Before the COVID-19 pandemic, around 5% of the UK working population worked from home most of the time (it is roughly the same in the US), and around three quarters had never worked from home. Now, almost everyone who is able to, is doing so all of the time. The transformation has been incredible in terms of scale and speed and there are numerous reports that it was actually easier than predicted, and has ushered in unexpected benefits.
Of course there are considerable financial savings available if ultimately less office space is required. Other benefits beyond not having to tolerate the cycling shorts being aired at the desk next to yours and pranks à la Tim from The Office include the ability to focus, greater productivity (in certain conditions), managerial focus on output rather than presenteeism and greater flexibility to support childcare (not, of course, as in the current situation where there is none). Avoiding the commute is another huge benefit, not only for the individual forced into moments of uncharacteristic aggression in order to squeeze their way onto a Central Line train or wasting hours staring at the back of the car in front, hoping to summon some supernatural force that might edge it forward, but also in terms of environmental benefits. A study has shown that taking into account increased usage at home, working from home reduces overall energy consumption. Longer-term these changes have the potential to ease some of the other challenges of high density living, not least the housing shortage. The questions to be asked now are will home working continue post-COVID-19 crisis, what is at stake if the office is no more, and what is the right long-term approach to home-working.
“nearly half were considering making remote work a permanent option”
A survey taken in early April 2020 found that 20 per cent of CFOs plan to make one in five previously on-site positions permanently remote post COVID-19, with three quarters saying one in twenty. A different survey of CFOs globally showed that by mid-May, nearly half were considering making remote work a permanent option where feasible, with nearly three quarters saying the flexibility created by the current situation would prove useful to the business in the long run. Only a third envisaged productivity loss over the next month because of a lack of remote work capabilities. Interestingly, this had decreased from 52 per cent when the same question was asked in late March which suggests that as equipment is being set up and new working systems established, productivity concerns are reducing. A number of high profile companies have announced their plans to enable more working from home post-virus including Facebook, Twitter, Barclays, Mondelez and Goldman Sachs. WPP have announced that one in ten people who used to come in to work in their China office are continuing to work remotely post-lockdown. So it seems clear that we should expect the number of home-workers to increase, perhaps significantly.
“For many, their social lives are at work with over half of people at work having at least one close friend there, indeed one in every five married couples met through work.”
However, there is plenty at stake. The corporate rental market and all the provisions such as gyms, restaurants and bars established to accommodate office workers could face serious challenges. From the business perspective, there will be concerns around the ability to keep track of progress, for workers to feel part of a team and motivated by this and to spot problems when they emerge. There is a potential loss of ideas that emerge through spontaneous and informal conversations. Individuals also have a lot to lose. For many, their social lives are at work with over half of people at work having at least one close friend there, indeed one in every five married couples met through work (though this number is declining). The importance of social interaction is well established, thus there is the potential for home working to lead to an increase in loneliness and depression beyond the pandemic. Another really significant challenge is addressing the inequalities that are accentuated by this way of working. Who is likely to do their best work sat in bed, surrounded by housemates, with constant family interruptions, with clunky internet or worse in an environment where they feel threatened or anxious? Young people, who have been worst hit employment-wise by the crisis are also likely to feel more negative effects from a work from home revolution. Mark Read, Chief Executive of marketing and advertising giant WPP has noted “Junior employees and those in shared accommodation find homeworking much more difficult than senior executives with houses and gardens.” As well as the space issue, junior staff are likely to learn more from others around them in an office, be that understanding the appropriate phone manner or being able to ask the ‘silly question’ they may feel uncomfortable writing as an email. Another challenge is the long debated blurring of the work/ home divide and what this means when working from home. Will staff be able to switch off? A study has shown that though the ability to work from home is seen as a work benefit by employees, it can lead to “greater intrusion of work into family life and for added work-related stress”.
“Junior employees and those in shared accommodation find homeworking much more difficult than senior executives with houses and gardens.”
— Mark Read, CEO, WPP
“the benefits of working from home are much greater in those who have chosen to do so”
As the work from home recommendation is lifted, organisations will take their decisions on their new approach to working from home. The right response will depend on sector, location, size and demographic of employees, and will require a careful balancing act. Although work from home policies will vary across organisations, it seems that there are a few fundamentals that should be maintained. There should be some regular face to face contact where feasible. Thorben Albrecht, a member of the ILO Global Commission for the Future of Work said in a recent interview that companies need to adjust their way of remote working after crisis, pointing to the importance of having face to face meetings. There should be an option to work at an office for those whose home conditions are not conducive to good work, for whatever reason, and no penalties for taking this option. Perhaps intuitively, but also supported by a Stanford study, the benefits of working from home are much greater in those who have chosen to do so. Steps should be taken to ensure right equipment is made available - from the internet connection (in some areas this will need government support) to the desk and chair that do not necessitate trips to the chiropractor and the right security to ensure data protection compliance so that the company’s systems are not left vulnerable. Taking security seriously is one of the key recommendations of a McKinsey report reflecting on lessons learnt in China.
There are numerous benefits to individuals, companies and society available by increasing remote working, but it is important that a considered approach is taken to avoid some of the pitfalls.
