Remote staff aren’t “children”, says Spotify’s HR Chief, Katarina Berg.
Berg, amongst others, is a staunch advocate for remote work. She believes trust and autonomy are crucial in today’s workforce. “You can’t spend a lot of time hiring grownups and then treat them like children,” Berg states.
Her philosophy aligns with the idea that work is not a place you come to; it’s something you do. Spotify continues to lean into flexible work models, emphasising the benefits of trust and choice for employee satisfaction and productivity.
However, not everyone in senior management shares this perspective.
Companies such as Amazon and smartphone maker Nothing are enforcing stricter return-to-office mandates, citing collaboration and innovation as key drivers.
This tug-of-war between flexibility and control underscores a broader question: what does the modern workplace need to thrive?
Unravelling the conflict in opinion
The working world has thoroughly analysed data, reviewed employee surveys, and reached a clear consensus: remote working structures are not only viable but also highly beneficial.
Among the most compelling evidence is the success of hybrid working models, which balance the flexibility of remote work with the benefits of in-person collaboration. Some of the main reasons for this are:
Improved productivity: Research by IWG shows that 78% of hybrid workers believed they were often more focused and less interrupted at home – leading to greater productivity. However, some studies show that fully remote work can be harmful to pure productivity.
Higher retention rates: Flexibility is a top priority for many workers, whether it helps with child care, accessibility concerns, or avoids the dreaded commute. Well thought out WFH policies are a powerful retention tool. Research from Payscale shows that employees who can work remotely are 22% less likely to quit than fully remote workers and 32% less likely to quit compared to fully on-site workers.
Cost savings: Both employers and employees save money - on office space, commuting, and more. These savings can be especially pivotal in times of economic turmoil, the likes of which we’ve experienced in the past few years.
What are the perceived negatives?
Despite the above studies, there remains an uncomfortable tension around the idea of flexible working.
Much of this discomfort exists between the employee and c-suite management, otherwise know as the rule makers and the rule abiders.
A KPMG study of more than 1,300 global CEOs found that 64% predict that everybody will be back to working from the office by 2026. Many believe this centres around the idea of a greater need for "perceived" control. But are there tangible benefits to in-office work?
Collaboration and creativity: Spontaneous conversations and brainstorming sessions often happen in person.
Stronger culture: Building relationships and maintaining company culture can be easier when teams work side by side. Many business leaders fear that without a return to the office, their company's unique culture could erode. In a 2022 Korn Ferry survey, two thirds of 15,000 global executives agreed that corporate culture constitutes more than 30% of their company's market value.
Managerial oversight: Leaders may feel more comfortable monitoring performance and ensuring alignment when everyone is in the same place.
The above highlights that, yes, there are positives to working in an office, but this doesn't insinuate that its benefits are exclusive to full-time office work. Many believe, and the evidence shows, that the above can be achieved through a hybrid model.
Can remote work benefits be tested?
What better way to prove the pros and cons of remote working than by applying A/B testing to a working environment? That's what one company did.
Trip.com, a global travel company, ran a six-month experiment to see how hybrid work stacks up against full-time office work. They split 1,600 employees into two groups: one group came to the office five days a week, while the other worked in the office three days a week.
The results were eye-opening.
Productivity, performance, and promotions stayed the same across both groups, but hybrid workers were happier and 35% less likely to quit. This was especially the case for women and those with long commutes. This saved the company millions in turnover costs.
What made it work? Clear in-office schedules, solid performance reviews, and full support from leadership. Trip.com's experiment proves that hybrid work wasn't just good for employees but also for their business.
But does this work with every business?
Does remote working suit some workers more than others?
Obviously, the effectiveness of remote work has nuances. Not every role or sector is capable of utilising remote work because of its practicalities.
In August 2024, Statistics reviewed data about which role types were most likely to work either hybrid, remotely, or travel to work.
Research shows that 'managers, directors & senior officials' were the largest worker pool to use both hybrid and remote ways of working (almost 65%). On the other hand, 'Elementary, Caring, leisure, and other service occupations' showed the lowest uptake of home-work.
[Data sourced from Statistics]
Could this be argued as a case of hypocrisy? The irony of flexible working policy is that it's often senior employees who take the most advantage of it.
Professional occupations emerged as the second-largest group adopting remote work, largely due to the nature of their roles, which can often be completed via specialised tools, software, or platforms.
This data not only highlights the adaptability of professional roles to a remote environment but also underscores the importance of equipping employees with the necessary tools and infrastructure to maintain productivity outside traditional office settings.
"The debate over remote versus in-office work is far from settled. For now, organisations must balance trust, performance, and culture with traditional notions of control."
What sectors are best suited to remote work?
Of course, we expect to see obvious flexible working patterns in different sectors, too.
As mentioned above, professional roles, such as engineers, architects, analysts or designers, are largely able to take advantage of flexible working arrangements thanks to advancements in cloud computing, remote desktop solutions, and other collaborative tools that allow seamless access to these resources from home.
So, any sector that employs lots of these role types will find it easier to implement remote working arrangements. Below, we can see that the Information and Communication sector is excelling in this way - with almost 80% of companies likely to adopt flexible working models.
[Data sourced from Statistics]
However, many jobs do not have this flexibility. Construction, transportation, and manufacturing are a few examples of this (we can see this from the graph above).
Roles that require less working equipment, often just a laptop, are obviously easier to replicate in locations other than the office. These are just practicalities.
But even when jobs can be completed in additional spaces like the home, coworking offices, and cafes, there can still be backlash and restrictions to flexible working policies.
So what do you need to succeed in a hybrid system?
Some companies may choose not to implement work-from-home policies because they conflict with an organisation’s culture.
Others might choose not to simply because they lack the tools needed to optimise a flexible working system. Key considerations such as adopting efficient remote technologies, ensuring career advancement opportunities, and fostering a cohesive culture are essential to making such systems work.
So, what can you do to improve remote working practices?
Rigorous Performance Management Systems
As demonstrated by Trip.com’s A/B testing, remote work can be most effective when companies monitor productivity using clear metrics. These might include editing a specific number of articles, resolving support tickets, or fixing bugs. Such metrics not only alleviate pressure on employees to perform productivity through superficial actions like instant replies but also provide managers with tangible indicators of success. Additionally, these metrics can inform performance reviews, merit-based promotions, and salary adjustments, creating a more transparent workplace.
Culture and Values
Flexible working isn’t just about logistics; it reflects a company’s culture and values. Committing to hybrid or remote models requires recognising the type of organisation you want to be. Investing in these practices demonstrates trust in employees and a forward-thinking approach to the workplace.
Leadership Buy-In
Remote working thrives only when leaders and executives genuinely believe in its value. Without this belief, internal conflicts may arise, leading to passive-aggressive or dismissive behaviour toward remote employees. Moreover, a lack of leadership support often results in insufficient investments in technology and promotion biases favouring in-office workers.
As Spotify’s Katarina Berg states, success in the modern workforce begins with treating employees like adults - whether they’re at their desks or on their couches.
The debate over remote versus in-office work is far from settled. For now, organisations must balance trust, performance, and culture with traditional notions of control.