Remote work, also known as working from home (WFH), has been a hot topic lately. The UK government is considering giving workers the right to demand remote work, while some businesses are moving towards requiring employees to be in the office more frequently. Amazon’s Andy Jassy, for example, has mandated that all office-based workers must be in the office five days a week starting in 2025. Jassy believes that being physically together in the office helps strengthen company culture, fosters collaboration, and improves team connections.
While some companies like HSBC and Clifford Chance are downsizing office space in anticipation of remote work becoming more common, others such as Goldman Sachs, Boots, and Barclays are tightening their rules on remote work. PwC, for example, recently announced that UK partners and staff will be required to spend at least three days a week in the office. This shift towards more in-person work is seen as beneficial for the business.
Despite the trend towards hybrid working models, a Virgin Media O2 survey revealed that only 40% of businesses require employees to be in the office five days a week. However, a KPMG survey of chief executives indicated that 83% believe there will be a return to pre-pandemic modes of working within three years. This shift back to the office is expected to gain momentum in the coming years.
The UK government has introduced a new employment bill that includes making flexible working, including the right to work from home, the legal default. This move has sparked debate, with some questioning whether it is the government’s role to dictate where employees should work. Remote working has both pros and cons, with studies showing mixed results on productivity levels. While some businesses may benefit from cost savings and increased recruitment potential with remote work options, others may struggle with managing productivity outside the office.
Economically, remote work has been shown to have a positive impact. Stanford economics professor Nicholas Bloom argues that WFH has beneficial effects on the economy, such as increasing the labor supply, reducing pollution from commuting, and expanding the pool of potential employees. While individual firm productivity impacts may vary, the overall macro impact of remote work is largely positive.
In conclusion, the debate over remote work continues as businesses and governments navigate the challenges and opportunities it presents. While some companies are embracing remote work, others are moving towards more in-person work arrangements. The future of work is likely to be a mix of remote and office-based work, with each organization finding the balance that works best for them.
