Thursday, September 26, 2024

Nobody Knows if "Return to Office" Boosts Productivity

As a test, this content as a podcast here


It is virtually impossible to test human-driven processes in the same way a scientist might test hypotheses, despite our use of the term social “science,” but none of that inability to truly test cause and effect relationships alleviates the need to make decisions in a void. 


Consider the current debate over “return to office” policies, often touted because “in office” work builds company culture. Ignore for the moment our inability to measure “company culture.” Ignore the possible impact on productivity of office or knowledge workers (since we cannot really measure that, either. 


Researchers do not agree on whether the thesis that “in office” work creates or sustains company culture, even if it might affect other elements of “culture” such as collaboration, job satisfaction, innovation or employee assessment, training and advancement. 


Study Title

Date

Publisher

Key Conclusions

The Surprising Truth About InPerson Work

2024

Robin Powered

Inperson work boosts collaboration, job satisfaction, and innovation. Physical proximity increases knowledge sharing and motivation.

'Office culture' as we know it is dead. Workers have other ideas

2024

BBC

Employees are less interested in pre-pandemic office perks and culture. They prioritize flexibility, equitable pay, and being seen as whole humans.

Why a full return to office is gaining ground

2024

HRD Connect

In-office work enhances company culture through informal interactions and facilitates mentorship. However, employee preferences for flexibility must be considered.

Working in the office 5 days a week to build company culture is a myth

2024

Fortune

Hybrid workers report higher levels of satisfaction, engagement, and feelings of belonging compared to full time in-office workers. Forced return to office can negatively impact culture.

Workforce Radar Report

2024

PwC

Hybrid workers demonstrate the highest levels of satisfaction and engagement. The idea that fulltime in-office work is necessary for strong culture is a myth.

"The Impact of Physical Workspaces on Organizational Culture"

2023

Harvard Business Review

In-office work fosters a stronger sense of community, improves collaboration, and enhances knowledge sharing among employees.

"The Role of InPerson Interactions in Building Company Culture"

2022

Stanford Graduate School of Business

Face-to-face interactions are crucial for building trust, fostering a sense of belonging, and creating a shared company identity.

"The Negative Effects of Remote Work on Company Culture"

2021

MIT Sloan Management Review

Remote work can lead to decreased employee engagement, reduced informal communication, and a weaker sense of organizational connection.

"The Benefits of Hybrid Work Arrangements for Company Culture"

2020

McKinsey & Company

A hybrid work model can balance the advantages of in-office work with the flexibility of remote work, promoting a positive company culture.

"The Impact of Office Design on Employee Productivity and Wellbeing"

2019

Cornell University

A well-designed office environment can enhance employee satisfaction, productivity, and overall well being, contributing to a positive company culture.


Without much doubt, most employees prefer remote work when it is available. What is less clear is whether “return to office” mandates enable firms to function at a higher level of output or quality (assuming the work is amenable to remote venues and assuming you believe you can measure such effects. 


In some cases, studies suggest in-person work does improve productivity, to the extent that collaboration or knowledge sharing matters, and assuming such outcomes differ from remote instances in a material way. 


In other cases, outcomes likely hinge on the actual job functions. Writers, code developers, artists, marketing or advertising functions and many sales functions traditionally have used lots of remote workers, as the work is suited to remote basing. 


Study Title

Date

Publisher

Key Conclusions

The Science behind InPerson Productivity at the Office

2024

Robin Powered

Physical proximity boosts collaboration and knowledge sharing. Employees within 25 feet of high-performing colleagues saw a 15% productivity improvement.

Study finds hybrid work benefits companies and employees

2024

Stanford University

Hybrid work (2 days remote had no negative effect on productivity or career advancement. It reduced employee turnover by 33%.

Americans are embracing flexible work—and they want more of it

2024

McKinsey & Company

Well-organized hybrid work can improve productivity by up to 5%. 83% of employees cite increased efficiency as a primary benefit of remote work.

Study finds workers say they need to be in an office to be productive

2024

Scripps News

Workers report needing to be in the office for twothirds of the workweek to be productive. Top reasons include better focus and accessing technology.

The Surprising Truth About InPerson Work

2024

Robin Powered

In-person collaboration improves task completion by 50% compared to solo work. Face-to-face interactions are more impactful than virtual ones.


Perhaps the actual impact on productivity is not really the issue. If managers believe they are better off with employees in the office (for whatever reasons, that might be all that matters. Irrespective of the matter of productivity, which cannot be measured anyhow, if managers believe they benefit from “in office” work modes, that is likely to happen. 


Still, some jobs traditionally have been highly amenable to remote work. 


Job

Reasons for Remote Work Suitability

Software Developer

Work primarily involves coding and digital tools

 Collaboration possible through version control systems

 Can easily share and review code remotely

Graphic Designer

Digital design tools accessible from anywhere

 Can share and collaborate on designs online

 Client meetings can be conducted virtually

Writer/Editor

Writing and editing can be done independently

 Digital collaboration tools for feedback and revisions

 Research can be conducted online

Data Analyst

Data analysis software accessible remotely

 Can access databases and datasets from anywhere

 Results easily shareable through cloud platforms

Customer Service Representative

Phone and chat support can be done from home

 Customer management systems accessible remotely

 Call routing technology allows for distributed teams

Digital Marketer

Online marketing tools and platforms accessible anywhere

 Analytics and reporting can be done remotely

 Virtual collaboration for campaign planning

Translator

Translation work can be done independently

 Digital resources and translation tools available online

 Can communicate with clients virtually

Accountant

Accounting software accessible from anywhere

 Digital document sharing for financial records

 Virtual meetings for client consultations

Project Manager

Project management tools allow for remote team coordination

 Virtual meetings for team updates and planning

 Can track progress and deadlines online

Online Teacher/Tutor

Virtual classrooms and learning management systems

 Can conduct lessons via video conferencing

 Digital resources for curriculum and assignments

Remote Sales

Outside sales staff often are based wherever key clients are

Inside sales can be based anywhere


According to one 2022 survey (which might still show the impact of Covid work-from-home policies, many industries were seeing high growth of remote work. 


Finance and Insurance   2,062%

Legal and Accounting   1,995%

Retail   1,651%

Aerospace   1,341%

Media   1,280%

Real Estate, Construction   1,150%

Information Technology     1,132%

Education, Govt., Non-profit     1,097%

Consumer Technology             1,028%

Consumer Goods   1,651%

Hospitals,Medical Centers       1,028%

Healthcare       859%

Telecommunications     1,020%

Energy and Utilities                      897%

Technical Services                      878%

Enterprise Technology                 701%

Manufacturing       869%

Food and Beverage         719%

Hospitality and Recreation           644%

Transportation         634%

Business Services         550%

Staffing         475%

Pharmaceuticals         248%

source: The Muse, Ladders 


And though large enterprises are shifting back to “in office” work, remote work job openings might still be increasing in 2024, compared to 2023. The number of “remote” job postings peaked in 2022, as Covid pandemic restrictions prohibited much in-office work.  

source: Bloomberry


All that noted, remote work is both an employee preference issue and a management comfort issue, at least for jobs that can plausibly be done on a remote basis. 


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