Working from home on a tear since the pandemic  

More people than ever WFH – but is it a good thing? 

9th June 2024

WFH Research in association with Stanford University, has conducted research on US-based residents of working ages since May 2020, uncovering trends on working from home (WFH). 

The research found that Covid and the ensuing lockdowns that impacted many, meant that levels of WFH increased at a rate ‘equivalent to almost 40 years of pre-pandemic growth.” 

Stanford scholar Nicholas Bloom commented that the huge increase in the number of employees WFH ‘may be the largest change to the U.S. economy since World War II.’ 

Indeed, for many office workers, the change has been profound. 

There has been an enormous shift in working practices, with most offices before the pandemic offering zero or close to zero WFH allowances which was widely accepted as the norm. 

In 1965, the StanfordReport commented that less than 1% of people worked from home.  

Before Covid, only 5% of the US workforce WFH, which has become approximately 30% today. 

“In some ways, one of the biggest lasting legacies of the pandemic will be the shift to work from home…”

Nicholas Bloom

Perhaps unsurprisingly, WFH Research found that remote working is most common in those firms which were founded during the beginning of the pandemic in 2020 and when WFH for many, was encouraged. 

These newly formed companies with smaller workforces may not have had the same issues as older companies not used to remote working and which found it more difficult culturally to make the transition.   

However, WFH Research found that employers are still ‘offering fewer’ remote jobs than employees want, with more of an onus on onsite jobs. 

As of Spring 2024, over 60% of employees were recorded to be working full-time on site. 

Older workers, those in the 50s and 60s were found to be more likely in the office than their younger colleagues – though this may stand to change moving forward. 

Research from Seramount found that, despite stereotypes, only 11% of Gen Z ‘would prefer to be fully remote’. Perhaps due wanting to socialise with colleagues and to benefit from the training and mentorship that is more easily achieved from being in an in-person setting.  

WFH enhances wellness    

Many may argue that if jobs can be done remotely, employees should be given the choice of how much time they spend at the office or off-site.  

According to research from Owl Labs and Global Workplace Analytics, over 6 in 10 of employees feel more productive when working remotely. And over half would take a reduction in pay in order to have the freedom of choosing where they work. 

Elsewhere, research from Flexjobs found that 38% of employees who can work flexibly have a ‘healthy sleep schedule’ and almost half (44%) aim to have a balanced diet, compared to 31% and 40% respectively who cannot work flexibly. 

This shows that working flexibly for some positively enhances wellness and general lifestyle goals.    

WFH causes loneliness

Of course, there are also disadvantages to remote working.

Forbes reports that when working from home, 26% cited a challenge being ‘more distractions’ and almost half, (48%) reported that it was ‘harder to work with others’.

For some, it’s simply easier and more inspiring to work with people. More time at home can also promote feelings of loneliness and isolation especially those who live alone already.

There is also a wider economic impact. With less people commuting into city centres, the businesses which depend on this traffic for coffee, lunch and other services, will suffer. It’s an ongoing issue reported on widely across the US and internationally. 

This rising trend of WFH is only just getting started and whether it continues to grow at pace or not remains to be seen. It brings both advantages and disadvantages for workers and employers, the benefits of which can be debated. 

It also has a wider societal impact that will need to be managed with care.   

References: 

Barrero, Jose Maria, Nicholas Bloom, and Steven J. Davis, 2021. “Why working from home will stick,” National Bureau of Economic Research Working Paper 28731.https://wfhresearch.com

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