The Future of Work: Why Remote Work is Here to Stay
As the world slowly returns to normalcy, some have argued that remote work is a temporary solution to the pandemic-era crisis. However, labor economists and data suggest that remote work is an enduring feature of the US job market.
A Shift in Workplace Culture
The notion that working from home is a “Covid-era privilege” is being challenged by experts. Nick Bloom, an economics professor at Stanford University, believes that “working from home is here to stay.” According to WFH Research, more than 60% of paid, full workdays were done out of the office at the peak in early 2020, and although that share has fallen, it has remained stable at between 25% and 30% for two years.
The Benefits of Remote Work
Remote work, primarily hybrid work, has staying power because it’s “hugely profitable” for companies. Workers’ productivity doesn’t seem to increase if they come to the office more than three days a week, and workers value the ability to work from home. Additional days mandated in the office increase employee turnover, which is “hugely costly” to firms.
The Impact on Companies
A typical large company with tens of thousands of employees can increase profits by tens of millions of dollars a year by reducing turnover costs. Some companies may be using return-to-office mandates as a “covert strategy for headcount reduction,” according to a recent ZipRecruiter employer survey.
Pushback from Officials
Some officials have pushed back on the notion that return-to-office mandates are a way to reduce headcount. Amazon’s CEO, Andy Jassy, denied that the five-day in-office policy amounted to a “backdoor layoff,” citing cultural and productivity concerns as the primary reasons for the policy.
The Future of Remote Work
Despite some big-name employers curtailing remote work, data shows that remote work hasn’t fizzled out. About 8% of job listings on Indeed advertised remote or hybrid work in November, down from a high of 10% in February 2022 but well above the 3% share in 2019. As the job market continues to evolve, it’s clear that remote work is here to stay.
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