Most of you probably already know what I mean when I say that many of you are familiar with the notion of remote work. After COVID-19, this became a hot topic of conversation. If you do your job outside of a traditional office setting, such as from your house, you are a remote worker. Plus, I can’t stress enough how advantageous it is to have a flexible work schedule. For starters, you get to wear whatever you want—say goodbye to those uncomfortable business suits and hello to your comfiest pyjamas.
However, clothing is only a small part of the story. Working remotely gives you more control over your time and schedule. Imagine being able to work whenever you want without the hassle of a daily commute. It’s a game-changer. Working from home for the first time was incredibly relieving; I’ll never forget it. Work hours and location flexibility were both up to me. But here’s the greatest part: The days of lengthy, boring commutes were over. There was this one morning where I spent two hours in traffic on my way to work. In a word, it was terrifying. But now that I have the option to work remotely, I no longer have to worry about it. But perhaps you’re wondering: How long has this remote work thing been around? If you thought it was a recent phenomenon, you’d be surprised to hear that it’s been around for quite some time.
Jack Nilles, a NASA engineer, popularised the phrase “telecommuting” in 1973, laying the groundwork for modern remote work in an era before Skype and Zoom talks. Long before the advent of widespread telecommuting around the turn of the millennium, IBM experimented with small groups of employees working remotely. In 1983, 2,000 people were working remotely for the same company that had begun with just five. These people worked in a call centre, where everything was done over the phone.
As we go ahead, however, it is difficult to predict what the long-term outlook is for remote employment. In the future, perhaps we’ll all be able to teleport to our jobs. If not, perhaps we’ll all have robot helpers to run our errands for us. It’s hard to even begin to imagine all the potential outcomes. However, working remotely, either from home or elsewhere, is on the rise, and for good reason: it’s more convenient for both workers and businesses. However, there is a plethora of data available, making it difficult to sift through what’s reliable and what isn’t. This post will serve you well in this regard.
Remote Work Statistics and data
According to the data, only around 17% of workers were able to operate remotely at full capacity prior to the release of COVID-19. When we fast forward to April of 2021, we find that 44% of the workforce is entirely remote, and the percentage of employees opting for remote work in 2022 was up 24% over the previous year.
Remote work has surged by 400% in the last decade, and in the future, 73% of organisations will have at least some employees working remotely. The start of the pandemic prompted 88% of office workers worldwide to work from home, per data compiled by Global Workplace Analytics. 85% of Google’s workforce expressed interest in relocating or working remotely after the company experimented with hybrid workweeks in May 2020. Meanwhile, Facebook and Twitter made remote work permanent for their staff. Upwork predicts that by 2025, 36.2 million Americans, or 22 percent of the workforce, will do so remotely. Furthermore, the EY 2021 Work Reimagined Employee Survey found that just 15% of employees asked from SEA would want to work from the office full-time when pandemic constraints lessen locally. Depending on the sector and the area, these percentages might change, but there is no denying that remote work is here to stay.
If you are wondering which industries are most likely to have a higher percentage of remote workers, I have got you covered!
Many different types of businesses now rely heavily on remote workers. Many positions in the information technology sector, for instance, lend themselves well to remote work. Since consultants frequently visit clients’ offices or complete projects away from the office, consulting businesses also tend to employ a large number of remote workers. Many people work from home in the education sector as well, thanks to the proliferation of online courses. Content writers and social media strategists are two examples of marketing professionals who are often given the flexibility to work from home. There are also many remote professionals in the fields of banking, healthcare, customer service, the arts, and freelancing. The data further reveals that healthcare (15%), technology (10%), and the financial sector (9%) have the highest percentages of remote workers.
By 2022, remote work is expected to account for more than half of the workforce in both the United States and Europe (53 percent in both regions). In comparison, almost 30 percent of Asia’s knowledge workers will be remote workers by 2020. The data below is from 2019. Agreed, it is a little dated, but it is a good starting point to compare the massive scale of remote work today.
Inquiring minds want to know: Ladies and gentlemen, have you ever thought of quitting your 9-to-5 and instead embracing the remote work revolution? Certainly, you’re not alone if that’s the case. The top three motivating factors for remote work are schedule flexibility, cost savings associated with transportation, and improved work-life balance. However, it was only after COVID-19 that remote work became a mainstream thing. Now, come on, who can argue with that? But that’s not all; there are many more, so let’s take them up separately.
