The COVID-19 pandemic forced many companies to embrace remote work out of necessity. With infection rates high, offices closed and employees worked from home in record numbers. Now, over two years later, companies are rethinking remote and hybrid work models. Is the work from home era coming to an end?
Did productivity actually increase with remote work?
When the pandemic hit, many business leaders worried that productivity would plummet if employees worked from home. However, remote work actually led to an increase in productivity for many companies. In a survey conducted by Enterprise Technology Research, over 75% of respondents said their productivity increased when working from home during the pandemic. With fewer distractions and interruptions, employees could focus more effectively on their work. Virtual meetings also tended to be more efficient than in-person meetings. However, some challenges arose as well. Communicating and collaborating virtually required adaptation for both managers and employees. Some workers reported feeling isolated and detached working at home alone for so long. Still, the productivity gains outweighed the struggles for most organizations.
Did company costs decrease with remote work?
Working remotely yielded cost savings for many companies. Commercial office spaces are one of the biggest expenses for most businesses. Having fewer employees in the office at least some of the time allowed companies to reduce their real estate costs. According to Global Workplace Analytics, businesses save an average of $11,000 per year for every person who works remotely half the time. Companies were also able to scale back on-site amenities with fewer people coming into the office every day. Reduced commuting translated into lower parking costs and fewer company cars for some organizations. While remote work led to increased technology costs, the overall savings outweighed the expenses.
What challenges did companies face with remote work?
Despite the benefits, remote and hybrid work also created some challenges that companies grappled with:
- Collaboration – Communicating and collaborating virtually made some tasks more difficult.
- Company culture – Maintaining company culture, social connections, and a sense of team was harder remotely.
- Technology – Managing a remote workforce required expanded technology solutions.
- Productivity monitoring – Measuring productivity proved more difficult without being able to physically observe employees.
- Onboarding – Orienting new hires virtually posed challenges for managers.
- Work-life balance – With work and home blending together, maintaining boundaries became an issue for some remote employees.
How did employees adapt to remote work?
The shift to remote work represented a major change for many employees:
Pros | Cons |
---|---|
No commute | Lack of social interaction |
More flexibility | Difficulty unplugging |
Reduced distractions | Limited space or supplies |
Comfort of home | Family interruptions |
While employees appreciated the scheduling flexibility, lack of commuting, and comforts of home, some struggled with limited space, distractions, and feelings of isolation. Adapting to remote collaboration and communication posed a challenge as well. Still, a Future Forum Pulse study showed 76% of workers wanted flexibility in when and where they work. Many employees found benefits in being able to blend remote and office work.
What are employee preferences for the future of work?
With some experience working remotely during the pandemic, employee preferences around the future of work emerged:
- Hybrid model – Most want a combination of remote and in-person work
- Flexibility – Employees crave flexibility in when and where they work
- In-person connection – Many want regular in-person time with co-workers
- Focus time – Employees want the option of working from home for focus time
- Work-life balance – Remote work helped some achieve better work-life integration
Rather than fully remote or fully in-office, a hybrid model provides the versatility employees seek. Staggered team days allow for connection, while other days remote enable focus time. Leaders should give employees flexibility within a hybrid framework.
How are company leaders responding?
Organization leaders are taking a variety of approaches in response to remote work trends:
- Fully remote – Some companies plan to remain fully distributed moving forward.
- Fully in-office – A small minority of leaders want to return to full-time in-office work.
- Hybrid – Most plan to adopt some form of a hybrid remote/in-office model.
- Flexible – Many are giving individual teams or employees flexibility to shape their arrangement.
According to Gallup research, 45% of business leaders want to take a hybrid approach long-term. Leaders must balance employee desires for flexibility with the need for in-person collaboration, culture, and onboarding. Those taking a flexible stance allow teams to determine what works best for their needs.
Return to office timelines
Timelines for returning to the office vary significantly by company. According to Forrester research:
- 2021 – 24% of companies required employees to return to the office in 2021
- 2022 – 41% are requiring a return to office in 2022
- 2023 – 23% are waiting until 2023 or later to mandate a return
- No timeline – 12% have not set a return date
Factors like workforce demographics, company culture, business needs, and geos will impact timelines. Younger workers tend to favor remote work more than older generations. Still leaders must balance employee desires with business requirements.
Does real estate downsizing make economic sense?
With hybrid or remote models, what real estate footprint makes the most economic sense? Leaders are reevaluating needs:
- Cost savings – Lower real estate costs offer economic benefits
- Tax incentives – Some states and cities offer tax breaks to attract more remote workers
- Hubs – Smaller hubs allow employees to work closer to home
- Co-working – Arrangements enable flexibility in space needs
According to an EY survey, 23% of companies plan to downsize office space over the next year. However, reducing too quickly can be risky if needs change. Taking a phased, flexible approach is often prudent. Offering co-working memberships enables companies to adapt.
What are the risks of permanent remote work?
While work from home offers benefits, there are also risks to consider:
- Culture erosion – Maintaining cultural connection is harder remotely
- Collaboration – Spontaneous interactions and teamwork suffers
- Innovation – Creative collaboration declines without in-person work
- Mentorship – Younger workers have fewer opportunities to learn from experienced employees
- Engagement – Employees can feel less connected and engaged working at home
Fully remote models make preserving culture, collaboration, and connection more challenging. Leaders aiming for permanent remote may need to make significant adaptations to address these risks.
What challenges do leaders face in hybrid models?
Hybrid remote/in-office models also come with leadership challenges:
- Consistency – Ensuring consistency between remote and in-office employees
- Inclusion – Preventing remote worker isolation or second-class status
- Communication – Facilitating effective communication across contexts
- Performance – Measuring performance fairly for remote and in-office work
- Meetings – Enabling equitable hybrid meeting participation
Making hybrid work successful requires intention, adaptation, and flexibility from leaders. Models must ensure remote workers remain equally engaged, enabled, and included.
Conclusion
The COVID-19 pandemic proved that remote work could be successful for many companies and roles. However, permanent remote comes with culture, collaboration, inclusion, and innovation risks. For most, a hybrid model balancing flexibility with in-person time offers the ideal solution. But the future of work remains a complex equation with many variables. Economic, workforce, productivity, culture, and business factors all weigh on leaders’ decisions around sustaining work from home models. Careful consideration of costs and benefits will determine the ideal future strategy.
With effective leadership, inclusive policies, adaptable mindsets, and the right technology, companies can optimize hybrid or remote models. As we move forward, flexibility and agility will be key to sustaining positive employee experiences and company success. While we may never return to pre-pandemic ways of working, the office remains an integral space for culture, connection, and collaboration. So for most companies, the era of fully remote work may be ending, but the future of work will represent a new hybrid model balancing the best of both worlds.