Whether working from home is working or not is hotly debated, with many wondering if people can work as effectively at home as they do at the office. One study suggests that working from home actually increases productivity.
The study says that working from home will boost productivity by 5% thanks to a drop in commuting time. The study suggests the rapid adoption of new technology during the pandemic will have lasting economic gains, boosting productivity to new heights.
Work From Home Only Works for Some
Not everyone appreciates working from home. David Solomon, the Chief Executive Officer for Goldman Sachs Group Inc., describes the situation as “an aberration” that the investment bank aims to “correct as quickly as possible.” Solomon argues that new recruits must be able to experience and absorb the culture of Wall Street for themselves.
On the other hand, Mark Zuckerberg of Facebook says that being able to hire employees from anywhere in the world has opened up a new pool of talent and says many Facebook employees will continue to work from home.
The study assessed over 30,000 US workers to gauge whether the new arrangements will stay once the pandemic dies down. The research showed that one-fifth of full workdays will take place at home after the pandemic, which is up from the 5% before then but still lower than the peaks reached during the pandemic.
The findings come as many companies continue to announce arrangements to let people work from home. HSBC Holdings Plc recently announced it would be shutting the executive floor of its London Canary Wharf headquarters, converting the executive private offices into meeting spaces and collaborative areas. Twitter has also announced plans to let employees continue working from home.
Working From Home Works For the Rich Most of All
It wasn’t that long ago that working from home was considered a career killer. A UK study showed those who work from home were less likely to get promoted. The COVID pandemic has erased much of the stigma of working from home.
The new arrangements will he helped along thanks to better-than-expected working from home experiences, recent technological innovations and investments, and continued fears over catching coronavirus in crowded spaces like office buildings. The recent study follows a similar study last month that showed one in five company executives expected to see reductions in office space over the coming year, reflecting the shift to remote and virtual working environments.
Other highlights from the study are:
• Higher-income employees do especially well with working from home and reap more benefits
• The shift to working from home will reduce spending in city centers by up to 10% after the pandemic with people spending less on travel and amenities
Working from home is here to stay and will actually make people more productive. However, there are still some lingering doubts over the effect it could have on local economies in major cities that rely on inward commuting.