Many business leaders believe that a recent decrease in productivity can be attributed to an increase in working from home. It’s part of the reason why many workplaces, including Tabcorp and the NSW Government, are ordering their employees to resume working from the office.
A KPMG study of CEOs revealed that 82% expect white-collar workers to be back working fully in the office within three years.
However, not everyone agrees. There’s a growing body of evidence that suggests working from home has the potential to significantly boost productivity in some workplaces, offering a promising outlook for the future of remote work.
So, what impact has working from home had on productivity? It depends on who you ask.
According to a UK study by the London School Of Economics, working from home can increase productivity by as much as 28 percent.
According to the study, while working in an office, people often take time to greet their colleagues and may engage in social coffee and smoke breaks. While these interactions can have significant social benefits, they can distract workers, reducing their overall output. The study found office productivity increased at night when there were fewer people in the office.
However, socialisation may not always have a negative impact on productivity. For example, interacting with older colleagues can allow younger workers to learn and develop their skills, enhancing their productivity. It can also help improve problem-solving, allowing you to bounce solutions off your colleagues.
The socialisation provided by interacting with colleagues in the office can also enhance workers’ wellbeing. Evidence suggests that those with greater wellbeing are more productive. In addition, working side by side with others in the office can provide a sense of a ‘joint mission’, which may provide employees with extra motivation.
Some argue that the social benefits of work can be achieved in two to three days. Therefore, they argue that attending the office five days a week is unnecessary.
Proponents of working from home argue that any shortfalls in productivity can be effectively addressed by implementing better supervision and carefully matching tasks to employees’ skills. They contend that productivity can be further enhanced in roles where employees are well-supervised, and their tasks are well-matched.
Offering remote work increases the pool of candidates available to employers. This can increase the chance of candidates being well-matched to positions.
In a study by The Conversation, one in five workers said working from home had made them a lot more productive.
Just one in thirty said working remotely had made them a lot less productive. Interestingly, one in five employers said working from home had made their employees a lot more productive, while just one in twenty said it had made their workers a lot less productive.
In addition, the study revealed that workers dedicate about one-third of the time they save commuting to unpaid work tasks.
While many believe that working from home has reduced employee productivity, the reality is much more complex and nuanced than that.
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The impact of working from home on productivity
Pros
· Less distractions
· Less time spent commuting may allow workers to start earlier and devote more time to unpaid work tasks
· Less time spent in meetings which are not always productive
· Supervision can help overcome many limitations
Cons
· Less ability for mentorship
· Fewer opportunities to interact with colleagues to learn and develop your skills.
· Less opportunities for problem-solving and collaboration.
Article References
Bell, M (29 September 2024) ‘Work from home will be dead in three years, according the results of a KPMG survey of CEOs, The Australian, accessed 15 October 2024.
Burton, T & Black, E (10 October 2024) ‘Office distractions hinder workplace productivity: study’, Financial Review, accessed 15 October 2024.
Hensher, D.A (9 August 2024) ‘Making workers return to the office might not make them any more productive, despite what the NSW premier says’ The Conversation, accessed 15 October 2024.