that showcases the preference for remote work is the willingness of employees to accept financial trade-offs. A surprising 32% of hybrid workers state they would consider a pay cut to work remotely full time [14].
To determine the overall potential for remote work for jobs and sectors, we use the time spent on different activities within occupations. Finance and insurance has the highest potential, with three-quarters of time spent on activities that can be done remotely without a loss of productivity. Management, business services, and information technology have the next highest potential, all with more than half of employee time spent on activities that could effectively be done remotely (Exhibit 2). These sectors are characterized by a high share of workers with college degrees or higher.
Surveys and studies offer revealing insights into workers’ preferences and how remote work impacts their lives. About 16% of companies are already fully remote, operating without a physical office [5]. These companies are pioneers in the remote work paradigm, highlighting the feasibility of such models and paving the way for others to follow. According to Upwork, by 2025, an estimated 32.6 million Americans will be working remotely, which equates to about 22% of the workforce [2].
I will also discuss strategies for organizations to effectively manage remote teams and maintain productivity. Policymakers could support businesses by expanding and enhancing the digital infrastructure. Even in advanced economies, almost 20 percent of workers in rural households lack access to the internet.
Companies should prepare for increased remote workers if they haven’t already. If not, they may risk falling behind their competitors and missing promising young talent. Less money spent on transportation, lunch, and wardrobes suitable for the office may be shifted to other uses. Sales of home office equipment, digital tools, and enhanced connectivity gear have boomed. Many physical or manual activities, as well as those that require use of fixed equipment, cannot be done remotely. These include providing care, operating machinery, using lab equipment, and processing customer transactions in stores.
Microconnectivity policies, meanwhile—from small team events to a listening and response strategy—were top policies for more than a quarter of all respondents. In fact, more than a quarter of those surveyed reported that they would consider switching employers if their organization returned to fully on-site work. While the benefits of remote work are evident, the WFH research report also acknowledged challenges. Some employees may experience isolation, difficulty maintaining a healthy work-life balance or struggle with creating a productive work environment at home. However, in terms of previous generations, like Baby Boomers, remote work is considered “nice,” but it’s not a requirement. Previous generations are more accustomed to and don’t necessarily mind working in an office.
Read more about supporting open communication, setting defined expectations, and fostering team spirit. Implement wellness initiatives and support mental health to maintain a healthy and productive workforce. Equip employees with the tools they need to collaborate efficiently and securely.
This is marginally better than Buffer’s 2019 report, in which 75 percent said their employers would not pay for internet service. As the desire and expectation of working remotely increase significantly every year among the workforce, companies may be more likely to support remote-friendly policies. However, many companies continue to resist this work trend for various reasons. Some business owners may fear a lack of productivity in their employees, while others haven’t invested in teleconferencing and telework tech to support remote workers.
Lab technicians and pharmacists work in the indoor production work arena because those jobs require use of specialized equipment on-site but have little exposure to other people (Exhibit 1). Adopting a remote working policy can also save companies money by removing the need for expensive office space (or satellite offices) while allowing workers the freedom to create their own schedules and work from wherever they please. When we moved to the hybrid work environment, we identified all the resources available for employees to connect with each other regardless of where they were located. Our training materials outlined which resource was most appropriate for the working scenario an employee might encounter. Our collaboration tools include video conferencing software, instant messaging, email, phone and text messaging since our employees are eligible for cell phone reimbursement. Our company all-hands meeting has also moved to a hybrid model with live and virtual attendance.
As many as 60% of companies now rely on such tools to track remote employees [12]. While these tools can aid productivity and accountability, they also pose privacy considerations, highlighting the need for transparency and consent in their use. Embracing remote work comes with its own set of benefits and challenges, impacting both employees and employers in various ways. Understanding these aspects can help in creating effective strategies for managing remote work.