Generation is only one dimension that correlates with the effectiveness of remote vs. onsite work. For many workers, the setup of the home office is simply inadequate for working effectively. According to a Stanford University survey, only 65 percent of American workers have an Internet connection that is reliably fast enough for video conferencing.19 The remaining 35 percent require another solution—either a corporate office or a tech-enabled third place like a coffee shop or coworking location—to be effective.

The type of home office setup is another key driver of effectiveness working remotely. According to Your Workplace of the Future, a report released in January 2021 by Leesman, this makes all the difference vis-à-vis working in an office: “For those who work from a dedicated office at home, the home provides a better experience than the office” – an issue we will return to later in order to understand why this is the case. However, Leesman also note that “In contrast, those who worked in non-work specific areas at home had a better experience in the office overall.”

Finally, as the pandemic wore on through the latter half of 2020 and into 2021, evidence emerged that perceived improvements in productivity and collaboration eventually either disappeared or reversed under an enforced 100-percent remote working model.21 Corporate executives also began to notice the deleterious effects of constant separation from coworkers, and an increasing number say they will encourage or mandate in-office work when conditions allow.22,23 20

Academic investigation In addition to self-reported productivity during the pandemic, evidence from academic literature suggests that, within certain parameters, remote work can be at least as productive as working in the office. In a landmark study conducted by Stanford University researchers and published by the National Bureau of Economic Research, CTrip, a Chinese travel company, conducted a randomized, controlled study of workers in its Shanghai call center. The results of the nine-month study, fielded in 2010-2011, showed a 13 percent increase in productivity among those who worked from home 4 days per week (with the 5th day being in the office) compared to those who worked all 5 days in the office.

Again, there is more to the story. At the end of the study, workers were allowed to choose whether they wanted to work remotely or in the office. About half of each group chose to switch, and the subsequent increase in productivity across the entire team was 22 percent.24 This indicates the importance of the office to the productivity of a meaningful portion of CTrip’s workforce. Furthermore, some who elected to work in the office may have been motivated a small but significant “promotion penalty” effect discovered by the researchers: Those in the initial group chosen to work from home were less likely to be promoted than their in-office colleagues.