If the US job market weakens further in the coming year, companies may reconsider their policies on remote work. There are generally two perspectives on working from home among executives: some see it as beneficial for employee happiness and productivity, while others believe that company culture is best fostered in an office setting. The pandemic has led to an increase in remote work, as workers were able to negotiate flexible arrangements in a tight labor market.
Despite the potential for companies to reconsider remote work policies in the face of a weakening job market, it appears that remote work will remain a prominent part of the workforce in the long term. According to Gallup, it is projected that approximately 75% of workers who are capable of working remotely will continue to do so on a hybrid or fully remote basis in the long term.
Here are some of the top components as to why experts predict that remote work will continue to be a significant part of the workforce in 2023:
Retaining Talent:
Allowing remote work has become essential for retaining top talent, as a study published this summer by researchers at Stanford University found that hybrid work boosts employee satisfaction and productivity, leading to a 35% reduction in turnover. Further backing this research, and according to Gartner's Caitlin Duffy: "employees experienced new levels of fulfillment working from home." Caitlin further notes that employers are struggling in finding reasonable justification for pulling back on remote work.
Additionally, high turnover rates, which remain above pre-pandemic levels, can be costly for companies, especially in a tight labor market where retaining top talent is crucial. Prithwiraj Choudhury, an associate professor at Harvard Business School who studies working remotely, notes that "in any economic environment, top talent always has outside options."
Recuiting Top Talent:
Remote work allows companies to recruit from a larger geographic region and a wider talent set, which can be especially beneficial for specialized roles where qualified candidates may be scarce. It also gives employers, which may have difficulty attracting talent to a specific location, a better chance of attracting workers from the silicon valley and other technology centers. Providing flexibility is also a powerful mechanism conduive to fostering greater diversity, equity, and inclusion, particularly for groups such as the disabled who may have previously been excluded from the labor force. Parents and other minorities groups have also reported significant upsides derived from working remotely.
