Discussing the Pros and Cons of Remote & Hybrid Working Models

Discussing the Pros and Cons of Remote & Hybrid Working Models

As life begins to slowly return to pre pandemic times, we are starting to see a new normal emerge in regard to remote working and hybrid working models. With employees and employers becoming used to the flexibility, productivity, and savings in costs/company overheads; it almost seems archaic to return to the rigid 9-5 in the office. In recent months, remarks from the Prime Minister and Jacob-Reese Mogg, have highlighted the expectation to return ‘back to normal’ but is this a realistic expectation?

Due to the constant evolving nature of this debate, the narrative of remote working as a positive concept is forever changing. With many different factors to take into consideration such as productivity, company development and the economy, we will be exploring the research to present the pros and cons.

Figures from the UK Workforce:

Before we begin, we should draw attention to figures and survey results on the UK workforce’s opinions. Figures from the Office of National Statistics (ONS) state that 8 out of 10 of people who worked from home in the pandemic, want to continue working in a hybrid model moving forward.

One of the main arguments from an employee perspective, is having a greater autonomy over where and when they worked. Slack’s Future Forum Pulse’s study of 10,000 professionals found that 70% wanted flexibility over where they worked and 500 finance executives in a YouGov survey stated that only 14% consider the office their main workplace, 42% working from home and 44% opted for a hybrid model following the pandemic. These figures imply a shift towards greater employee autonomy over their working week, wanting a mixture of both working from home and the office.

Pros of Remote/Hybrid working

Work Life Balance and Flexibility:

78% of those surveyed by the ONS confirmed that hybrid working allowed them to gain a better work life balance.

The average commute for those in London is 81 minutes a day , with a 5 day working week that equates to 405 minutes (6.75 hours), nearly a whole working day spent travelling. Taking the commute away gives employees more free time. A busy commute can increase stress levels and can be draining at the end of a long day, contributing to burn out. Cutting this down to only a couple of days a week makes travel more manageable or can lead to some employees accepting a job further afield.

Market research from Envoy highlighted that 56% of companies surveyed offered employees choice over the days they chose to go into the office. Workers have greater flexibility to choose the days that suit them and can schedule in other commitments e.g. a doctor’s appointment or taking children to school. This helps accommodate external commitments into the working week without affecting work. The increase in flexibility has also helped to improve diversity and inclusion, making it easier for mothers and full-time parents or those with disabilities to get back into the workplace. Companies that offer a better work life balance and flexibility have greater employee satisfaction.

Productivity:

Another strong case for remote and hybrid working is the concept of productivity. The previous office environment was structured; regularly monitored by senior members of staff, in a setting that encourages productivity. However, it can be argued that workers feel more productive at home as they take control of their working day, have greater flexibility and are in a less pressured environment.

The ONS stated 52% of hybrid workers felt they completed their tasks quicker at home due to fewer distractions. Another professional study by Professor Nicholas Bloom at Stanford University showed that out of 16,000 workers; working from home increased productivity by 13%.

No alt text provided for this image

So, if there is so much evidence to support productivity, why is that one of the most scrutinised aspects? It comes back to the old narrative that micromanagement and supervision is needed to keep workers in line. This is largely outdated; specifically, because for the past 2 years this model has been successful. A Metro interview with Dr John Blakey, who helps change CEO leadership styles to be more trustworthy, stated:

"Old-style bosses are still relying on trust in power, rather than the power of trust. People don’t want to be told what to do anymore, they want to be empowered to be trusted in the job they do and to deliver the results required of them".

This article also referenced those leaders who do trust their workers, have greater outcomes on productivity regardless of the working environment. It is based on the employer and employee to work together to get results.

No alt text provided for this image

Employer Benefits/Wider Talent Pool:

With workers no longer being tied to a physical office this is beneficial for employer costs as they scale back their real estate footprint. We have seen a number of firms in the City consolidate their office space during the pandemic with little appetite to re-expand despite extensive hiring levels since.

Remote working has also seen great benefits for those living in more rural and Northern cities, as there are now more job opportunities. Sky News document that in Burnley, Lancashire it is now the second-best area in the UK to recruit from. Since March 2020 there has been a 391% increase in the number of jobs that people from Burnley can do remotely. The move to hiring people from outside of major cities will help those in Northern cities or smaller towns gain those positions which prior to the pandemic may have not been accessible. This helps to aid the Government’s plan to “level up’’ between the North and South.

Cons of Remote/Hybrid Working

Potential Pay Cuts/Offshoring:

A Guardian article outlined how working from home allows employers to hire from outside of cities and can attract talent from further afield. With the increase in hiring from across the country and employees moving out of London, some firms have taken the step to reduce wages up to 20% for those working from home as they no longer need the London living wage.

Remote working could encourage people to leave metropolitan cities and move to a potential slower pace of life or cheaper cost of living, especially if the city becomes less vibrant. Likewise, if a role can be done more cheaply from a remote UK location, could that firm then choose to hire from an even cheaper low-cost location overseas? When looking for cost savings in the future firms could more easily offshore that headcount.

Urbanisation and the Knock-On Effect to Cities:

Additionally, the concept of remote working and moving out of major cities can have a deeper effect on these areas that rely on passing trade. Particularly for large cities like London whose shops, hospitality and nightlife are largely reliant on commuters. A Forbes article shows results from research on the affects remote working has upon major cities:

‘The scale of the impact understandably differs significantly depending on the area.?For instance, the researchers calculated that if everyone in the City of London worked from home that could work from home, they would lose around 70% of their labor force.?This works out at over £9 billion in annual earnings.?Even if those workers only did so for one day each week after Covid, it still represents nearly £2 billion in lost economic activity.’

