More than three years after the Covid-19 pandemic, a majority of Indian companies continue to offer work-from-home (WFH) options, believing the benefits, such as cost savings and employee flexibility, outweigh the drawbacks, a new study found.
The joint report by the Confederation of Indian Industry (CII) and the Faculty of Management Studies (FMS) titled ‘Work-from-home: Benefits and Costs’ reveals that 68% of companies still maintain WFH policies.
The Shift to Work-from-Home and Its Perks
Remote work was a novelty before Covid-19, with less than one in three companies (30%) in India offering the option.
However, stringent restrictions during the pandemic made almost all companies adopt WFH policies.
The study received responses from 115 companies across diverse sectors, with over half of them employing more than 1,000 people.
Respondents rated their level of agreement on a series of statements using a 5-point Likert scale, where 1 indicated strong disagreement and 5 indicated strong agreement.
The study found moderate agreement on the impact of remote working, with average response scores indicating savings of over 25% in office rentals (3.5), substantial cost reductions in meetings and client interactions (3.6), as well as employee meetings within the organization (3.6).
To a limited extent (3.1), the savings in employee commuting and accommodation costs have allowed companies to adjust employee compensation structures.
Respondents agreed that remote working has significantly reduced commuting stress for employees, leading to greater energy levels (3.9), but they only moderately agreed that this has led to a significant increase in employee productivity (3.4).
Hybrid Work Models: Challenges and Criticisms
While about 5% of companies allow fully remote work, almost half of them expect employees to be present in the office for two-three days a week.
Research led by Stanford economist Nicholas Bloom shows that employees who work from home for two days a week are just as productive and as likely to be promoted as their fully office-based peers.
The study also found that hybrid work had zero effect on workers’ productivity or career advancement and dramatically boosted retention rates.
Despite the benefits, remote work has faced criticism from high-profile business leaders like Elon Musk and Jamie Dimon, who argue that the costs of remote work outweigh any benefits.
Critics say that employee training and mentoring, innovation, and company culture suffer when workers are not on-site five days a week.
However, Bloom argues that critics often confuse hybrid for fully remote work, and most research into working from home has focused on workers who aren’t required to come into an office.
The study highlights the continued relevance of WFH policies in the post-pandemic world, with a majority of companies recognizing the financial and employee benefits of remote work.
Addressing the skills gap and ensuring effective collaboration and innovation remain key challenges as companies navigate the hybrid work landscape.
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