Are we more productive working from home or in the office? This is what the experts say (2024)

It's been more than four years since the COVID-19 pandemic first disrupted the way we work, sending millions of employees home to do their jobs remotely.

While many have been filtering back to the office since, most working-from-home arrangements have stuck and many experts believe they're here to stay.

This week, the NSW government provided new guidance instructing government employees to work primarily from the office or for three days a week, but said it was not "mandating a particular pattern of attendance".

Individual agencies will be left to set their own policies and flexible working arrangements will remain, particularly for people with carer responsibilities and external commitments.

There's been a mixed response from those in the sector, with Premier Chris Minns getting a taste of the public reaction after posting the policy details to his social media — some calling it a "backward step" and others saying the changes will make life harder for vulnerable people and working parents.

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So, we spoke to two experts about the impact of working from home and what arrangements are most effective. Here's what they had to say:

How many of us are actually working from home?

The Australian Institute of Health and Welfare said the sustained increase in people working from home suggested there may not be a return to pre-pandemic levels, with 37 per cent of Australians working from home regularly, according to ABS data from 2023.

Managers and professionals are also the most likely to work remotely, with 60 per cent doing so regularly last year.

It said survey results from July 2022 suggested 88 per cent of Australian workers would like to work from home at least partially, and 60 per cent would prefer hybrid work — where employees divide their time between the office and remotely.

Prior to the pandemic, 13 per cent of people reported working from home all or most days, and that doubled to around 26 to 31 per cent from September 2020 to February 2021, according to the Australian Bureau of Statistics.

Does working from home make you less productive?

NSW Premier Chris Minns this week said "overseas studies" showed people were less productive when working from home.

While it's unclear what overseas studies he was referencing, working-from-home habits vary across different countries, industries, and occupations — and they have different impacts.

Are we more productive working from home or in the office? This is what the experts say (1)

John Hopkins is associate professor of management at Swinburne University of Technology and says it's risky to base working arrangement decisions on research in different countries and sectors.

"I think firms need to look at what works best for them, what works best for the type of work they do, what works best for the people that they have," he said.

"I think obviously any benefits that you have for your employees are a benefit for the organisation as well."

Professor Stefan Volk is professor of management at the University of Sydney Business School and argues working entirely remotely is not as efficient as working in the office, but flexibility is still important.

"If there's one good thing that came out of the pandemic, it's the realisation of many employers that providing flexible work arrangements can be beneficial both for the company as well as for the employees, but it has to be a balance between working on-site and flexible work," he said.

Are we more productive working from home or in the office? This is what the experts say (2)

Professor Volk said innovation and collaboration suffer when people are only working remotely, but that doesn't mean they can't be productive at home.

"I think both is required, and also entirely working in the office is not the way to go, because it puts people under a lot of stress in terms of personal life responsibilities," he said.

Professor Volk also went a step further, suggesting employers should also allow their employees to work at times when they feel more productive, instead of a focus on the 9–5 standardised work schedule.

"In letting people work during their high-performance times during the day, we know that significantly improves performance, no matter whether it's in the office or at home."

Is hybrid work here to stay?

Dr Hopkins said a survey by the Swinburne University of Technology in May this year found the number of people working hybrid had risen from 56 per cent in 2022 to more than 72 per cent.

He added there had been a significant drop in the number of people working full-time in the office or full-time remotely.

Are we more productive working from home or in the office? This is what the experts say (3)

"I think that a lot of managers have now realised things aren't going to go back to 2019, they're not going to go back to pre-pandemic time," Dr Hopkins said.

"So rather than focus on getting people back into the office full-time, it tends to be focused on how can we improve in the future and I think most have accepted that hybrid work seems to be the compromise solution."

While he said working from home could lead to periods of isolation, Dr Hopkins said the hybrid arrangement overcame those concerns, giving workers more flexibility and managers some face-to-face time with their employees too.

"It gives them a better work/life balance. It gives them ability to fit non-work activities around their workday and make more of their time," Dr Hopkins said.

Professor Volk said it was important people were still working from the office and connecting with their colleagues face-to-face.

"You need people to actually sit together, face to face, bounce off ideas, connect with each other. There's also a lot of loneliness at work when people work remotely and never see their colleagues," he said.

Should days in the office be mandated?

Many employers have implemented mandatory in-office days, and research by recruiting company Robert Half showed the number of workers required to attend the office five days a week had doubled in the last year.

Dr Hopkins said a mandate forces people to spend hours commuting to fulfil an attendance requirement even if they don't need to be in the office.

Are we more productive working from home or in the office? This is what the experts say (4)

"There's a financial cost, and then they end up in the office on Zoom calls all day — so nobody wants that," Dr Hopkins said.

"I would like to see the requirement to come to the office based more around purpose and a real reason, so that rather than just a number that applies to everybody, having a specific purpose."

