Drawing the line on digital: The pros and cons of remote working

You don’t have to search too hard to unearth companies that are embracing remote-first working. Some were early adopters. Software company Basecamp, whose founders wrote a book titled “Remote: Office Not Required” back in 2013, says every employee “is free to live and work in the places they thrive”. Similarly, e-commerce business Shopify says staff “can work from wherever you call home and connect when the sun’s up for everyone on your team”.

The upside of working from anywhere

There are many benefits to remote working: on the business side there are savings on real estate costs, scope to hire from a broader talent pool and potentially greater productivity. For the employee, it offers freedom to live almost anywhere (so long as there’s good connectivity), an end to commuting and the promise of a better work/life balance.

Remote working looks different in every industry and sector. While it’s well-suited to knowledge- intensive industries, such as professional services and IT, in many sectors – from healthcare to hospitality – remote working is rarely an option. Economics plays a role too. According to the World Economic Forum (WEF), in theory around 38% of jobs in high-income countries can currently be done remotely, but only 13% of those in low-income ones.¹

Nevertheless, there’s a clear trend towards more remote working, with WEF forecasting that up to 44% of all work will be remote in the future.

Remote-first is a dramatic shift with significant implications. So how do you know if it’s right for your business? Here are some key areas to consider.

Measuring productivity

This is one of the most discussed issues. The United States Patent and Trademark Office claims individual productivity has increased by 4.4% since it introduced a work-from-anywhere policy in 2012.² Conversely, a study of an IT firm in Asia found that productivity dipped by 20% when working from home (WFH) practices were introduced during the pandemic. Researchers found its staff worked more hours, but their output did not significantly change.³

Ultimately, productivity is often defined and measured differently, so businesses need robust and consistent parameters that enable them to compare how remote workers are performing – without invading their privacy.

Going remote necessitates providing new tools and introducing new ways of working. As Asana’s Rebecca Hinds observes, “leading remote-first companies don't replicate in-office practices remotely – they take a step back and ask: Is replication the right thing to do? In many cases, it isn't.”⁴

This change of approach means factoring in the cost of buying new laptops and software. In many cases, this increase can be offset by savings made from reducing real estate footprints. However, robust cybersecurity procedures are in place to mitigate the risks of employees working in homes and cafes.

Establishing common remote working procedures, such as asynchronous decision-making, a “document everything” culture, and non-linear workdays, is another hurdle. Changes like these take time to bed in, so appropriate training and resources are vital.

Preventing burnout

While collaboration and communication are major challenges, research by McKinsey reveals that an inability to unplug was the biggest struggle for remote workers.⁵ Consequently, business leaders and HR teams must pay attention to employee wellbeing when shifting to remote-first. File hosting business Dropbox has developed a “How to stay well” guide – part of its Virtual First Toolkit – which provides tips on how to stay healthy while working remotely. “Making wellness a priority is one of the best ways to combat the grind,” it notes.

The last 18 months have often been referred to as the great work from home experiment. Arguably, it is too soon to conclude how effective it has been. As we await more concrete evidence about remote working’s effectiveness, business leaders should carefully assess how it will impact their operations and workforce. The future of the company may depend on the outcome.