Millions of Americans were able to work from home during the recession. The work-from- home trend won't go away if another recession is on the horizon.
According to Nick Bloom, a leading remote work expert and co- founder ofWFH Research, there are many ways to work from home.
Many companies are still embracing fully remote or hybrid work arrangements despite the easing of the Pandemic Restrictions. According to a June survey, 15% of full-time employees are fully remote, 30% are hybrid, and 45% are on-site full-time. The figures have remained largely flat over the last six months.
With job openings near record-highs over the last year, workers have taken advantage of their new-found leverage and quit their jobs. In order to attract and retain talent, companies have often complied, even if they didn't want to or didn't want to.
The labor market could change if the Federal Reserve's rate hikes don't achieve the desired soft landing. If layoffs become more widespread, companies might be willing to demand a return to office for anyone who doesn't comply.
If the economic cycle takes a turn for the worse, Nick Bloom, who has consulted with hundreds of CEOs and managers and whose research on working from home spans nearly 20 years, believes that remote work will continue.
US workers value a hybrid working arrangement roughly the same as a 5% pay raise, suggesting they would be willing to take a 5% pay cut to work from home.
There are different reasons for this. "No commute," "flexible work schedule" and "less time getting ready for work" were the top three benefits of working from home, according to a survey.
According to a survey conducted in January, the absence of a commute saves Americans an average of 70 minutes per day that they could be spending on things like television, exercise, chores, and child care. Thirty of the 70 minutes are spent working.
One study found that a hybrid arrangement reduced quit rates by a third.
The need to attract and retain talent isn't going away even if there is a recession. Many employers are expected to accommodate flexible work environments.
Worker productivity is increased by a hybrid work environment. He says that productivity seems to be up. It is 3% to 5%.
Other research supports the claim that remote work reduces productivity. Skeptics tend to focus on how remote work can be difficult to onboard and train younger employees, as well as how face-to-face and inter- team interaction can foster creativity and boost productivity.
These concerns should be directed towards fully remote arrangements according to Bloom. Being fully remote may not be the best option for certain roles and individuals. The same concerns do not come from a hybrid approach.
It's a win-WIN if it's well-organized.
People who are diverse in their workplace are more likely to want to work from home.
A survey of over 10,000 workers from five countries, including the US, found that most prefer a hybrid or fully remote arrangement. 75% of white respondents and 81% of Asian / Asian Americans said the same.
The data shows a strong desire for remote work in minority communities. Many of them aspire for a diverse workforce, and he thinks embracing flexible working arrangements can help.
Even in a recession, the four factors will keep remote work going.
He says that keeping employees happy, improving productivity, focusing on diversity, and cutting costs are allcyclical. We don't care about keeping employees happy or cutting costs. Some companies are more interested in you than others.
He concedes that a downturn could cause a bit of a pushback against remote work, but he hasn't seen any signs of it yet. It is expected that the technology supporting remote work will continue to advance, something that will make remote work more appealing to workers and their employers.
He says that since March 2020 it's better than it was.
The market for work from home hardware and software technologies is much larger. Hardware companies are making products for it.