COVID-19 brought about a significant change in the way companies operate, driving the mass adoption of teleworking. Now, when the WHO has already declared the end of the pandemic, it is essential that we stop analyzing the advantages and disadvantages of teleworking for companies. In this article, we’ll take a look at those pros and cons, backed by proven data and studies. We will also explain in which jobs, functions or industries it is more advisable and in which it is less suitable.

Advantages of Teleworking

Time puts things in their place and, probably, not all the advantages of the beginning have been maintained. However, some of them remain:

  • Increased productivity: Although it cannot be extrapolated to all companies, according to a study carried out by Stanford, teleworking increases productivity by 13% (Bloom et al., 2015). By avoiding the commute and distractions of the office, hardworking individuals can focus more on their tasks, which leads to greater efficiency and positive results for the company.
  • Cost reduction: By enabling telecommuting, companies can significantly reduce the expenses associated with maintaining a physical office space. These savings are reflected in decreased rent, utilities, and overhead (Gajendran & Harrison, 2007). In addition, the company can save on travel costs and relocation of personnel.
  • Increased talent retention: Telecommuting provides flexibility for employees, which can help retain those who value work-life balance. According to an Owl Labs report, 80% of employees consider telecommuting to be an important benefit for job retention (Owl Labs, 2021). By offering this option, companies can attract and retain highly-skilled professionals.
  • Expansion of global talent: Telecommuting removes geographic barriers, allowing companies to access a broader talent pool. They can hire qualified professionals regardless of their geographical location, which provides the opportunity to form diverse and multidisciplinary teams (Arvanitis & Lorenz, 2021). This diversity can drive innovation and creativity within the organization.
  • Greater well-being and job satisfaction: Several studies have shown that teleworking improves the well-being and job satisfaction of employees (Golden, 2021). By avoiding the stress of commuting and providing greater autonomy over the work environment, employees can experience a better work-life balance, which translates into greater motivation and engagement.

Disadvantages of Teleworking for Companies

As we said above, not all are advantages, and some of the disadvantages have become more apparent as the pandemic has lost steam.

  • Less cohesion and collaboration: Telecommuting can make it difficult to build strong personal relationships between employees and affect team collaboration. Not sharing a physical space can decrease spontaneous interaction and informal communication, which can hinder creativity and idea generation (Johnson et al., 2021).
  • Management and Supervision Issues: For some roles and functions, performance monitoring and monitoring can be more challenging in the telework environment. Directors and managers may face difficulties in assessing and maintaining the productivity of remote workers, which requires the implementation of effective monitoring systems and tools.
  • Impact on organizational culture: Teleworking can affect the cultural cohesion of a company by making it difficult to transmit values and organizational identity. It is important that companies adapt their management practices and clearly communicate shared values and objectives to maintain a strong organizational culture (Chaturvedi & Agrawal, 2020).
  • Possible lack of internal equity: Many companies have functions that cannot be provided remotely and others that can. As a general rule, the fact that headquarters can telework and factories or territorial networks does not generate internal inequities and the perception of ‘privilege’ for people in central services.

Recommendations for Teleworking by Job Positions, Functions and Industries

  • Most suitable positions for telecommuting: Telecommuting is especially suitable for roles that require a high degree of independence and flexibility, such as programmers, graphic designers, copywriters, data analysts and consultants. These positions are often able to perform their work efficiently using online communication and collaboration technologies.
  • Roles that require face-to-face interaction: Some roles, such as intensive teamwork, complex project management, and sales, can benefit from face-to-face interaction. These activities often involve fluid communication and joint decision-making, which encourages collaboration in a physical setting.
  • Industries with clear advantages: Telecommuting is especially beneficial in knowledge-based industries such as information technology, digital marketing, research and development, and consulting. These industries are focused on intellectual tasks, and access to global talent can provide a competitive advantage.
  • Industries with additional challenges: In industries such as manufacturing, logistics, and retail, telecommuting may be less suitable due to the operational and hands-on nature of the roles. These industries often require a physical presence to carry out essential tasks, such as production, assembly, and inventory management.

The four golden rules for effective teleworking.

Teleworking has proven to be a successful strategy for many companies in the post-pandemic scenario. However, it is important to be aware of potential downsides, such as decreased collaboration and management challenges, and tailor practices and policies based on the specific needs of each business and function. By strategically and consciously embracing telecommuting, companies can maximize their benefits and minimize potential downsides. Some key recommendations include:

  1. Establish clear policies and procedures: It is essential to establish clear guidelines on expectations, schedules, communication and delivery of results for employees who work remotely. These policies must be flexible and adapt to individual needs and the characteristics of each position.
  2. Foster effective communication and collaboration: Companies should invest in online communication and collaboration tools to facilitate interaction and teamwork. These tools can include video conferencing platforms, real-time chat, and project management systems.
  3. Provide adequate technological support: It is essential to ensure that employees have access to the necessary tools and technologies to perform their work efficiently. This includes computer equipment, up-to-date software, and secure access to company systems and data.
  4. Promote employee health and well-being: As telecommuting becomes more common, it is essential to prioritize the physical and mental well-being of employees. Companies can offer wellness programs, flexible hours, regular breaks and encourage work-life balance.

Conclusion.

In summary, teleworking offers a series of significant advantages for companies in the post-pandemic scenario. But it must be applied in moderation (better 2 days a week). Through a strategic approach and proper implementation, organizations can reap these benefits, such as increased productivity, reduced costs, and improved employee well-being. However, it is important to consider potential downsides, such as decreased collaboration and management challenges, and adapt practices and policies accordingly.

Ultimately, telecommuting is not a one-size-fits-all solution, and its suitability varies across jobs, functions, and industries. Companies must carefully assess the specific needs of their organization and find the right balance between remote work and a physical presence in the office. By doing so, they can take full advantage of the benefits of telecommuting and build a more flexible, efficient and fulfilling work environment for all.

Ricardo Alfaro

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References:

Arvanitis, S., & Lorenz, F. (2021). The impact of telework on innovation in response to the COVID-19 pandemic. Research Policy, 50(9), 104218.

Bloom, N., Liang, J., Roberts, J., & Ying, Z. J. (2015). Does working from home work? Evidence from a Chinese experiment. The Quarterly Journal of Economics, 130(1), 165-218.

Chaturvedi, S., & Agrawal, V. (2020). Impact of Covid-19 on the world of work. Indian Journal of Industrial Relations, 55(4), 643-651.

Gajendran, R. S., & Harrison, D. A. (2007). The good, the bad, and the unknown about telecommuting: Meta-analysis of psychological mediators and individual consequences. Journal of Applied Psychology, 92(6), 1524-1541.

Golden, T. D. (2021). Work from home after the COVID-19 outbreak. WorldatWork Journal, 30(2), 6-17.

Johnson, S. K., LeBreton, J. M., & Zhang, Z. (2021). Advantages and disadvantages of telecommuting for individual employees: A meta-analysis. Journal of Applied Psychology, 106(4), 442-477.

Owl Labs. (2021). State of remote work 2021. Retrieved from https://www.owllabs.com/state-of-remote-work/2021