Some work remotely
- For most workers, some activities during a typical day lend themselves to remote work, while the rest of their tasks require their on-site physical presence.
- According to a study conducted by McKinsey In the US workforce, just 22 percent of employees can work remotely between three and five days a week without affecting productivity, while only 5 percent could do so in India.
- In contrast, 61 percent of the workforce in the United States can work no more than a few hours a week remotely or not at all. The remaining 17 percent of the workforce could work remotely partially, between one and three days per week.
Change can have far reaching consequences
- Currently only a small share of the workforce in advanced economies - typically between 5 and 7 percent - regularly works from home.
- A shift tp 15-20 percent of workers spending more time at home could have profound impacts on economies.
- More people working remotely means fewer people commuting between home and work every day. This could have significant economic consequences including on transportation gasoline and auto sales, restaurants and retail urban centres, demand for office real estate and other consumption patterns.
As changes got announced, changes happened
- As tech companies announced plans for permanent remote work options, the median price of a one-bedroom rental in San Francisco dropped 24.2 percent compared to a year ago, while in New York City, which had roughly 28,000 residents in every square mile at the start of 2020, 15,000 rental apartments were empty in September, the most vacancies in recorded history.
- Remote workers may also shift consumption patterns. Less money spent on transportation, lunch, and wardrobes suitable for the office may be shifted to other uses. Sales of home office equipment, digital tools, and enhanced connectivity gear have boomed.
Is remote work good for productivity?
- So far, there is scant clarity—and widespread contradiction—about the productivity impact. Some 41 percent of employees who responded to a McKinsey consumer survey in May said they were more productive working remotely than in the office. As employees have gained experience working remotely during the pandemic, their confidence in their productivity has grown, with the number of people saying they worked more productively increasing by 45 percent from April to May.
- With nine months of experience under their belts, more employers are seeing somewhat better productivity from their remote workers. Interviews with chief executives about remote work elicited a mixed range of opinions. Some express confidence that remote work can continue, while others say they see few positives to remote work.
(Disclaimer : This blog is for information purposes only)
