Working from home: Here to stay? by Dylan Byrne
While the majority of people have grown accustomed to working from home since the announcement of COVID-19 restrictions in March, it remains to be seen whether this will be a long- term trend. While employees may enjoy certain advantages of teleworking such as reduced expenses associated with commuting and accommodation as well as a better work-life balance, there are considerable advantages associated with working in an office, such as networking, certain cost savings, etc.
While employer’s fears about remote working productivity appear to be unfounded so far, there are a number of advantages and disadvantages associated with allowing employees to continue working from home. These range of factors will likely result in home-based working increasing slightly in the future but not revolutionising the workplace. It is likely that many workers will decide to work in a hybrid model, with people more likely to work from home as they advance in their career and grow older.
While telecommuting may seem like a new occurrence, it has been rising steadily in Ireland since 2017, partially due to the fact that the country hired at the fastest rate in Europe during the period 2017-2020 and thus many companies ran out of office space for employees. Indeed, before the pandemic struck more than 500,000 employees were home-based workers. This has increased considerably since March. However, amongst the newest workers who have swapped the bustling city centre for the comfort of their own study room at home, only 12% want to continue working from home on a full-time basis, according to a study by AIB/ Amárach 1. In contrast, 83% of people wish to remain working from home in some capacity, leading to the suggestion that most people enjoy remote working sometimes, but also enjoy the social environment of the office place, change of scenery, and other advantages of hybrid working.
Why would an employee prefer teleworking? For example not having to commute and having a more flexible work schedule are undeniable benefits. Some people might also prefer perks such as cooking and exercising at home, while those with a young family might have more quality family time. Ultimately, the main advantages are personal, and whether you prefer working from home primarily comes down to lifestyle and time management.
While people may think that they are saving on commuting, office attire and other expenses by staying at home, there are certain hidden costs which must be determined when assessing whether remote working is cost-effective. Most offices, for example, supply all stationery to employees. This cost burden now falls on the worker. People working from home must also consider that their utility bills may be higher as they are spending more time at home, especially during the winter. Wear and tear on IT equipment is another burden that will also fall more heavily on employees than employers.
People who continue to work from home also lose out on networking, a valuable tool in corporations which can make working on projects easier, as well as enabling further career advancement. Furthermore, employers have been shown in the past to favour workers who work in the office to workers who work from home when it comes to deciding who is next in line for a promotion. While they don’t doubt that you are diligent, they are more familiar with the person who sits right beside them, and can physically see the effort they are putting in every day.
Employers also have concerns about teleworking. While it has been proven that people are more productive when they work from home, it can be harder for demanding bosses to ask their employees to take on more work tasks when they are not in front of them, as it is easier to say no when you are not face to face. Many corporations also have security and data concerns regarding different internet connections being in contact with personal client information.
However, remote working arguably has more benefits to it for the employer than the employee. Apart from the savings costs on items such as insurance, energy, rental space, etc. , offering employees the chance to work from home at least sometimes may also lead to reduced absenteeism. If somebody has the mild flu and is too sick to come into work but is still well enough to carry out their duties from home, this is a win-win situation for both parties. Furthermore, employers will probably have to offer remote working or partially remote as an option, considering the majority of people want it in some form in the long-term and because competitors are likely to offer it.
In conclusion, the working from home trend seen in 2020 is likely to continue into the future, but office workplaces will likely not be a thing of the past. It is probable that younger employees, who are more in need to meet co-workers face-to-face on a regular basis and are less able to take on the extra costs associated with remote working will be more eager to work in the office, while older people who are more established in their career will likely opt to remain home for more days of the week, as it is easier for them to maintain a work-life balance.
Sources
AIB(2020) AIB Sustainability Index: Covid impact resulting in consumers making more sustainable decisions. 13/07/20. Available from: https://aib.ie/social/blog/2020/07/aib-sustainability-index-covid-impact-on-consumers-making-sustainable-decisions
About the Author
Dylan is a fourth year business student in Trinity College Dublin. Dylan has accounting experience with EY where he won the 2019 EY SIP Business Challenge. In addition, Dylan was previously Consumer Staples sector manager of the Trinity Student Managed Fund, where he oversaw sector holdings and identified future investment opportunities in the consumer industry.