The benefits of remote work
The Employee Perspective
You’re in luck if you’ve had it with uncomfortable small talk around the office water cooler, because it’s time to quit your 9-to-5 and join the growing number of people who are finding success in remote work. Remote working provides several advantages for both individuals and employers, including the savings on transportation costs and the freedom to choose where and when to get work done (at home, on the beach, at the local coffee shop, etc.). Let’s talk about how businesses and employees may both benefit from employees working from home in terms of output, job satisfaction, and the bottom line.
Productivity
Workers with remote jobs have more freedom and independence in terms of scheduling their own work hours. As a result of being able to tailor your workday to your own requirements and preferences, you may find that you are more productive and happier in your position. A recent poll indicated that working from home increased productivity for 51%. It’s not simply wishful thinking; there is empirical evidence to support this. In essence, 62% of employees report feeling more productive when working from home, with millennials feeling the most productive (66%), and Baby Boomers feeling the least (46%). Back in 2013, Bloom did an experiment on remote work, and reported that the productivity of workers who could do their jobs from home was found to be 13% higher than that of those who had to be physically present in the office, and the reasons are many.
- Workers who are able to do their jobs from home are putting in more hours. According to research conducted by Ergotron, 40% of workers put in more time at home than they do in the workplace. Also, the National Bureau of Economic Research found that these new, longer workdays add around 48.5 minutes to the typical workweek.
- The work-life balance of remote employees has improved. Perhaps more unexpectedly, 75% of those surveyed by Egotron who work from home reported an improvement in their work-life balance as a result of making this lifestyle change.
- Reduced stress levels are another benefit of working remotely. According to a survey conducted by 2020 Nitro, remote employees are experiencing less stress on the job. In contrast to the 33% of office workers who reported moderate stress in 2019, just 29% of those who worked remotely did so.
- Fewer distractions. Less interruptions (68%), greater focus (63%), quieter settings (68%), and more comfortable working conditions (66%), among other factors, all contribute to higher productivity. Avoiding office politics, according to 55% of survey participants, was a factor.
It is true that some people may not be more productive when working remotely, but this depends on the person. But these numbers show that working from home has many benefits and may make people much more productive.
Time and cost savings
30% of people polled by the Becker Friedman Institute for Economics at the University of Chicago said they were more productive and invested in their work when they were able to do it from home. From the middle of March 2020 to the middle of September 2020, the survey team of the Becker Friedman Institute for Economics at the University of Chicago found that commute times decreased by 62.4 million hours daily, for a total savings of over 9 billion hours. Another piece of research also reported that employees who work from home can save an average of 40 minutes each day on their commute. Thus, you may save a whopping $6,000 a year! Further, it has been estimated that people might have saved close to $500 per month by staying at home during the COVID-19 pandemic. Yet another study claims that remote workers can save up to $7,000 annually that otherwise goes into transportation, food, and childcare. Did you know that the average employee commutes 96 hours a year, or about two hours per week, between their home and place of employment? You save both time and money. What more could one ask for?
Happiness (mental & physical wellbeing)
Any numbers about the workforce are incomplete without the happiness and mental well being data. According to a study, 88% of respondents said they were “happier.” Further, 86% of respondents said they would be better able to provide for their families, 83% said they would have a better work-life balance, and 82% said it would be better for their overall mental health, if they are allowed atleast some time of remote work post pandemic. In another study, more than half (53%) of the respondents reported less stress as a benefit of working remotely, emphasizing that employees who work remotely reportedly get more sleep, eat better, and exercise more—45%, 42%, and 35% respectively—which helps improve their mental and physical health. According to a survey report by Owl labs, employees who worked from home expressed greater levels of happiness (22%) than those who always worked in an onsite office setting. According to the results of FlexJobs’ 10th Annual Survey, 70% of participants believe that having a full-time remote job would significantly improve and benefit their mental health.
Job satisfaction
Let me also tell you, that data shows that remote work can lead to some serious job satisfaction. For example, a study, People at Work 2022: A Global Workforce View, published by the ADP Research Institute, found that, on average, remote workers are more upbeat (89%) than their coworkers who work on-premises (77%) and report higher levels of job satisfaction (90%) than those who commute to work (82%).
