The end of remote working?

In this week's #TheActuarialAgenda, we explore the ongoing debate surrounding working from home versus working in the office. Prior to Covid-19, the concept of remote work was largely reserved for senior executives or the self-employed, but the global pandemic reshaped the way we work and made working from home essential to keep businesses running. As the world gradually returns to a sense of normality, the actuaries I engage with on a daily basis are reluctant to give up the flexibility that remote work offers them. From managing personal responsibilities like the school run to avoiding the morning commute, working from home provided actuaries with a level of flexibility that many senior leaders previously believed was impossible.

However, as things begin to stabilize, an increasing number of senior leaders in the market are urging employees to return to the office. Influential figures such as Elon Musk have even stated that it is "morally wrong" to work from home when service workers have to go in every day. This suggests that working from home may be coming to an end as more employers push for a return to the office. In this edition, we delve into the possible implications this shift may have on our industry.

In a traditional office environment, constant interruptions from colleagues, frequent meetings, and the ever-present presence of bosses can make it challenging to find dedicated time for focused work. It often feels like a "catch as catch can" situation, where moments of deep concentration are interrupted by conversations about last night's sports event. While it can be enjoyable to engage in casual chats, it can also be frustrating when important tasks require completion within strict deadlines.

However, the landscape changes when transitioning to remote work. While it remains essential to prioritize team needs and maintain availability for virtual meetings, remote employees have the freedom to optimize their productivity during their most productive hours. The potential for a quieter work environment, particularly for those fortunate enough to have a distraction-free home office, allows remote workers to concentrate on tasks that require deep focus. Some studies have even suggested that remote work can result in up to 77% higher productivity compared to working in the office.

Remote work also eliminates the limitations of geographic location in the hiring process. Employers are no longer confined to local candidates, but can tap into a global talent pool. As long as candidates have a reliable internet connection and suitable computer setup, employee relocation is no longer a necessity.

Beyond the hiring process, remote work can contribute to lower turnover rates within organizations. Factors such as reduced likelihood of employees seeking new opportunities, the ability to continue employment regardless of geographic location, and the inherent flexibility of remote work all contribute to a more stable and satisfied workforce.

However, challenging economic conditions may have shifted the power back in favor of employers, particularly when it comes to deciding where employees work. The recent wave of uncertainty has prompted leaders to reassess progress made over the past two years, potentially impacting the availability of remote work opportunities. This retreat from flexible work arrangements could have significant implications for employee motivation, diversity, and equity in the long run.

Additionally, as the economy faces a recession, employees may adopt a more conservative approach, preferring stability over job-hopping. The phenomenon of the "great resignation," where individuals frequently change jobs in pursuit of higher salaries, is expected to decrease as economic conditions become more challenging.

While employers may seek a return to the office, they must remain attuned to the needs and desires of their talent. The past three years have demonstrated, albeit out of necessity, that employees can be trusted to work from home. It will be difficult to convince actuaries, in particular, that they need to be in the office five days a week. However, there is still value in attending the office, especially for those early in their careers. Predictably, hybrid working is likely to become a prevalent working arrangement for actuaries at every level for many years to come.

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