The other side of working remote
In 2023, 15 million worked fully remote, another 14 million in hybrid arrangements in the USA. (1)
The % working remote is highest among those with bachelor’s degrees. (1)
It’s highest for tasks with streamlined processes like payroll processing, purchasing, recruitment, tech support and software defect resolution.
Those working arts, design, entertainment, sports and media positions were also working 3.9 days a week remotely in 2022. (1)
Employees working remote benefit from lower stress and cost of commutes, with more time for themselves and their families. Some have even relocated to other cities and communities for a better quality of life.
While these are the positives, there is also a flip side of remote work.
Missing the bonding with colleagues
The one thing which most remote workers miss is the opportunity to meet with and build relationships with their colleagues.
The trust and support of these relationships can be of immense help in the performance of work.
These are also the voices which speak up for you. It could be during a performance evaluation, for better work assignments, or in defense when something does not quite work out well.
Some of these relationships also transcend the office walls and become longstanding friends.
Having to work harder and more
The ability to be seen by peers and especially with managers gives more latitude even if the results are less than expected but she/he is seen to be working hard towards them.
A 2019 paper at the University of California, Santa Barbara, showed that being observed by others while at work resulted in positive outcomes for employees “because it is a strong signal of their commitment to their job, their team and their organization”. (2)
In contrast, remote workers are measured purely on output delivered. They end up working harder to ensure that their output meets or beats expected benchmarks.
A survey by Alliance Virtual Offices showed that remote workers do nearly 50% more overtime compared to in-office workers. (3)
Compensation differentials
Remote workers are 38% less likely to receive bonuses. (3)
“Management and supervisors seem to be biased when it comes to judging the quality of work produced by remote employees” (3)
When a worker is seen in the office every day, it can be easy to judge. All things being equal, those who a manager knows better are seen as more worthy (Martin, 2021).
Slower promotions
When it comes to being promoted, those working in proximity and more engaged with their managers have a distinct edge.
A 2015 study conducted in China, by the Stanford Graduate School of Business found that while people working from home were 13% more productive, they were promoted at half the rate compared with their colleagues who worked from office. (2)
“Those who weren’t in the office, didn’t develop relationships and managerial skills as readily, or didn’t have the opportunity to demonstrate those skills. Plus, when the people giving out the promotions aren’t getting any facetime with remote workers, you’re basically forgotten about. Out of sight, out of mind”.” (2)
This advantage goes away when entire teams are remote.
However, for the ambitious, finding wants to be in close contact with their supervisor and colleagues will give an edge when it comes to career progression.
The risk of offshoring and outsourcing
A majority of remote workers are engaged in tasks with clear and repeatable processes.
If these tasks can be performed remotely, the remote could also be an offshore location, or even the premises of a third party.
To migrate structured tasks which are unique to a company will require transfer of knowledge and also knowledge retention. Proprietary information will need to be protected. Maintenance of custom software, bid management, and financial accounting are examples of standardized tasks with company unique nuances.
These can be candidates for in house / captive facilities in lower cost locations – Idaho, Costa Rica, Hyderabad, Cebu.
Then there are others, also process driven and structured but have little which is company unique. Many companies perform tasks like purchasing, payroll, recruitment, and deskside tech support almost similarly.
These can be moved to specialized providers like Wipro, ADP, or Mercer who perform the same work for multiple companies and bring the benefits of scale and investments in automation and innovation.
In closing
A case can be made for remote work on standardized tasks with clear processes and responsibilities.
Workers get a better quality of life. Employers save on infrastructure and can recruit from a larger pool.
There is a flip side of remote work though.
There is the loss of in person engagement with colleagues and the opportunity to build professional networks.
Out of sight can be out of mind, requiring more work and superior output compared with on premise workers.
Studies also show that remote workers are at a disadvantage in compensation increases and career progressions.
Finally, tasks which can be performed remote can also become candidates for offshoring and outsourcing – because they are standardized and can be performed remotely!
Keep swinging!
References
1. Work From Home Data Shows Who's Fully Remote, Hybrid and in Person - The New York Times (nytimes.com)
You may also want to read - Why should you return to office? (valencoinc.com)
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