Working from Home vs. Office – What the Evidence Tells Us
As companies navigate the post-pandemic landscape, the debate over where desk-based employees work best has come to the forefront. Amazon’s recent decision to order its staff back to the office five days a week stands in stark contrast to the UK government’s push for strengthening rights to flexible working, including working from home.
Hybrid working
The tech giant believes that having employees in the office full-time will foster better invention, collaboration, and connection. However, the government links flexibility to improved performance and a more productive, loyal workforce. So, what does the evidence tell us about how we work best?
Studies conducted by Microsoft during the pandemic suggest that remote workers tend to collaborate more with existing networks of colleagues and build fewer “bridges” between different networks. There was also a drop in real-time communication, with more emails and instant messages being sent instead, potentially making it harder to convey and understand complex information.
On the other hand, a survey by the Chartered Institute of Personnel and Development (CIPD) found that while a third of senior decision-makers struggled with reduced staff interaction and cooperation, more than 40% of managers said there was more collaboration when people were working from home.
A study by Stanford University researchers on China’s biggest travel agency, CTrip, found that workers were 13% more productive when working from home, mainly due to fewer breaks, sick days, and a quieter environment. However, these home-workers were still spending one day a week in the office, suggesting that some office time could bring additional benefits.
Several companies, such as Goldman Sachs, JPMorgan, Morgan Stanley, Tesla, and SpaceX, have also backed workers returning to the office full-time. However, this approach has not been without consequences, with SpaceX losing 15% of its senior-level employees following the implementation of a full-time office policy.
The pandemic has undoubtedly changed work routines, and many individuals, including those with disabilities, have reported feeling more productive and having better control over their health and well-being when working from home.
Despite the varying conclusions of different studies, an umbrella review of home working suggests that, on the whole, working from home boosts productivity. The debate between the government and Amazon essentially boils down to whether or not some home working should be part of the mix, with Amazon believing it shouldn’t.
According to the CIPD, the benefits of hybrid working include a better work-life balance, greater ability to focus, more time for family and friends, saved commuting time and costs, and higher levels of motivation and engagement. A study published this year found that a Chinese firm that adopted hybrid working reduced the rate at which employees quit by a third.
In the UK, while the number of people exclusively working from home is falling, hybrid working continues to rise, running at 27% of the working population. Gallup suggests that despite highly publicised moves by firms to get employees back in the office, the underlying trend is that the future of office work is hybrid.
Ultimately, the evidence suggests that the optimal approach may vary depending on the specific needs and nature of each organisation. However, the potential for increased productivity and employee well-being through flexible working arrangements cannot be ignored.
