Working from home has been around for much longer than most people think. Strictly speaking, hunter-gatherers and crop farmers were among the first to practice their professions right where they lived. Even during medieval times, working-class shopkeepers set up their homes as workplaces.
Of course, the modern work-from-home (WFH) model as we know it began much later when advances in telecommunications technology in the 19790s gave rise to the concept of “telecommuting”. By the 1980s, numerous call center employees were performing their work functions at home.
The founder and CEO of Finexis Tech, Prachit Parikh, is one of the most vocal proponents of the WFH model. An Axiom developer with an extensive background in database management, cyber security, and information technology, Prachit is a firm believer in remote work’s potential as a long-term alternative to office-based work.
For Prachit, working from home offers many clear benefits for employees, foremost of which is work-life balance. However, he stresses that remote work could also be advantageous for employers, given the potential for increased productivity and reduced operational costs.
Even so, there are some compelling arguments for the continuance of in-office work. While working from home could very well be the wave of the future, it’s important to address its drawbacks compared to the traditional office-based work model.
In this article, we dig deep into the relative advantages and disadvantages of working from home. Drawing from real-world statistics, we explore why remote work may or may not be ideally suited to the demands of the modern work environment.
Why WFH is a Game-Changer
Working from home offers many significant benefits, making it an appealing option for employers as well as employees. These include:
1. Higher Productivity, Increased Flexibility
Critics of the WFH model suggest that it can result in reduced productivity. But data actually shows the opposite to be true. A 2023 survey conducted by Owl Labs revealed that nine out of ten employees reported equal productivity levels when working at home. Some felt that they were even more productive in a home environment.
Another study conducted by Stanford University researchers revealed that remote workers were 13% more productive than their in-office counterparts. In general, they took fewer sick days and were able to conduct more calls per shift.
For many workers, the absence of workplace distractions and the opportunity to work when they are most productive greatly improves their performance and work quality.
2. Better Work-Life Balance
The increased emphasis on better work-life balance makes WFH a more attractive option for modern workers. According to a Gallup poll, nearly 60% of remote employees experience higher levels of job satisfaction than in-office workers.
Buffer’s 2023 State of Remote Work also reports that 91% of respondents preferred working remotely due to the enhanced work-life balance it offers.
One significant factor in this shift is the reduced commuting time afforded by WFH. With travel times in the US averaging 27 minutes each way, employees are understandably eager to have more time for themselves and their families.
3. Reduced Costs
Remote workers save an average of $4,000 annually by working from home, due to the reduced necessity of commuting, eating out, and purchasing work clothes. For many, these savings are a compelling reason to opt for a WFH model.
WFH clearly offers significant cost savings for employees. However, employers can enjoy similar benefits as well.
Global Workplace Analytics estimates that employers can save about $11,000 annually simply by allowing their employees to work remotely 50% of the time. By doing so, they can cut their office space and utility expenses significantly, not to mention eliminate the use of workplace amenities.
4. Improved Employee Quality
Offering a remote work option gives employers better opportunities to hire workers from a larger pool of talents, frequently without geographical restrictions. A study conducted by LinkedIn shows that offering remote work gives companies 2.6 times more views on their job postings.
5. Environmental Benefits
Another compelling reason to go remote is the reduced environmental impact this work model makes possible.
Global Workplace Analytics researchers found that greenhouse gas emissions can be reduced by 54 million tons a year if workers are allowed to alternate between working from home and the office. This reduction is equivalent to taking nearly 10 million cars off the nation’s roads.
Why In-Office Work Remains Viable
Although WFH has clear advantages, many companies and workers still prefer working in an office for the following reasons:
1. Collaborative Environment
The typical office setup is admittedly better suited for collaboration and innovation than a WFH arrangement, in which such interactions can be difficult and even impossible to undertake.
Employees are also generally more likely to generate ideas and collaborate in an office setting. For industries that are heavily reliant on close interaction between team members, having employees working in the same physical space is vital.
2. Clearly Defined Work-Life Boundaries
WFH is obviously a more flexible work model for many reasons. However, the blurring between personal and professional life is a significant drawback.
A survey conducted by the American Psychological Association reveals that 44% of remote workers worked longer hours at home than in the office. For some employees, the difficulty in transitioning from “work” to “home” modes can result in eventual burnout.
3. Enhanced Interaction
The absence of face-to-face interaction can be detrimental to the development of a strong company culture. A 2023 Buffer report showed that 20% of remote workers developed feelings of isolation due to the reduced opportunities for social interaction.
4. Opportunities for Learning and Instruction
One of the key benefits of an in-office working model is accessibility to team-building, mentorship, and informal networking opportunities. Despite being a fierce advocate for the WFH model, even Prachit Parikh would admit that these can be vital for career growth and professional development.
Furthermore, the hands-on mentorship and learning experiences available in an office setting can be beneficial for new or relatively inexperienced employees. These workers also tend to derive the most benefits from real-time feedback offered by mentors and colleagues in the workplace.
Why WFH is Here to Stay
The benefit of in-office work notwithstanding, WFH is unlikely to go away due to the following reasons:
1. Technological Advances
As technology advances, WFH will only become more logical and viable. Even today, productivity tools and project management platforms allow far more efficient communications, collaborations, and progress tracking as compared to only a few years ago.
2. Hybridization
Hybrid models that combine WFH’s flexibility with an in-office model’s collaborative benefits further emphasize the viability of remote work. A 2023 report by McKinsey shows that 70% of the companies surveyed intended to maintain the hybrid work model after the pandemic.
3. Flexibility Requirements
Employees nowadays demand more flexibility from their employers and work environments, and most would likely be unwilling to go back to the old ways. A survey conducted by Prudential showed that if the remote work option was rescinded, 42% of workers would resign and seek other employment opportunities.
4. Proof of Productivity
The proof is in the numbers. The argument that WFH reduces productivity simply doesn’t hold water. On the contrary, productivity among remote workers increased by 47% from 2020 to 2023 as revealed by a study by Prodoscore. For companies that truly value productivity, WFH deserves serious consideration.
WFH: A Model for the Future
For Prachit Parikh, the statistical evidence supporting the shift to WFH is undeniable. Although many continue to resist the trend, it’s difficult to argue against the overwhelming data pointing to the model’s sustainability and viability.
This is not to say that the in-office is totally obsolete. Prachit would be quick to point out that the typical office setting offers clear advantages for collaboration and social engagement.
On the other hand, the increased productivity, greater flexibility, and cost savings of remote work are worthy of consideration.
Given the relentless advance in technology and the shift in employee expectations, it’s safe to say that WFH is here to stay. And for employees as well as employers, its potential as the work model for the future is becoming increasingly difficult to ignore.