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Trend Check-In: The State of Remote Work
When the pandemic hit, and employers sent their workforces home to work in their home offices, kitchens, and bedrooms, many organizations announced that the change would be permanent—such as Airbnb and Twitter in 2020.
But, as time has passed, many organizations have walked their initial work-from-home proclamations back—still offering flexibility and hybridity but with more stipulations.
Twitter is the most extreme example of this backshift towards in-person work. Elon Musk’s first email to Twitter staff, after he bought the social network in October 2022 and took over as CEO, ended remote work for Twitter employees in a mere instant.
Other workplace changes have been less drastic, with companies quietly shifting their policies from fully remote to “remote-first” or “hybrid,”–meaning some level of in-person interaction is expected (even if minimal).
The pandemic was an entirely new event for businesses everywhere; it was a mass disruption. There was no playbook for employers on how to operate through a pandemic, so business leaders made their best-educated guesses; they adapted.
In the moment, remote work was the best solution for most organizations, but now that the world has returned to something resembling normal, employers are taking another look. And similarly, employees are again rethinking how work fits into their lives.
Below are the key remote work statistics that show how it’s all shaking out—and that could give us a glimpse into the future of work in America.
On Where People are Working
While some companies are reopening offices and pushing employees to come back in, overall, there are increases in remote position offerings and flexible work options in industries that didn’t previously offer them.
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Currently, five in 10 employees are working hybrid (part of their week at home and part on-site). That number is expected to increase in the coming years.
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According to Owl Labs’ State of Remote Work report, 16% of companies are remote-first, with three in 10 employees working exclusively from home. Experts predict that there will be 36.2 million Americans working remotely by 2025.
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Only two in 10 employees currently work for an office-first employer, and about the same number is expected to be on-site in the future—down from a whopping 60% in 2019.
For a more detailed look at how and where Americans are working, click here.
On Productivity
During the early days of remote work, many argued that this new work model would increase employee productivity–for the ways that it cuts down on commutes, gives people distraction-free time to focus on personal work, and improves work-life balance. But, now that employees are a few years into hybrid work, opinions about productivity are mixed.
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40% of workers believe that they’ve been more productive while working at home, as opposed to the office.
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84% of workers report feeling happier when working remotely, which could positively affect productivity.
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But, a new study from Microsoft found that 85% of leaders say the shift to hybrid work has made it challenging to have confidence that employees are being productive.
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And the U.S. Bureau of Labor Statistics reported that productivity dropped in 2022 after a steady year-over-year increase in the years leading up to the pandemic.
In sum, these statistics point to employers needing more time and data to determine how remote work affects employee productivity.
On Employee Well-Being
Employee mental health, particularly in the form of burnout, have become increasingly important to employers in recent years—and to employees. In fact, the American Psychological Association reports that 81% of employees said they look for workplaces that support mental health when seeking new job opportunities. Here’s how remote work is affecting employee well-being after the pandemic.
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75% of employees believe they have a better work-life balance working remotely, according to Zippia.
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62% of workers feel remote work positively affects their work engagement.
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57% of employees report feeling less stress and 54% report improved morale (compared to how they were feeling working in-person).
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Work-from-home has reduced absence rates for 56% of employees and 50% have taken fewer sick days.
So far, remote and hybrid work appear to be improving employee well-being–and that improvement should have lasting impacts on overall engagement, productivity, and retention.
On the Future of Remote Work
Despite the mixed reviews, most economists and employers agree: remote work is here to stay in some capacity. And, most believe that it will only increase in popularity–especially now that employees have more power in the workplace equation.
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85% of managers believe that teams with remote workers will become the new norm in the business world.
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By 2025, an estimated 70% of the workforce will work remotely at least five days of a month.
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A survey conducted by background company GoodHire found that 85% of US workers prefer job listings with remote work options.74% of workers would want permanent work-from-home options available to remain at their current jobs.
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On a more international scale, data from Slack’s future forum shows that 16% of workers worldwide want to remain fully remote, yet a staggering 72% of employees want hybrid work options.
The numbers make it clear: remote and hybrid work is here to stay. Employers will continue to hone their work-from-home strategies to attract top talent, retain employees, and drive business outcomes.