- within Employment and HR topic(s)
- with Senior Company Executives, HR and Inhouse Counsel
- in United States
- with readers working within the Insurance, Healthcare and Property industries
The COVID-19 pandemic may be behind us, but many of the changes it brought to the workplace remain. One of the most significant is the widespread acceptance of remote work. With the touch of a button or the click of a link, professionals can meet with clients across the country—or across the globe—share documents instantly, execute contracts electronically, and collaborate in real time without ever leaving home.
These changes, born of necessity, enabled businesses to continue operating during government shutdowns, social distancing mandates, and widespread fear and uncertainty. What began as an emergency response evolved into a long-term workplace model for many organizations.
Now, six years after the initial shutdowns, employers continue to ask: Should we return to the office? Should our goal be to restore pre-pandemic norms, or has remote work permanently changed the way we define work?
The answer is workplace specific. However, significant data collected over the intervening years on remote work provides some insight into the effectiveness of remote work arrangements, depending on the nature of the job, the organization’s culture, and the needs of both employers and employees. Harvard Business School researchers analyzed surveys of thousands of people in the workforce in 2021 and 2022 and found that employers became more comfortable with remote-worker productivity over time.1 Harvard Business Review summarized the then existing research, noting that fully remote workers may be approximately 10 percent less productive than office workers, but remote workers had higher retention and lower turnover.5 A 2024 randomized controlled trial led by Stanford University found that hybrid workers maintained productivity, while fully remote arrangements had mixed results in productivity measurements.2 The Standford Study further supported that workers with hybrid work arrangements were retained longer and had lower turnover rates. Below is review of typical benefits and challenges to remote arrangements.2
| Benefits 1-4 | Challenges 1-4 |
| Greater Flexibility – Higher job satisfaction without reduced performance. | Reduced Collaboration – Less spontaneous interaction may hinder innovation. |
| Less Commuting – Saves time and reduces stress; longest commuters benefit most. | Communication Challenges – Fewer non-verbal cues and more intentional communication needed. |
| Expanded Talent Pool – Recruit regardless of geography. | Building Workplace Culture – Harder to develop culture and engagement remotely. |
| Lower Operating Costs – Potential savings on facilities and turnover. | Training and Mentorship – Informal learning is more difficult remotely. |
| Higher Retention – Hybrid workers were about one-third less likely to resign. | Isolation and Mental Health – Fully remote workers reported higher loneliness and anxiety. |
|
Business Continuity – Better prepared for emergencies and disruptions. |
Cybersecurity Concerns – Remote work requires stronger security controls. |
The Bottom Line
The strongest evidence to date suggests that hybrid work offers many of the advantages of remote work while preserving the benefits of a traditional in-office work environment. Rather than striving to return to pre-pandemic norms, employers may be better served by evaluating each position individually to determine whether remote or hybrid arrangements enhance productivity, improve retention, attract qualified talent, and continue to meet business objectives.
Most of the selected references are available online, and several are the subject of secondary articles. For anyone interested in additional reading on this subject, the Stanford Study published in Nature is an informative read.
Footnotes
1. Alexander W. Bartik, Zoë Cullen, Edward L. Glaeser, Michael Luca & Christopher Stanton, The Rise of Remote Work: Evidence on Productivity and Preferences from Firm and Worker Surveys, Journal of Economics & Management Strategy 33 (2024): 786–811. (Originally circulated as Harvard Business School Working Paper No. 20-138.)
2. Nicholas Bloom et al., Hybrid Working from Home Improves Retention Without Damaging Performance, Nature 630 (2024): 920–925.
3. B. Wang et al., Achieving Effective Remote Working During the COVID-19 Pandemic: A Work Design Perspective, Applied Psychology 70 (2021): 16–59.
4. National Institute of Standards and Technology (NIST), Guide to Enterprise Telework, Remote Access, and Bring Your Own Device (BYOD) Security, NIST Special Publication 800-46 Revision 2 (2016), together with NIST Cybersecurity Framework guidance.
5. Bloom, Nicholas, Jose Maria Barrero, Steven J. Davis, Brent Meyer & Emil Mihaylov. Survey: Remote Work Isn’t Going Away—and Executives Know It. Harvard Business Review, 28, 2023.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
[View Source]
