Working from home

For those who have been observant, it has been apparent since around 2010 that there has been a gradual shift towards working from home.  At MITI Risk, we first noticed this trend in 2011 when companies in the City of London began allowing employees to work from home one day a week, whenever possible.  By 2015, it had become increasingly common for companies to embrace the concept of employees working remotely for two days per week.

One of the primary driving factors behind this shift is the rising cost of office space in urban areas such as the City of London.  Companies, like the Royal Bank of Scotland, have responded to this by intentionally constructing offices with fewer seats than staff.  Instead, employees are encouraged to work from home for a portion of the week, and a desk booking system has been introduced to manage office space efficiently.

The COVID-19 pandemic accelerated the transition to remote work at an unprecedented pace.  Now, in a post-COVID world, many employees either work fully from home or operate under a hybrid system implemented by their companies.  Similarly, organisations are increasingly opting to hire contract staff or engage third-party professionals who work remotely.

While there are significant business benefits associated with this shift to remote or hybrid working arrangements, it is important to acknowledge that there may be increased risks concerning employee well-being that need to be addressed.

Opportunities

Cost Savings: Home working can significantly reduce operational costs for businesses. With employees working remotely, there is a decreased need for office space, utilities, and other expenses associated with maintaining a physical workspace. Businesses can save on rent, office supplies, and maintenance costs, allowing them to allocate resources to other areas of the business. Additionally, reduced commuting can lead to cost savings for both the company and employees in terms of transportation expenses.

Increased Productivity and Flexibility: Home working can enhance productivity and provide greater flexibility for employees. Without the distractions and interruptions commonly found in a traditional office environment, employees often report higher levels of focus and concentration when working from home. This can lead to improved efficiency and output.

Moreover, remote work allows employees to have more control over their schedules, enabling them to balance work and personal responsibilities effectively, which can contribute to higher job satisfaction and overall productivity.

Access to a Wider Talent Pool: Home working opens up opportunities to access a broader talent pool. Geographical limitations are no longer a barrier when hiring, as businesses can recruit employees from anywhere in the UK or even anywhere in the world. This can lead to a more diverse workforce with a range of skills and perspectives, fostering innovation and creativity within the organisation. Additionally, businesses can tap into specialised expertise that may not be available locally, expanding the talent pool and increasing the potential for growth and success.

Risks to staff wellbeing

Blurred Work-Life Boundaries: One of the challenges of working from home is the blurring of boundaries between work and personal life. When the office is just a few steps away, it can be difficult for employees to disconnect and establish a healthy work-life balance. The absence of clear physical separation between work and home environments may lead to longer working hours, difficulty in setting boundaries, and increased risk of burnout. Employees may find it challenging to switch off from work-related tasks and dedicate time to personal activities, potentially impacting their overall well-being.

Communication and Collaboration Limitations: Remote work can pose communication and collaboration challenges, especially when relying heavily on virtual tools and technology. Without face-to-face interactions, there may be a loss of nonverbal cues, making communication less nuanced and potentially leading to misunderstandings. Collaborative tasks that require immediate and seamless teamwork may be hindered by technological limitations or delays in communication. Building rapport and maintaining team cohesion can also be more challenging when interactions are primarily virtual.

Potential for Social Isolation: Working from home can result in social isolation and reduced opportunities for social interactions. Employees may miss out on casual conversations, networking opportunities, and the social connections that naturally occur in a physical office setting. This lack of social interaction can affect morale, teamwork, and employee engagement. Additionally, individuals who thrive on social stimulation may experience feelings of loneliness or isolation, impacting their overall well-being and motivation.