Are Remote Employees Better Workers?

How commonplace is remote work?

The ability to work from home is no longer just a cool job perk for a handful of employees, research finds. Indeed, telecommuting is commonplace in today’s technology-laden work environment and was trending upward even before 2020.

Here’s how the ubiquity of remote work has risen:

• 2015 and earlier: A Gallup study noted that in 2015, 37 percent of employees reported working remotely at one point in their career, compared with 30 percent in 2006 and just 9 percent in 1995. This data represents a 300 percent growth in about two decades. “Technology has made telecommuting easier for workers, and most companies seem willing to let workers do their work remotely, at least on an occasional basis if the position allows for it,” the 2015 study’s authors wrote.
• 2017-2018: Pre-pandemic data released by the U.S. Bureau of Labor and Statistics in 2019 reported that up to 25 percent of U.S. employees worked remotely at least occasionally in 2017 and 2018. This number includes both those who worked remotely consistently and those who worked from home only occasionally.
• 2022: A 2022 BLS report revealed that 34 percent of post-pandemic employees worked at home all or some of the time.
• 2023: Data from the Pew Research Center offers a slightly different perspective, saying that 35 percent of employees who can work from home do so all the time. While this number is lower than the high of 55 percent in October 2020, it shows the growing prevalence of telecommuting in a post-pandemic society. Notably, 41 percent of employees with jobs that can be performed at home work a hybrid schedule, with some days in the office and some at home. About 60 percent of this group works from home three or more days a week.

Clearly, working from home is far from unusual in today’s workforce.

Are remote workers more productive?

The rise in telecommuting could be partly due to an increased belief that remote workers are more productive than their in-office counterparts. In a 2020 McKinsey & Co. study, 41 percent of respondents felt they were more productive working at home than in an office. The study also reported that many employees grew more confident in their ability to work from home as the pandemic persisted.

Complementing McKinsey’s results, a 2022 study from WFH Research found that only 13.5 percent of people working remotely believe their efficiency levels have decreased. And previous Gallup research found that employees who spend at least some time working remotely are more likely than those who never telecommute to have high employee morale and engagement.

“It is unclear from those relationships whether telecommuting increases engagement or [if] workers who telecommute (and tend to be more highly educated, white-collar employees) are more likely to be engaged in their work in general,” the study’s authors wrote. “Regardless of the causality, Gallup research has consistently demonstrated that companies with a more engaged workforce tend to do better in a variety of business outcomes, including productivity, profitability and customer engagement.”

How often do employees want to work remotely?

Employees’ preference for working remotely has grown through the years. Consider the following pre-pandemic and mid-pandemic situations:

• 2015: The 2015 Gallup study cited earlier indicated that working from home was more infrequent. “Those who telecommute do not do so on a very frequent basis,” the study’s authors wrote. (The 2015 study was based on surveys of 1,011 adults aged 18 and older in all 50 U.S. states and Washington, D.C.)
• 2020: According to 2020 Pew Research Center data, 60 percent of respondents said they wanted to work from home one to five days per week, while 30 percent preferred always working from home. Only 10 percent said they wanted to work from the office all the time. Of course, this data was gathered while many businesses were closed or unavailable to some employees.

More recent data indicates that preferences for remote work options are still quite strong, especially among high-performing talent. A 2023 Gartner study revealed that mandated on-site requirements significantly impact talent attraction and retention, with high-performing employees responding that their intent to stay if return-to-office mandates were implemented was 16 percent lower — double that of average employees.

Furthermore, a recent study by USA Today found that 42 percent of office workers would take a 10 percent pay cut for the ability to work remotely. The same study revealed that only 16 percent of white-collar workers would consider a role that doesn’t offer any days of remote work.

How to implement an effective policy for remote work

An effective telecommuting policy is vital to helping your remote employees maintain — and possibly increase — their productivity levels while working from home. Here are some essential steps to help you develop an effective remote work policy.

1. Define objectives and assess business needs.

A fully remote environment is not right for every company, so it’s essential to take time to consider why you want to create remote work opportunities and what outcomes you want to achieve. For example, you may want to boost employee retention or reduce operating costs. Developing these objectives early will help guide all your remote work decisions.

Every company is different, so carefully consider your company culture, business needs and employee expectations. Examine current processes, technologies, schedules and the needs of various teams. It’s critical to consider all these factors before developing a new policy. New systems and strategies may be necessary to ensure everything goes smoothly and the business is not negatively impacted.

2. Address any new legal or compliance challenges.

Consider how an employee’s new location may be impacted by various labor laws, employment laws, regulations and HR compliance issues in your industry. For example, will working in different states, cities or countries impact your payroll process or PTO policy?

Develop clear guidelines about permissible work locations to ensure critical business data remains safe and secure. Data security, confidentiality and employee rights should all be considered when developing a remote work policy. Once your policy is developed — and before it’s implemented — have a team of experienced professionals look it over to ensure it’s viable.

3. Develop clear guidelines and procedures.

Remote work looks different for every company, so you must have clear guidelines and procedures in writing. Additionally, building remote work elements into your onboarding process and offboarding procedures is essential to ensure clarity.

For example, you must set guidelines about required working hours, time zones, break procedures, meeting requirements and how office equipment will be returned if the employee leaves the company. These guidelines should also address performance management and accountability. Ultimately, you must ensure every person knows what is expected of them in a remote work environment.

4. Prepare your technology infrastructure.

Now that you’ve defined your goals, considered legal and compliance needs, and developed guidelines, consider the technology you need to support a remote workforce. For example, research video conferencing services, communication tools like Slack and remote collaboration apps that can strengthen your team. The right technology in place is critical to communication and engagement in a remote work environment.

5. Prepare to launch your remote work plan — and adjust.

Once you’re ready to launch remote work across your organization, ensure your team can help you communicate crucial dates, guidelines and other information. Allow ample time for everyone to prepare and adapt to these changes.

Your remote work policy and oversight must be continuous. After launching remote work, you should have a plan to ensure it’s working for your teams. Consider employee surveys or an email suggestion box so employees can explain what is and isn’t working for them. Over time, you’ll adapt your remote work strategies to best fit the needs of your unique organization.

Benefits of remote work

Allowing your team to work remotely can benefit your company in significant ways, including the following.

1. Remote work can reduce costs. With employees away from the building, daily operating costs around the office will likely decrease. Rent, utilities, cleaning costs, supply restocking, and equipment upkeep are among the costs you can eliminate or reduce.
2. Remote work can lower absenteeism. Employees who work from home are less likely to take a day off if they feel a bit under the weather. They don’t have to worry about getting their co-workers sick and may be able to accomplish some tasks. Additionally, they won’t have to use paid leave if they must tend to a family member.
3. Remote work can boost productivity. Employees who work from home often report higher productivity levels, resulting in more cumulative efficiency across your company. Employees don’t have to commute to the office, so getting to work on time is easier. They can also spend less time engaging in office chatter and more time completing their assignments. [Read related article: How to Decide if Telecommuting Should Be Permanent]

Remote workers benefit businesses

Remote work is no longer a trend. Business leaders are taking note of employees’ desire for a new way of working and understand that flexibility is required to remain competitive. Companies that want to attract and retain top talent must develop remote work policies that benefit their teams and continue to move the organization toward growth and profitability goals.

Chad Brooks contributed to this article.