Rosalind Evans
In the aftermath of the COVID-19 pandemic, the traditional five-day office week has become a concept of the past for many industries. As companies and employees embrace the flexibility and benefits of remote work, reverting to pre-pandemic office norms seems increasingly outdated. Stanford economist Nick Bloom highlights why a total return to the office is improbable and may also be counterproductive for productivity and profitability.
The Pandemic’s Permanent Impact on Work Culture
Before the pandemic, remote work was a rarity, with less than 10% of workdays being conducted from home. However, the pandemic catalyzed a massive shift, with the rate peaking over 60%. Approximately 25% of workdays are remote today, indicating a significant and enduring change in how and where we work. Nick Bunker, from Indeed, emphasizes, “The rise of remote work is probably going to be one of the most enduring legacies of the pandemic-era U.S. labor market.”
The Profitable Shift to Hybrid and Remote Models
Remote work not only persists due to employee preference but also because it has proven to be highly profitable for companies. According to Nick Bloom, companies have observed a one-third reduction in employee turnover rates due to remote working options. He notes, “Remote work is not going away,” predicting even higher adoption rates in the future. The economic benefits extend beyond reduced turnover, including lower costs in office space and broader recruitment opportunities.
Why Remote Work Does Not Impair Productivity
Despite some companies’ concerns, the transition to remote and hybrid work models has not negatively impacted worker productivity. Bloom asserts, “Firms care about profits, not productivity,” suggesting that as long as remote work contributes positively to the bottom line, it will remain a staple. This viewpoint is supported by the steady demand for remote positions, with job postings for remote roles significantly higher than pre-pandemic levels.
Exploring Why Some Firms Insist on In-Office Work
While the trend leans heavily towards remote work, approximately 38% of employees capable of performing their jobs from home are still required to work full-time in the office. This requirement is often more prevalent among older companies. A study from the University of Pittsburgh suggests that some companies may use return-to-office mandates to deflect from poor performance rather than out of necessity for in-office collaboration.
The shift towards remote work is a temporary adaptation and a long-term labor market transformation. The benefits of remote work, such as reduced commuting pollution and increased family time, present a “triple win” for employees, companies, and society. As Nick Bloom eloquently says, “It’s tough to think of something [else] that is that beneficial.” With these profound advantages, it’s clear why a total return to the office remains unlikely and undesired.
