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July 10, 2024
In the time since we first published this article, McKinsey has continued to explore the topic. Read on for a summary of our latest insights.
“How often do you go into the office?” Today, this question typifies the postpandemic era, just as the phrases “social distancing” and “PCR test” did in 2020. The answer? Probably more than you did during those early days of reentry after the pandemic’s peak, but probably less than you did in 2019.
Our research shows that hybrid work is here to stay. Office attendance remains roughly 30 percent lower than it was before the pandemic. Attendance is especially low in metropolitan areas like London, New York, and San Francisco with large shares of knowledge-economy workers and expensive housing. In these markets, when employees do go into the office, the primary reason is to connect with their teams.
But can remote work be productive work? That depends on whom you ask. Eighty-three percent of employees we surveyed cite the ability to work more efficiently and productively as a primary benefit of working remotely. Our research indicates that even fully remote companies with the right operating models can outperform their in-person peers on organizational health. But many companies see this quite differently: only half of HR leaders say employee productivity is a primary benefit of working remotely.
According to Nicholas Bloom, the William Eberle Professor of Economics at Stanford University and a senior fellow at the Stanford Institute for Economic Policy Research, there is a productivity benefit from what he calls “well-organized hybrid” work environments. In this scenario, everybody comes into the office on the same days, allowing employees to maximize their time together. When you factor in the time saved from not having to commute, as well as the benefit of working in a quieter and more controlled home environment, the result, says Bloom, is a productivity improvement of up to 5 percent. (Of course, some homes are quieter and more controlled than others.)
Who values workplace flexibility the most? The majority of employees say that the opportunity to work remotely is a top company benefit. Both women and men cite less fatigue and burnout as a benefit of hybrid and remote work. But women, particularly those with childcare duties, continue to prize it more. In fact, 38 percent of mothers with young children say that without workplace flexibility they would have had to reduce their work hours or leave their companies.
Many organizations are still trying to find the right balance as they attempt to create true hybrid work models. This may be because they are hesitant to expend the financial and leadership resources necessary to create magnetic and inclusive work environments. But the potential upsides—including real estate savings, a more diverse and inclusive workforce, and improved employee satisfaction and performance—may be well worth the effort.
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When the COVID-19 pandemic shuttered workplaces nationwide, society was plunged into an unplanned experiment in work from home. Nearly two-and-a-half years on, organizations worldwide have created new working norms that acknowledge that flexible work is no longer a temporary pandemic response but an enduring feature of the modern working world.
The third edition of McKinsey’s American Opportunity Survey provides us with data on how flexible work fits into the lives of a representative cross section of workers in the United States. McKinsey worked alongside the market-research firm Ipsos to query 25,000 Americans in spring 2022 (see sidebar, “About the survey”).
The most striking figure to emerge from this research is 58 percent. That’s the number of Americans who reported having the opportunity to work from home at least one day a week.1 Thirty-five percent of respondents report having the option to work from home five days a week. What makes these numbers particularly notable is that respondents work in all kinds of jobs, in every part of the country and sector of the economy, including traditionally labeled “blue collar” jobs that might be expected to demand on-site labor as well as “white collar” professions.
Another of the survey’s revelations: when people have the chance to work flexibly, 87 percent of them take it. This dynamic is widespread across demographics, occupations, and geographies. The flexible working world was born of a frenzied reaction to a sudden crisis but has remained as a desirable job feature for millions. This represents a tectonic shift in where, when, and how Americans want to work and are working.
The following six charts examine the following:
- the number of people offered flexible working arrangements either part- or full-time
- how many days a week employed people are offered and do work from home
- the gender, age, ethnicity, education level, and income of people working or desiring to work flexibly
- which occupations have the greatest number of remote workers and how many days a week they work remotely
- how highly employees rank flexible working arrangements as a reason to seek a new job
- impediments to working effectively for people who work remotely all the time, part of the time, or not at all
Flexible work’s implications for employees and employers—as well as for real estate, transit, and technology, to name a few sectors—are vast and nuanced and demand contemplation.
1. Thirty-five percent of job holders can work from home full-time, and 23 percent can do so part-time
A remarkable 58 percent of employed respondents—which, extrapolated from the representative sample, is equivalent to 92 million people from a cross section of jobs and employment types—report having the option to work from home for all or part of the week. After more than two years of observing remote work and predicting that flexible working would endure after the acute phases of the COVID-19 pandemic, we view these data as a confirmation that there has been a major shift in the working world and in society itself.
We did not ask about flexible work in our American Opportunity Survey in past years, but an array of other studies indicate that flexible working has grown by anywhere from a third to tenfold since 2019.1
Thirty-five percent of respondents say they can work from home full-time. Another 23 percent can work from home from one to four days a week. A mere 13 percent of employed respondents say they could work remotely at least some of the time but opt not to.
Forty-one percent of employed respondents don’t have the choice. This may be because not all work can be done remotely or because employers simply demand on-site work. Given workers’ desire for flexibility, employers may have to explore ways to offer the flexibility employees want to compete for talent effectively.
2. When offered, almost everyone takes the opportunity to work flexibly
The results of the survey showed that not only is flexible work popular, with 80 million Americans engaging in it (when the survey results are extrapolated to the wider population), but many want to work remotely for much of the week when given the choice.
