During the height of the COVID-19 pandemic, many companies adopted work-from-home arrangements, leading to widespread belief that this would become the norm moving forward. Numerous studies have shown employee preference for remote work due to its advantages in terms of commuting time, cost savings, and overall convenience. However, as normalcy returned, many companies began mandating a return to office work, resulting in employee resignations.
A recent survey has revealed a direct correlation between company revenue and remote work policies. The survey, led by Boston Consulting Group, indicates that companies with flexible work arrangements experience higher revenue growth compared to those with more rigid policies. While the debate over remote work may continue, the survey’s findings suggest that companies embracing remote work could gain a competitive edge.
According to a Bloomberg report, a three-year analysis led by Boston Consulting Group found that companies embracing remote work experienced four times faster revenue growth than those with stricter office attendance policies.
The survey, analyzing data from 554 public companies, revealed that fully flexible firms, allowing employees to choose their work location, experienced a 21% increase in sales between 2020 and 2022, adjusted for industry performance. Conversely, companies with hybrid or fully onsite work setups recorded only 5% revenue growth during the same period.
The study, conducted by flex-work advisor Scoop Technologies Inc. and Boston Consulting Group, encompassed companies across 20 industries, ranging from technology to insurance. Revenue growth was normalized against average industry growth rates to eliminate any bias from companies operating in high-performing sectors.
Recently, an Amazon employee gained attention for quitting his job rather than returning to office work. The employee also forfeited vested stocks worth $203,000 (Rs 1.6 crore approx). In an article for Business Insider, the former Amazon employee shared his experience and expressed satisfaction with his decision, despite a significant pay cut.
The ex-Amazon employee, based in New York, was instructed to relocate to Seattle from June 1. However, he and his wife had just purchased their “dream property,” and relocating across the country for a job was not a desirable option. He further clarified that his role was initially designed to be remote.