3 Surprising Effects of Remote Work

Remote work has been on the rise since the start of the pandemic.

Today, 35% of workers with jobs that can be completed remotely work from home permanently — that represents an increase of 400% since 2019. 

Among those who work from home (WFH), 71% say that working from home helps them balance their personal life with their work commitments and 56% say that they find it easier to meet deadlines thanks to remote work. 

However, working from home offers more than just improved flexibility and freedom. Workplaces that embrace remote work can strengthen their commitments to diversity and inclusion, reduce the impact on the environment, and attract more talented employees. 

The rise of remote work is changing the macroeconomic landscape, too. Folks around the nation are moving to the suburbs in search of a home office and vacant office spaces in cities are being transformed to better serve the general public. 

Real Estate Markets

The rise of remote work has shaken up the real estate industry and made waves in a number of towns and cities across the nation. High-income buyers are moving to the suburbs in droves and are looking for home offices that can support their professional lives. This is particularly profound in cutting-edge cities like Austin, Texas which saw a 10% increase in smaller towns and suburbs outside of the city following the pandemic. 

Commercial real estate has undergone some tough times in response to remote work. Telework has reduced the demand for office spaces and generated a downturn in major markets. For example, the cost of commercial rentals in San Francisco dropped by 30.8% since 2019. 

Lower commercial property values may have a knock-on effect on property taxes. While every municipality calculates tax rates differently, a general decline in the value of commercial property may coax businesses back into the city in search of high-end office spaces and a better corporate culture. 

Diversity and Inclusion

The flexibility and freedom that comes with remote work aren’t just good news for folks who like to socialize and spend time away from the desk. Offering remote work can improve diversity and inclusion as more people — like caregivers, parents, and people with disabilities — can apply for a position at the company. 

A recent McKinsey report echoes the idea that remote work is good for traditionally marginalized employees. The survey found that:

• Folks with a disability were 11% more likely to prefer remote work over employees without a disability

• LGBQ+ employees are 13% more likely to prefer remote work compared to heterosexual staff (McKinsey chose to record transgender employees separately to avoid conflating sexual orientation with gender identity)

• Nonbinary employees are more likely to enjoy remote work than men or women. 

These statistics shouldn’t come as a surprise to anyone who has worked in corporate culture for any length of time. Many employees choose to hide their real identity at work due to fears of reprisal or exclusion. By working remotely, staff are free to be themselves without having to worry about the opinions of their coworkers. 

Many traditionally marginalized employees say that they’d leave their workplace if their employer stopped offering remote work, too. Black employees were 14% more likely to leave than their White peers if forced to work in the office, and LGBQ+ employees were 24% more likely to leave than heterosexual workers. 

These statistics highlight the importance of remote work. When working from home, traditionally marginalized staff feel psychologically safe and can be themselves without the overbearing pressure to conform to the culture associated with modern workplaces. 

Environmental Protection

Going remote cuts commuting emissions and reduces the amount of energy firms use to maintain their operations. However,  going remote doesn’t guarantee that a business is more eco-friendly. Employees still have to heat, cool, and power their home office. This can increase a company’s net carbon emissions, as running a WFH space may be less energy-efficient than a cubicle-style office. 

Firms that care about the environment can double down on their commitment to combating climate change by going digital. Digitization protects the environment by:

• Reducing waste and paper use

• Mitigating emissions associated with travel

• Increasing the adoption of sustainable energy production

Companies can follow through on their commitments to environmental protection by putting the money they save on office fees towards a good cause. For example, firms that are concerned about their employee's personal emissions while working from home can pay for solar panel installations and offset the carbon emissions associated with their worker’s home offices. 

Businesses that adopt a WFH approach can strengthen their work culture and protect their local ecosystems by hosting community clean-ups and fundraisers. This is a great way to encourage socialization between remote employees and can have a lasting effect on the wildlife surrounding suburban developments. 

Conclusion

Remote work gives employees more flexibility, increases productivity, stimulates creativity, and reduces staff stress. Opting for WFH can also improve diversity and inclusion and help businesses follow through on their environment, social, and governance policies. Remote work has also had a profound effect on the real estate markets, as more employees look for a slower pace of life in suburban areas outside of the city center.