Eighty-seven percent of workers offered at least some remote work embrace the opportunity and spend an average of three days a week working from home. People offered full-time flexible work spent a bit more time working remotely, on average, at 3.3 days a week. Interestingly, 12 percent of respondents whose employers only offer part-time or occasional remote work say that even they worked from home for five days a week. This contradiction appears indicative of a tension between how much flexibility employers offer and what employees demand.
3. Most employees want flexibility, but the averages hide the critical differences
There’s remarkable consistency among people of different genders, ethnicities, ages, and educational and income levels: the vast majority of those who can work from home do so. In fact, they just want more flexibility: although 58 percent of employed respondents say they can work from home at least part of the time, 65 percent of employed respondents say they would be willing to do so all the time.
However, the opportunity is not uniform: there was a large difference in the number of employed men who say they were offered remote-working opportunities (61 percent) and women (52 percent). At every income level, younger workers were more likely than older workers to report having work-from-home opportunities.
People who could but don’t work flexibly tend to be older (19 percent of 55- to 64-year-olds offered remote work didn’t take it, compared with 12 to 13 percent of younger workers) or have lower incomes (17 percent of those earning $25,000 to $74,999 per year who were offered remote work didn’t take it, compared with 10 percent of those earning over $75,000 a year). While some workers may choose to work on-site because they prefer the environment, others may feel compelled to because their home environments are not suitable, because they lack the skills and tools to work remotely productively, or because they believe there is an advantage to being on-site. Employers should be aware that different groups perceive and experience remote work differently and consider how flexible working fits with their diversity, equity, and inclusion strategies.
4. Most industries support some flexibility, but digital innovators demand it
The opportunity to work flexibly differs by industry and role within industries and has implications for companies competing for talent. For example, the vast majority of employed people in computer and mathematical occupations report having remote-work options, and 77 percent report being willing to work fully remotely. Because of rapid digital transformations across industries, even those with lower overall work-from-home patterns may find that the technologists they employ demand it.
A surprisingly broad array of professions offer remote-work arrangements. Half of respondents working in educational instruction and library occupations and 45 percent of healthcare practitioners and workers in technical occupations say they do some remote work, perhaps reflecting the rise of online education and telemedicine. Even food preparation and transportation professionals said they do some work from home.
5. Job seekers highly value having autonomy over where and when they work
The survey asked people if they had hunted for a job recently or were planning to hunt for one. Unsurprisingly, the most common rationale for a job hunt was a desire for greater pay or more hours, followed by a search for better career opportunities. The third-most-popular reason was looking for a flexible working arrangement.
Prior McKinsey research has shown that for those that left the workforce during the early phases of the COVID-19 pandemic, workplace flexibility was a top reason that they accepted new jobs. Employers should be aware that when a candidate is deciding between job offers with similar compensation, the opportunity to work flexibly can become the deciding factor.
6. Employees working flexibly report obstacles to peak performance
The survey asked respondents to identify what made it hard to perform their jobs effectively. Those working in a flexible model were most likely to report multiple obstacles, followed by those working fully remotely, and then by those working in the office. Our research doesn’t illuminate the cause and effect here: it could be that people who face barriers are more likely to spend some time working from home. It could also be that workers who experience both on-site and at-home work are exposed to the challenges of each and the costs of regularly switching contexts.
Some obstacles were reported at much higher rates by specific groups: for example, about 55 percent of 18- to 34-year-olds offered the option to work fully remotely say mental-health issues impacted their ability to perform effectively, though only 17 percent of people aged 55 to 64 said the same. Workers with children at home who were offered full-time remote-work options were far more likely than their peers without children to report that problems with physical health or a hostile work environment had a moderate or major impact on their job.
The results of the American Opportunity Survey reflect sweeping changes in the US workforce, including the equivalent of 92 million workers offered flexible work, 80 million workers engaged in flexible work, and a large number of respondents citing a search for flexible work as a major motivator to find a new job.
Competition for top performers and digital innovators demands that employers understand how much flexibility their talent pool is accustomed to and expects. Employers are wise to invest in technology, adapt policies, and train employees to create workplaces that integrate people working remotely and on-site (without overcompensating by requiring that workers spend too much time in video meetings). The survey results identify obstacles to optimal performance that underscore a need for employers to support workers with issues that interfere with effective work. Companies will want to be thoughtful about which roles can be done partly or fully remotely—and be open to the idea that there could be more of these than is immediately apparent. Employers can define the right metrics and track them to make sure the new flexible model is working.
At a more macro level, a world in which millions of people no longer routinely commute has meaningful implications for the commercial core in big urban centers and for commercial real estate overall. Likewise, such a world implies a different calculus for where Americans will live and what types of homes they will occupy. As technology emerges that eliminates the residual barriers to more distributed and asynchronous work, it could become possible to move more types of jobs overseas, with potentially significant consequences.
In time, the full impact of flexible working will be revealed. Meanwhile, these data give us early insight into how the working world is evolving.
For more on the imperative for flexible work and how organizations can respond, please see McKinsey.com/featured-insights/ Future-of-the-workplace.
