Disruption to the system: COVID-19 as an accelerator
Over the past few decades, advances in internet connectivity, faster and more powerful computers, and the prevalence of smartphones have made remote access to company networks more available. These developments have given rise to a greater desire among a new generation of mobile-savvy employees for greater flexibility and work-life balance that the concept of work anywhere provides. Despite ratcheting employee expectations, most businesses have been slow to adopt a formal work anywhere strategy, raising concerns about managing a remote workforce, maintaining company culture, and addressing the additional risk and compliance burdens. Then COVID-19 hit.
The first U.S. case of COVID-19 was discovered in January 2020. By the end of March, nearly the entire country was subject to stay-at-home orders, and a near global lockdown brought business travel to a halt. Businesses, if they could, scrambled to set up the technology and infrastructure so most of the employees could work from home.
IT departments expanded VPN access, new laptops and extra monitors were ordered, and software was made available so teams could stay in touch and work together despite not sharing the same physical space. The use of virtual meeting apps soared—Microsoft Teams active users jumped 70 percent in April 2020 alone.2
“Work anywhere was initially perceived by our clients to be a better and smarter way for attracting, maintaining, engaging, and obtaining the talent they wanted, but it was somewhat limited in scope,” said Dave Mayes, Principal, KPMG Global Mobility Services. “Then COVID-19 hit, and it accelerated the timeline by a decade or so.”
Despite initial challenges and hiccups—and that most were given no choice in the matter—many employees and employers have found the move to remote work to be a generally positive experience. Consider these statistics:
- Despite not having direct supervision, 69 percent of U.S. workers said their productivity has increased since moving remote. Ninety-one percent said they were satisfied with their employer’s COVID-19 response compared with 72 percent of those still working in person.3
- Seventy-eight percent of current remote workers agreed that working from home has saved them time during their day, whereas only 44 percent agreed that it has made them feel more isolated or lonely.4
Employees also seemed willing to put up with some disadvantages if it meant they could keep working from home.
- Fifty percent said their desire to work remotely wouldn’t change even if they were expected to work longer hours.
- Forty percent said it wouldn’t change with reduced take-home pay or greater taxes.
- Sixty percent indicated it wouldn’t change if their employers put software on their computers to monitor their productivity.5
While generally positive, remote workers have also seen some significant downsides. For instance, 36 percent of workers reported more work-related stress, and 34 percent said their current environment has made it more difficult to collaborate.6 Working parents find themselves wearing multiple hats at all times, making focus on any one role feel nearly impossible. What’s more, U.S. remote workers today on average spent three more hours per day working versus pre-lockdown, increasing concerns of burnout.7
Similar to the findings on employees, studies have uncovered pros and cons from the employers as they reevaluate their work anywhere strategies. A study of a 400-person team at Microsoft found that moving to remote work reduced the number of meetings, but employees worked more past regular business hours.8
Nevertheless, given the generally positive reception by employees, major companies are announcing permanent remote work policies—concluding that remote work is a desirable benefit for potential hires. Consider that more than half of current remote workers report that they are more likely to apply for jobs that include the flexibility of remote work as an option.9
“Forward-looking companies realize that this could be a differentiator for them,” said Jamie Seymour, partner, KPMG Global Mobility Services. “If they get this right, it’s going to really reset the talent agenda and allow them to attract a different pool of talent than they have been able to in the past.”
2 The Verge, “Microsoft Teams jumps 70 percent to 75 million daily active users,” Tom Warren, April 29, 2020
3 KPMG Survey, American Worker Survey, Summer 2020
4 Morning Consult, “How the Pandemic Has Altered Expectations of Remote Work,” Peyton Shelburne, July 1, 2020
5 KPMG Survey, Remote Working Survey, September 2020
6 KPMG Survey, Remote Working Survey, September 2020
7 Bloomberg News, “Three hours longer, the pandemic workday has obliterated work-life balance,” Michelle Davis and Jeff Green, April 23, 2020
8 New York Times, “Remote Work Isn’t Working? Maybe Your Company Is Doing It Wrong,” Claire Cain Miller, July 31, 2020
9 Morning Consult, “How the Pandemic Has Altered Expectations of Remote Work,” Peyton Shelburne, July 1, 2020