News: Inside the Great Disconnect: How remote work is costing employers

With COVID restrictions starting to ease across the world, companies are eager to return to their pre-pandemic production levels. But are teams ready to return to pre-pandemic ways of working?

Nearly two in three employees (64%) surveyed by ADP, said they would consider leaving their current company for another if they were forced to go back to office-based work.

A new study by software company OSlash also sheds light on the issue of The Great Disconnect. It surveyed 800 remote workers and 200 business leaders to find out what each side is advocating. The report provides insights that could prove useful to bridge the gap between companies and their workforce.

While employers have started mandating staff to leave their work-from-home (WFH) setups and report back to the office, workers are reportedly unwilling to give up remote work and the various benefits that it supposedly provides them.

The impasse between employers and their workers is causing significant disruptions in workplaces.

The real cost of remote work

One of the biggest concerns for employers is how to keep their staff highly productive if they were to keep working from home. By having them work in the office, business leaders would be able to monitor their employees’ quality of work. It would also discourage workers from taking too many breaks.

The OSlash study suggests that there may be a basis for this concern. Remote workers were found to engage in non-work-related activities when they were supposed to be working. These included streaming music, watching TV, cleaning, and exercising.

Of all the age groups interviewed, Millennial workers were more likely to spend work hours watching adult content.

Meanwhile, Generation X workers were more likely to run errands during work hours.

On the other hand, Gen Z workers tended to juggle between multiple jobs during work hours. In fact, more than seven out of 10 respondents said they had more than one job. These workers would reportedly spend up to 16 hours a week in another job.

Such non-work related activities are costing employers thousands of dollars. For instance, 35% of remote workers spent an average of 104 minutes a week streaming TV when they were supposed to be working. This cost companies as much as US$2,251 per employee, the study said.

Even something as seemingly harmless as doing exercise during work hours is costly for companies. About 38% of respondents spent an average of 76 minutes per week exercising during work hours. That cost their employers $1,651 per employee.

The impact of return-to-office mandates

A large part of why workers are not too keen on going back to the office is because of the freedom that they already have. Remote work allows them to have more control over what they do every day. Of those interviewed:

28% said they would miss exercising if they were to return to the office
28% said they would miss being able to stream music
26% said they would miss spending time with their family

Remote workers also hate having to travel to the office. A quarter of respondents said they would miss not having to commute every day to work.

Moreover, most workers (78%) said they were willing to take a pay cut if they were allowed to do remote work. Of all the age groups, Gen Z workers were the ones most likely to do so.

What can employers do about the Great Disconnect?

The study suggests that people are willing to give up some of their pay just to stay working remotely. However, it does not mean that they would turn down any financial incentives offered to them to go back to the office.

Of those interviewed, nearly half (48%) said they would like to get more money. Many of these workers said they want to get at least $500 as a bonus to return to the office. Some of the respondents were more enticed by other incentives such as having:

Flexible work hours (39%)
Free food (38%)
Four-day workweek (35%)
Hybrid work schedule (30%)

Business leaders seem to have a good understanding of the benefits that office and remote work provide their organisations. For example, while workers appear to be more productive when working in the office, remote workers seem to have higher morale.

However, when forced to choose between in-office and remote workers, more than a third of employers said they would rather give up those working remotely.

Despite this overall sentiment, employers still understand how expensive it is to recruit new talent to their organisation. This is why some prefer giving staff a few incentives to convince them to come back to the office.

Employers, for instance, are willing to compromise with their workers on schedules. Of those interviewed: