Don't ask if remote work is right or wrong. Ask this instead. | LinkedIn
Access & share the original post on my personal site using this link. I started working remotely in 2006 or so, hacking my own career via freelancing and consulting.
RTO
Work from home if you want but don’t expect a pay rise
Lower wage growth and higher productivity might be why bosses like remote working more than we think
Post | Nick Bloom | LinkedIn
The Financial Times just covered our research highlighting three key points.
1) WFH is associated with higher productivity: $20,000 a year for each extra remote day a week (Figure 5). This is high quality data - CEO/CFO responses on WFH matched up with audited company accounts for sales, employment, capital and materials. Sample of 1,116 firms, robust to industry controls.
2) WFH is associated with lower wage growth: 0.5% lower wage inflation for each remote day (Figure 6). This aligns with Linked-In data showing the supply of remote workers now exceeds demand, so remote wages are gradually drifting downwards.
3) WFH is here to stay: leaders predict flat levels in 2028 vs 2023 (Figure 1). This makes business sense - points (1) and (2) show how WFH is becoming increasingly profitable for firms with higher productivity and lower costs.
Thus, WFH is a win-win-win, benefiting employees, firms and society.
FT piece: https://on.ft.com/3SMzpH4 Research piece: https://Inkd.in/gEACbE7p
Managers say working from home is here to stay
The Covid-19 pandemic led to a dramatic increase in remote work across the world. This column uses new firm-level data from the UK to study expectations about working from home. Managers forecast levels of remote work within their own firms in 2028 that are almost identical to the levels in 2023. But aggregate working from home could still increase as younger firms tend to make more use of remote working, and they are likely to grow more quickly in the future. Matching this survey data to detailed firm accounts data shows that firms with higher levels of working from home have higher productivity and lower wage growth.
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