Professor Volk argued if you did not mandate certain days for people to be required in the office, you would never get everybody into the office at the same time.

"Having core days is at least predictable for people in terms of when they can be more flexible with their work and when they are expected to be in the office.

"I agree that hybrid work is probably the way to go, but I would also say that mandating certain hours and certain days can also be helpful."

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Are we more productive working from home or in the office? This is what the experts say (2024)

FAQs

Are we more productive working from home or in the office? This is what the experts say? ›

A recent study by the Harvard Business Review found that remote employees are more productive than their on-site workers/ office workers. The reason is that they are less likely to take time off and quit. A separate study highlights that employees who work remotely can save up to $4,500 annually on commuting costs.

Which is more productive, working from home or office? ›

Several studies over the past few years show productivity while working remotely from home is better than working in an office setting. On average, those who work from home spend 10 minutes less a day being unproductive and work one more day a week.

Is it better to work from home or office? ›

In a study by PwC, 67% of employees say they achieve a better balance of their personal and professional lives when working from home. The elimination of commute time gives employees more hours in their day, which can be used for personal activities, relaxation, or spending time with family.

Is it better to work onsite or remotely? ›

Onsite work typically offers better work-life balance by providing a structured routine. There are regular hours and clear physical boundaries between work and home. This allows employees to start disconnecting from work the moment they leave the premises.

How productive are office workers really? ›

Workplace Employee Productivity Statistics

Office workers are only productive for 31% of their workday, despite the average employee being 60% productive.

Why is working from home less productive? ›

It's true that widespread studies based on standard measures of efficiency have found that fully remote employees are 10% to 20% less productive than those working on company premises. Challenges related to communications, coordination and self-motivation may be factors in the decline.

Is working from home more beneficial? ›

Increased Productivity, Engagement and Well-being: Remote work provides the opportunity for greater intrinsic motivation in work and the ability to better manage the competing demands of work and home, leading to less conflict, stress and anxiety.

Why is in office work better? ›

Being an office inherently offers more exposure to what others are working on and can help you improve your skill set. –It's true, the value of the workplace has changed. It's now a space for everything you might not get at home or virtually: collaboration, creativity, productivity, culture, and celebration.

Is work from home good for mental health? ›

Fully remote (40 percent) and hybrid work (38 percent) are associated with an increased likelihood of anxiety and depression symptoms compared to in-person work (35 percent), according to an analysis by the Integrated Benefits Institute (IBI), an Oakland, Calif.

Do people prefer remote or office work? ›

Employees Overwhelmingly Prefer Remote Work

Many employees prefer the flexibility and autonomy that comes with remote work. For these individuals, work-life integration has become a non-negotiable aspect of their job satisfaction and overall well-being. Employees overwhelmingly prefer hybrid work.

What are the disadvantages of working onsite? ›

Some negatives of onsite working include:
  • Expensive office locations Having a furnished space where every employee can work isn't cheap. ...
  • Limits your options By only hiring candidates that can work onsite, you're reducing your talent pool to those who can physically get to your place of work.
Apr 30, 2024

Is remote work better for your health? ›

While we still don't know much about the long-term implications of remote work, researchers agree that working outside of a traditional office setting can negatively impact our brains and our bodies with everything from eye strain to back pain.

What is the 70 percent rule for productivity? ›

The 70 percent rule suggests working at around 70% of my maximum capacity, leaving room for increased demands and unexpected challenges. By reserving this extra capacity, I can handle temporary workload spikes without burning out or compromising my work-life balance.

Do employees who work from home are more productive? ›

A recent study by the Harvard Business Review found that remote employees are more productive than their on-site workers/ office workers. The reason is that they are less likely to take time off and quit.

Are office workers happier? ›

The researchers found that 41% of in-office personnel are experiencing burnout, compared to 26% of remote workers. In addition, 65% of remote workers said they were “extremely satisfied” with their jobs, compared to just 34% of office-based employees.

Does having your own office increase productivity? ›

Private offices include improved productivity and your entire well-being. An overlooked advantage of having private offices is the improvement in your health. Working in a private office creates a protective fizz around you, sheltering you from communal rooms that might be breeding grounds for viruses and diseases.

Are workers more productive at home pros and cons? ›

Here's some of the most common pros and cons of working from home:
  • Pro: More independence.
  • Con: Increased isolation.
  • Pro: No commute.
  • Con: Increased home office costs.
  • Pro: Increased productivity.
  • Con: Risk of overworking.
  • Pro: Increased flexibility.
  • Con: Less face time.
Jul 30, 2024

Does working from home save money? ›

Consider time spent commuting as part of your total workday.

However, by working from home, the average former commuter could spend up to 264 fewer hours annually on a work-related activity, or about 33 fewer eight-hour workdays every year. That's about $8,700 annually based on national salary averages.

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