New Delhi: Although work-from-home provides various benefits to both employees and employers, there are also some challenges, revealed a report from the Confederation of Indian Industry (CII) and the Faculty of Management Studies (FMS), University of Delhi.
This survey is based on the feedback received from 115 respondents representing diverse sectors including agriculture and food processing, consulting and professional services, defence sector, education, IT, pharma and energy amongst others.
The findings highlight important considerations for the future of remote work. While remote work offers short-term benefits to both employers and employees, it may lead to long-term drawbacks, particularly in terms of social, emotional, and human capital. Effective teamwork and problem-solving are central to organisational success, and without a strong culture, organisations may struggle with sustained learning and innovation.
In the study, nearly one-third of respondents opted for remote work before the onset of Covid19 pandemic, while two-thirds continued to use remote or hybrid work after the pandemic.
Pros and Cons
On the positive side, remote work led to significant cost savings, including reduced commuting time and costs for employees as well as the ability to live in more affordable areas. This has allowed for some adjustments in compensation structures. Organisations save big in office rental costs, expenses in client meetings, and internal collaboration. Employees report lower commuting stress, higher energy levels, and the flexibility to manage work and other schedules, which is specifically beneficial for parents and caregivers. Productivity has also increased moderately.
However, remote work presents challenges as employees struggle with maintaining self-discipline, lack dedicated workspaces, and have difficulty separating work from personal life, leading to increased stress. For organisations, communication has become less effective, and remote work can hinder teamwork and organisational culture. Traditional supervision methods, like attendance monitoring, have become less effective, and there is a greater reliance on performance-based monitoring and trust to ensure employee productivity.
Way forward
This study also examines the potential impact of hybrid work on the broader environment. As global warming and environmental damage are growing concerns, remote work may help reduce carbon footprints and support the achievement of ESG goals. Hiring employees from various locations can also contribute to more balanced regional development and reduce the pressure on metropolitan areas.
"Our research indicates that organisations are exploring hybrid work models, where employees are required to come into the office for limited periods each week. The goal is to create work practices that effectively combine the benefits of in-person collaboration with those of remote work," it noted.
The research also suggests that organisations are experimenting with hybrid work practices, with employees expected to come to the office for a limited period of the week. The aim is to find work practices whereby the advantages of face-to-face working can be optimally combined with those conferred by remote working.
"While work from (WFH) home can help an organisation save cost, sustaining it in the long run poses challenges. WFH impacts the social connect between people and can impact building the right culture in the long run. Providing flexibility to meet individual needs is good. But a pure WFH model is something only for exceptional roles," Dr Naushad Forbes, former president of CII said.
Costs and Benefits for Employers
- Moderate savings on office rental expenses.
- Moderate decrease in costs associated with client meetings and interactions.
- Savings from reduced employee commuting and accommodation costs.
- Significant reduction in commuting stress, leading to higher energy levels.
- Remote work leads to less effective communication and negatively affects teamwork.
- It may hinder the development and maintenance of a strong organisational culture
Costs and Benefits for Employees
- Beneficial for parents with young children and caregivers.
- A moderate increase in employee productivity has been noted.
- The challenge of separating work from personal life results in higher stress levels.
- Many employees do not have dedicated, quiet workspaces at home.
- The flexibility in scheduling proves challenging for those who struggle with self-discipline.
