The Risks and Benefits of Working Remotely
In this article we look at the incentives for remote working, and we identify the risks for both the worker and the organisation.
The shift towards remote working has been slow and steady until the Covid-19 pandemic. Organisations around the world have been forced to shift their business models to manage workers isolating in their own homes. Whilst some companies have jumped on the Covid-19 crisis as an opportunity to pivot away from the traditional face-to-face model. The forced move towards remote work is in all essence a global experiment and one that will determine what a workplace will look like in the coming years.
we look at the incentives of remote working and identify the risks for both the worker and the organisation
The move towards remote working
In Alvin Toffler’s 1980 book The Third Wave he prepared us for the impending computer and telecommunications revolution of the 1990’s and 2000’s. This “information age” brought many new implications and work practices including the possibility of carrying out work duties away from the physical business premises through technology. The prospect of flexible working via virtual means has been on the cards for over 20 years but recent events have made it an inevitability.
In May 2020 Twitter announced that their Ireland-based employees were “permitted to work from home forever if they wished to do so”. The San Francisco-based company said it was among the first to move to telework in March 2020 as a result of the Covid-19 crisis and will continue this policy indefinitely as a migration towards a “distributed workforce”. In the same month social media giant Facebook announced that it expects half of all its 48,000 employees to work remotely over next five to 10 years. Granted both are forward-leaning tech companies, however, these moves demonstrate a real appetite for remote working from a business perspective. We can assume that both Twitter and Facebook have been productive running their operations using the digital platforms currently available.
Drivers and incentives
Before the Covid-19 pandemic the three main drivers behind remote working were:
- the development of digital technologies
- the attractive economic savings
- a need to stay lean and flexible in uncertain times
Digital technology: Developments in computers and telecommunications have created capabilities in “information” which allow us to work virtually. We know these modern digital technologies as smart devices, computers, digital cameras, and digital printers. These digital devices are supported by software platforms which allow workers to virtually interact with colleagues and clients. These software platforms include Microsoft tools, Google tools, Skype, Slack, Smartsheet, and iCloud amongst others. The roll-out of 5G connectivity (high speed internet) is viewed by many experts as the final step in ensuring reliable and efficient remote working. However, technology is the enabler and not the sole reason for the shift towards remote working.
Economic savings: The economic savings for the organisation are significant. Virtual companies can make huge savings relating to maintenance of large office spaces, provision of work equipment, and travel reimbursement for employees. It has been estimated that a single company in the US can save over $11,000 per annum for each remote worker who “telecommutes” 50% of the time. And according to Flexjobs, an online job service that specialises in flexible jobs, a remote worker typically save about $4,000 a year by working from home for 100% of the time.
Covid-19 has been a sharp reminder of the need for flexibility in times of uncertainty and crisis
Flexibility and agility: Before the need for social distancing rapid technological advances were forcing companies to react quickly to regular shifts and changes within their markets. Competitors have been changing the landscape of their respective markets by utilising emerging technologies to change work trends. This also meant attracting new and better personnel by offering more favourable work conditions such as flexible working hours and remote working options. Virtual work removed geographical obstacles which attracted the best applicants from around the globe, and teleworking capabilities eliminated associated immigration issues. In short, both the organisation and the modern worker have a requirement for flexibility working. And Covid-19 has been a sharp reminder of the need for flexibility in times of uncertainty and crisis.
In the next section we breakdown the realities of remote working for the organisation and for the workforce.
Benefits of remote working
The workforce
- Higher quality of life due to lowered commute time and increased social time
- Greater autonomy in terms of work location, work time, and work environment
- Lower exposure to interpersonal risks e.g. office politics and irate clients
- Lowered costs associated with travel, childcare, food, and clothing
- Greater career satisfaction due to greater choice of jobs and more work opportunities
The organisation
- Economic savings and efficiencies associated with provision of office space, equipment, and travel
- Ability to respond to uncertainty and crisis
- Access to a wide and diverse workforce outside the normal geographical range
- Increased productivity with an emphasis on output and results
- Lower employee salaries and costs
- Greater employee retention due to flexible working opportunities
Risks of remote working
The workforce
- Uncertainty and lower pay due to greater competition for jobs i.e. globalised workforce
- Psychosocial risks associated with lack of workday structure, poor work life balance, and social isolation
- Psychosocial risks associated with lack of technical support and improper work equipment
- Ergonomic risks associated with improper equipment, workstation setup and building suitability
- Personal risks associated with lone working, substance abuse, and domestic abuse
- Physical risks including manual handling, electricity, housekeeping, lighting, and indoor climate
- Performance is heavily weighted towards those with good communication and IT skills
- Hygiene risks associated with “hot desking” and sharing of work equipment amongst staff
The organisation
- Loss of productivity due to lack of supervision, employee visibility, and distraction
- Diminishing company culture due to lack of face time and personal interaction
- Challenges managing the safety and wellbeing of a workforce working remotely
- Security risks associated with phishing, insecure devices, sharing of work equipment, and unsecured networks
- Poor staff retention due to greater competing job opportunities
- High reliance on IT platforms and cloud infrastructure
Comment
Through Covid-19 the workforce has become part of an unplanned experiment on remote working
The effects of the Covid-19 crisis have brought remote working into sharp focus. It is clear that the benefits are weighted towards the organisation. And the business world is watching forced isolation and virtual working very closely. Through Covid-19 the workforce has become part of an unplanned experiment.
To be successful remote working needs to be embraced by everyone in the organisation, but it does not need to apply to everyone in the organisation. Nor will it apply to every industry. It may compliment traditional ways of working on an “as-needed” basis. Occupations in healthcare and childcare for example will always require a high level of face-to-face engagement.
We often picture working-from-home as the ideal scenario where work life balance has finally been achieved. But working from home may not be a suitable option for every company and every worker. As highlighted, working virtually is a double-edged sword and requires careful consideration, planning, and resources.
There are those who will struggle psychologically with social isolation, lack of day-to-day support, and the unstructured aspects of managing their own work day. As a result organisations must explore job design aspects such as participative design, usability of platform technologies, and addressing each workers social and domestic needs. Making virtual systems fit to the individual and not vice-versa will be a key aspect of transitioning into the remote working era. We know that an unhappy workforce is an unproductive workforce, so a human-centred approach must come to the fore. As the wellbeing of the worker and the wellbeing of the organisation have never been as closely linked.
