Remote Work is Catching on Among Employers
By Tom Kozlik, Head of Research and Analytics
With more companies evaluating their in-person and remote work policies, it’s possible their choices will help shape how and where work is being done and encourage employees to relocate. COVID-19 related workplace policy decisions will likely impact highly populated cities and municipal credit.
Companies that are embracing remote or hybrid work models are rapidly accelerating what was already an upward trend before the pandemic. The proportion of employees who worked remotely more than three days a week jumped from 2.4% in 2010 to 4% in 2018. However, about half of all U.S. employees were working from home in May 2020.
Several large companies in management consulting have already determined that their workforces will have more flexibility in where they office. The consulting firm PwC, also known as PricewaterhouseCoopers, recently announced that it will permanently allow its 40,000 U.S. client services to work virtually. Their choice followed another major consulting firm, Deloitte, which has said that all of their 10,000 employees will be able to decide where and when they work.
The reason some employers are shifting to remote or hybrid models may be strongly linked to easier access to talent without geographic restrictions, widening the candidate pool for recruiters. Additionally, eliminating the need for workers to fill office space can often be more cost-effective.
In many cases, productivity rises in remote work environments, yet the chief concern among high performing teams can be employee burnout, not a lack of productivity. Meanwhile, a large percentage of people hope to continue working remotely for years to come.
“The shift to remote work can be life changing for employees….That’s why I am letting my employees do what they want,” said Dan Price, CEO of Gravity Payments in a commentary published by The Guardian.
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