The Employer Perspective
Productivity is a big benefit for both employees and employers, but that’s only the tip of the iceberg. Recent research has found that organisations may save an average of $11,000 annually for each person who works remotely at least half the time. Reduced office costs, less absenteeism, 25% less employee turnover, wider access to talent, and higher staff retention all contribute to this financial gain. According to a FlexJobs survey conducted between February and March 2022, 57% of participants said they would rather quit their job than return to the office. The second-highest compensation and benefit that was significant to respondents in the same survey was remote work, which was selected by 77% of those polled. There is evidence to suggest that businesses that support remote work have a 35–40% higher rate of productivity, which in turn helps to save expenses. These numbers show how much money may be saved by using remote workers.
I know it’s hard to believe all these great benefits, so here’s a list of 20 remote companies that are saving big time by leveraging remote work.
A big win for the environment
During the pandemic, I remember waking up to the purest air and sighting Himalayan peaks that I had never seen in my life with the naked eye. Being a resident of an urban Indian city, I had forgotten how glorious nature was, as all my memories of it were coated with pollution.
A rise in remote work reduces the number of vehicles on the road. According to the EPA, 28% of greenhouse gas emissions in the US are attributable to transportation, where 23% of emissions come from medium- to heavy-duty trucks and 59% come from light-duty vehicles like cars. If there are fewer cars on the road now and in the future, greenhouse gas emissions will be significantly reduced.
However, the grass is not all green
Judging remote work from all countries alike would be like judging an elephant on its ability to climb a tree! For instance, the average WFH potential in low-income countries is 10.2% (in theory), but it only reaches 3.8% in practice, and in mid-income countries, the average is 23.9% in theory but reaches only 18.7% in practice.
Next comes the internet connection. You would be surprised to know that as of January 2021, there are 4.66 billion active Internet users which means only 59.5% of the world’s population has access to the Internet. Further, only 65% of remote workers in the US have Internet that is fast enough to support video calls. Think about the rest of the world!
East Asian nations like Japan, China, and South Korea perceived some productivity loss when it came to perceived productivity and flexibility in adjusting to remote work practices. Riskybrand claims that employees expressed concerns about working remotely. For instance, due to distractions, 50% of people struggle to be productive. 46.7% attribute their increased stress or depression to the isolation of WFH. 37% lament an imbalance between work and life. The Japan Productivity Centre conducted a recent survey in April 2021 that revealed the WFH arrangements are not yet perfect: 38% of people voice complaints about their surroundings. 42 % criticize Internet access. 25% usability of IT tools for online meetings and 30% online data sharing.
Adding to these challenges, the debate around remote work is intensifying. Both proponents and opponents of remote work are holding strong views, making it challenging to find a mutually beneficial solution. Recent events, such as Amazon workers staging a walkout and Farmers Insurance employees threatening to unionize or even quit, underscore the depth of feelings on both sides of the debate. Google’s move to track in-office attendance and whispers about employees being terminated for not adhering to RTO policies further complicate the narrative.
The author of a Harvard Business Review article emphasizes the importance of understanding the “5 Ws” (Who, What, Where, When, and Why) to navigate this complex landscape. Performance, a hotly debated aspect, is often cited as both a benefit and a cost of remote work. Different types of work have different requirements, and not all tasks are suited for remote work. Time policies, such as flexible hours, can indeed offer short-term benefits for employees. However, the long-term consequences of such policies, both for the individual and the organization, need careful consideration.
Also read: Remote Work In Singapore: Trends & Statistics
The landscape of work has undeniably shifted, with remote work emerging as a dominant trend in the post-pandemic era. From its historical roots with NASA engineers to its current widespread adoption by tech giants and startups alike, the journey of remote work is a testament to the evolving nature of work and our adaptability as a global workforce.
While the benefits of remote work are manifold, ranging from increased productivity to enhanced mental well-being, it’s essential not to overlook the challenges it presents. The digital divide, cultural nuances, and the ongoing debate around performance metrics are just a few of the complexities that organizations and employees grapple with.
Recent events, from employee protests to corporate tracking measures, underscore the need for a balanced, empathetic approach. As we move forward, it’s crucial for leaders and employees to engage in open dialogue, understanding each other’s perspectives and working collaboratively to shape the future of work. The remote work revolution is not just about where we work, but how we redefine productivity, collaboration, and job satisfaction in this new era.
As with any significant shift, there will be growing pains, but with understanding, flexibility, and innovation, we can weave a tapestry of work that benefits everyone. As for what does the future hold for remote work? Stay tuned for the next segment of Clicks, Calls, and Coffee.
