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The Past, Present And Future Of Remote Work

Dec. 29, 2022
The Past, Present And Future Of Remote Work

Alain J. Roy, CEO of ASTA-USA Translation Services, INC.

The work-from-home (WFH) model dates back nearly three decades but was popularized and normalized by the pandemic just a few years ago. Since then, the WFH model has become standard operating procedure for millions of Americans. In 2021, it was found that nearly three times more people were working in remote positions than in 2019. According to a 2021 American Community Survey (ACS) one-year estimate released by the U.S. Census Bureau, 17.9% of Americans adopted the WFH environment between 2019 and 2021.

In the early 1990s, when technology and computing began to connect web users worldwide, companies began to embrace remote work as a viable structure for the first time. The proliferation of cell phones fueled the idea even more as businesspeople and entrepreneurs handled dealings from their homes, golf courses, restaurants and everywhere in between.

When the pandemic spurred government lockdowns in 2020, thousands of companies yet to adopt the model scrambled to explore remote options. Hospitality and client-facing industries immediately felt the impact, while companies already utilizing remote work were much less fazed by this newly mandated reality.

Approximately 5.7% of U.S. employees worked from home five or more days per week prior to the pandemic. Most of these remote employees were distributed throughout industries like media and communications, information technology, and management/consulting. Organizations in these sectors have long since realized the benefits of the WFH model. Eliminating overhead costs, having access to a wider pool of talent, and cutting down on their carbon footprint are some of the most notable gains. When Covid-19 arrived, these companies were looked to for advice in every arena, from productivity and security down to the legalities.

I realize every company’s situation is unique regarding remote work. Many factors can affect a company’s ability to utilize a WFH model successfully, and post-Covid workplace trends impacted some industries more than others.

Employers and employees have opportunities to increase individual and group productivity through the remote model. While there have been some hiccups regarding recruitment and employee retention, many employers find it easier to recruit talent from different parts of the world today than just a few years ago.

Diversifying the workforce with global talent allows companies to onboard new team members who are operational specialists and subject matter experts. Bringing fresh perspectives is substantially easier within a remote model than in an in-person environment. It has proven to be especially beneficial for companies that work with international clients—having individuals dedicated to specific regions of the world helps boost client retention rates and builds trust over time. According to CXC Global, U.S.-based multinational corporations employed over 14 million international employees in 2015, and the numbers have only increased.

In addition to reducing office costs and transportation fees, employers can also minimize relocation costs as there is less of a need to move employees closer to company headquarters. However, it is essential to note that with the impact of Covid-19 lessening more and more with each passing month, relocation demands and costs are expected to rise in the future.

Remote work has proven to be a potent negotiation tool for companies seeking top-tier talent, as remote workers are happier and more productive thanks to the flexibility provided by the WFH structure. Because companies compete to recruit the best talent within their respective industries, many find it increasingly necessary to offer WFH as a perk.

In a recent study by Stanford University, employers who offer remote work to employees are 50% less likely to experience turnover (subscription required). Plus, those employees have an improved performance of 13% compared to their in-person counterparts. This data is backed further by the U.S. Bureau of Labor Statistics, which found that productivity decreased by a staggering 7.5% in Q1 of 2022 as workers returned to in-person work environments. This represents the steepest drop in productivity since 1947.

If you are looking to implement and maintain a robust remote workforce within your organization, there are a few items to consider.

• Reading The Room: Evaluate whether or not your business model could feasibly work in a remote environment. There are many considerations for businesses that rely on in-person interactions, have logistical requirements, or conduct in-person services—for instance, nonprofit organizations or law offices that serve low-income areas. These organizations must consider that access to high-speed internet for video meetings may not be widely available to those that they are serving.

• Fine-Toothed Comb: Once you’ve determined that the WFH model is feasible for your organization, go through every aspect of your business and lay out what needs to change. Operations, client communications, internal communications, HR, payroll, data security, financial transactions and more are all on the table. Attention to detail is essential—gaps caused by the transition can be very costly if not caught early.

• Tech Stack Rehaul: A revamp of software is almost always necessary. Dated communication systems, collaborative workspaces, security protocols and other technologies will likely need upgrades due to the switch. Outdated technology can hinder your business’s overall operational success and security.

• Don’t Avoid—Adopt: Companies that have utilized remote work or hybrid models for decades experienced little to no disturbances when the WFH model became standard in 2020. Those that had not used the model previously ran into far more work-related pandemic complications, like difficulties in operating new equipment or tools, establishing proper security protocols, or struggling more with limited social interaction than those that embraced the switch.

The long-term benefits of WFH far outweigh the obstacles that transitioning presents. We are unlikely to see a significant decrease in remote work in the near future as businesses and employees reap the rewards. Once committed to the WFH structure, don’t “turn back” out of fear of the unknown. Accept this new reality for what it is, and lean in favor of adoption when possible.

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