'The future will see a further shift to remote work, with much potential for happier employees, more productive firms, more affordable homes, and less pollution'
Barrero is an Assistant Professor of Finance at Instituto Tecnológico Autónomo de México ; Bloom is the William Eberle Professor of Economics at Stanford University; Davis
Working from home accounted for only 5% of all workdays before the pandemic. It was often disparaged as “shirking from home” or “working remotely, remotely working.” But now it’s common to find employees up and down the job ladder—from rookie hires to the CEO—working from home at least part of the week. As of December 2022, almostEmployees are perhaps the biggest winners. According to our monthly, employees value the ability to work from home 2-3 days a week at 8% of pay, on average.
Firms can also be winners in the work-from-home revolution. Offering remote work options has become an important tool in recruiting and retaining staff, and in moderating wage-growth pressures. In addition, well designed remote-work practices raise productivity. When employees all come into the office on the same days to work together, for example Tuesday to Thursday, and stay home on Monday and Friday to focus on deep work, research suggests productivity rises by about 3% to 5%.
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