“These losses may be intangible in nature, relating to the formation and sustenance of social, emotional, and human capital,” read the research that examined the benefits and costs of work-from-home facilities.
The study by the Faculty of Management Studies (FMS) in collaboration with the Confederation of Indian Industry (CII) indicated that remote working might be less effective for fostering communication and teamwork compared with traditional office-based work practices. Hence, they pose difficulties in creating and sustaining collaborative work cultures, it said.
Hybrid work
Highlighting the possible impact of hybrid work on the macroenvironment, the study said, “Given that global warming and environmental damage are now a key concern of everyone, remote working may help reduce the carbon footprint and promote the achievement of ESG goals.”
Moreover, the ability to hire people from spatially dispersed locations might help in promoting a “more balanced geographical development, in addition to alleviating pressures of various kinds on major metropolitan areas.”
As part of the survey, a questionnaire was designed to seek information on the benefits and costs of work-from-home. It was circulated to CII members and some executive students in FMS during August–September 2024.
In total, 115 responses were received across companies operating in technology and IT (13%), healthcare and pharmaceuticals (10.4%), manufacturing and industrial (10.4%), consulting and professional services (10.4%) and energy (8.7%).
What did the report find
Among the respondents, 30% of companies reported that they moved to home/remote working practices even before the outbreak of the COVID-19 epidemic, while 68% said they have continued this practice even after the end of the pandemic.
Nearly 4.9% of these companies were using fully remote work facilities, while about one-half of them required employees to come to the office for two to three days a week.
Here, the employers were asked a number of questions and requested to express their agreement/disagreement on a five-point Likert scale, wherein “1” indicates strong disagreement and “5” is for strong agreement.
A moderate agreement (mean=3.5) was reported over the statement that remote working has led to substantial savings (more than 25%) in office rental costs. Also, similar was the response on whether remote working has enabled a substantial reduction in costs that are involved in meeting/working with clients (mean = 3.6).
Remote working has enabled a significant reduction in commuting stress for employees leading to greater energy levels (mean = 3.9), they said.
Further, there was moderate agreement (mean = 3.4) on whether remote working has led to a significant increase in employee productivity.
For employees, the respondents strongly agreed (mean = 4.1) that working from home has enabled a significant reduction in commuting time and costs. Also, they agreed upon the statement that it has provided employees the flexibility to live in more affordable areas, thereby reducing the pressure of high rental costs. (mean = 4).