The knock-on effect is greater than one could imagine. Let’s use an independent coffee shop as an example. With more people working from home, less people are getting their morning coffee, leading to staff cuts and potentially shops shutting down due to lack of revenue. Now imagine this as every independent coffee shop, restaurant, newsagents etc; the ripple effect would be catastrophic, with their trade decreasing from 5 to 2 days per week.

Distractions:

For individuals, remote working means their daily life is contained within the same 4 walls, with little separation between work and home life. This is compounded in London where people often live in small apartments with shared living spaces. Remote working implementation consultant Marilyn Devonish recommends ‘demarcation of spaces, and the importance of creating a separation for the space both physically and psychologically’. Creating separate environments will help increase productivity and boundaries of space. Even creating a fake commute e.g. a walk before starting work from home would help mimic a ‘normal’ working day, creating that mindset and more boundaries. As creatures of habit, if workers introduced their office working routines into their working from home days, it can help install a professional working environment.

Collaboration and Isolation:

An interview in Computer Weekly stated that those interviewed viewed collaboration as the biggest challenge of remote working. The quick task of asking a colleague a question which can be resolved in a couple of minutes, now could take hours or days for a response over email, phone, or video. The flow of collaborating with colleagues is no longer natural nor impromptu, causing potential issues with a deadline or leading to numerous unfinished tasks at any one time. The graph of advantages of working from home (inserted above), indicates that few people who work from home rate collaboration highly.

This concept of being physically away from colleagues can also lead to isolation and loneliness. In our adult lives, friendships often stem from the workplace and being around like-minded individuals. The toll this can have on an employee’s mental health can be detrimental to their ability to work effectively. Remote working can be very isolating, impacted more so when other colleagues work from home, so even if they do travel into the office they are sometimes still working there alone.

Early-Stage Development and Opportunity for Promotion:

The struggle to collaborate can further disadvantage new joiners and employees in training/early-stage development. New starters need to understand what is expected of them, learning new systems, asking questions and have general support until they feel confident in their role. Starting a new job in isolation can add additional stress and complications which could lead to longer learning time or isolation from other colleagues. Sitting amongst more experienced team members will help someone feel more supported then over Zoom. ?

Weaker relationships between employees and senior members of staff, can also lead to a lack of career progression. A BBC article highlights the main reasons for less internal promotions is lack of relationships with managerial staff and less opportunities to demonstrate skills. Being directly seen and visible on a regular basis will increase your chances of being recognised, ability to make an impact and to be acknowledged for your hard work compared to those who are ‘out of sight, out of mind’.

Office Culture:

One of the biggest advantages of working from the office is the feeling of camaraderie. The amount of time spent at work means it’s natural to grow bonds with your work colleagues, however, remote working weakens these ties. Talking over WhatsApp isn’t quite the same as office conversations and daily support. Working from home you are separated and isolated from this. Speaking from experience, a large part of our own company culture is our strong team spirit and that we regularly socialise together. Being away from this environment can make one feel isolated and more like a number than a valued member of the team. The human element needs to be maintained for company retention and growth.

No alt text provided for this image

To Summarise:

What is becoming clear is that there’s not a one size fits all. New working models can offer balance and flexibility for both the company and their employees but there are so many variables that it’s difficult to apply one concrete policy across an entire organisation that caters to everyone’s needs. It often depends on the firm, the team, the role and more specifically a person’s own personal situation. That’s why most companies seem to have settled on a Hybrid model of say 2-3 days per week in the office which provides flexibility for employees but still preserves the ability to collaborate and build a team/office culture, with exceptions agreed on a case-by-case basis. Experienced employees are often granted more flexibility with remote working, but with a younger workforce only just starting their careers its vital that they have the support around them in order to flourish and gain the same career development that their senior colleagues were afforded pre-pandemic.?

Only time will tell if this is an efficient and sustainable model. It will be interesting to monitor the shift away from major cities and with the loss of daily travel the subsequent impact upon the economy. What we have observed in recent months is a more vibrant return to the City and the bustle of bars and restaurants is great to see again. From our own personal experience, the team really enjoy the days when we’re all in the office together, bouncing ideas off each other and having fun whilst we work; all things you really miss while remote working on your own. It’s healthy to see new businesses springing up again, where so many had closed after the pandemic. There was nothing more upsetting to see than the boarded-up properties of independent businesses, which had once been City staples. Whilst the changing world of work has brought benefits to so many, hopefully we can settle on a balance that still allows for the things we all enjoyed pre-pandemic, with vibrant offices and Cities making a return, even if only Tue-Thurs!

Laura Cooke, Marketing Executive

Holly Horton

Associate Director - Java/C++/Python HFT Specialist @ Vertus Partners - Connecting top talent with the world’s leading Investment banks, Fintech, Quant and Systematic Trading firms.

2 年

Nice Blog Laura - looking forward to more!!!

Robert Morley

C# / Blockchain Engineering and Product Specialist @ Vertus Partners - Connecting top talent with the world’s leading Investment banks, Fintech, Buy Side and Systematic Trading firms.

2 年

Good Work!

Richard Thorndyke

Vertus Partners - Connecting specialist Technology and Financial Services talent with the world's leading brands

2 年

Great article Laura

要查看或添加评论,请登录

社区洞察

其他会员也浏览了