Remote Work Just Works

Allowing workers to skip the commute and work in the comfort of their own homes leads to greater productivity across the board.

Photo by Windows on Unsplash

If there is only one good thing to arise from the lunacy that was the COVID lockdowns, it was the revelation that remote work is not only good for employees but can benefit society as a whole.

As our economies become more advanced with increasing reliance on computers and less on physical presence, the need for employees to appear in an office becomes more of an artefact of an outdated time. Technology experts like developers, data analysts and IT support professionals have made it clear that they want remote work, even as many companies try to force their staff back into the office.

Many studies have shown that remote work does not erode productivity. Rather, it seems that allowing workers to skip the commute, and work in the comfort of their own homes, actually leads to greater productivity.

A Stanford University experiment found that the overall performance of 16,000 call-centre employees who worked from home improved by 13%, as they were able to work more minutes per shift and handled more calls per minute. The US Government Accountability Office (GAO) reported an increase of 12% in positive measurable metrics, as well as improved talent retention and reduced overheads.

A 2017 study showed that employers offering remote options saw 25% lower employee turnover. Surveys from FlexJobs indicate that 81% of workers would be more loyal if flexible work options were available.

Skipping out on the commute saved US employees an average of 72 minutes per day. South African workers save possibly even more time, as the average South African spends between 30 – 120 minutes in traffic per day. This commute erodes precious minutes that could be used both for work and recreation.

It should be clear why remote work just works. There are fewer distractions, more time, less waste, greater autonomy, and a freedom to tackle tasks as the individual sees fit. This autonomy allows employees to become the best that they can be.

On top of benefits to the employee and their productivity, the employer also saves money by not needing to provide a desk, lunches, equipment and any physical infrastructure to look after employees besides providing pay and possibly a laptop.

Remote work also has many positive effects on society at large. Allowing people to work from anywhere means they are no longer constrained by the need to live in expensive urban centres. They can move to the cheaper peripheries of cities or even move into small towns and rural areas. Their only limitation is internet access.

San Francisco became one of the most expensive places in the United States to live because anyone wanting to enter the tech industry had to reside there. But now, developers and tech industry workers can work anywhere in the world while receiving a decent salary.

This inevitably allows people to have greater freedom as to where they live and spreads out property purchases and rentals throughout the country. The lowering of demand for property leads to a stabilisation of property prices and rent. This can also serve to uplift small towns and rural areas. As more people move to these areas, or the current residents acquire remote jobs, more money flows into these previously disadvantaged regions.

Less commute time also means less wear and tear on public infrastructure and less air pollution. Instead of worrying about increased public transport, this removes the need for it altogether. It also frees up space on the road for people who have to be physically present for work such as nurses and the police.

While some people fear that remote work leads to social isolation, it may actually encourage the opposite. Being able to work remotely gives workers more time to spend with their families and social groups. Many parents are able to raise their children without having to worry about childcare. And being able to move to cheaper areas allows workers to own a home suitable for a family.

Why the reluctance?

Why then, despite all the evidence that remote work is superior, do so many companies insist on dragging their employees back into the office?

There isn’t some counterintuitive, rational answer. There is no good reason. The fact of the matter is that many offices insist on a physical presence in their office because they are obsessed with the idea of the status quo of physical offices. They think this is the way things have to be. Or, very likely, they watched The Office and are dreaming of emulating it.

Supervisors and managers reportedly also suffer from the insecurity of not trusting that the work is getting done unless they see it getting done - an irrational insecurity in this day and age when we have so many work monitoring solutions.

Some offices also fear the destruction of their company culture. But, so what? The point of a company isn’t to have pizza parties or a pool table. It’s to generate a profit. So many workers are pressured into engaging with a company beyond their work duties, eroding their productivity and their mental health. Culture shouldn’t be forced. And a company culture should merely be doing a good job for good pay. That’s it.

But, most of all, the reason to force workers back into the office may be real estate commitments. Many companies have long-term leases or even own their offices. They feel that it is simply a waste of money to not have their offices full of disgruntled workers who would be performing better at home.

How do we encourage remote work?

So, how do we encourage remote work? It is clear that remote work, where it is possible, is superior in many cases to working in an office. But many companies need to be convinced to break with tradition and allow the change.

First, government can provide the simplest of all incentives. A tax break. Employers who employ remote workers should be able to pay reduced UIF contributions and Skill Development Levy. Perhaps, even reduce the employee side of PAYE.

This should not be necessary however. The data shows that remote work is good for companies. The fundamental problem is real estate commitments.

To solve this, the government should allow office space to be rezoned. Allow them to be redeveloped into commercial retail spaces. Or, even better, residential spaces. This will further contribute to solving the housing crisis.

Eliminating restrictive zoning laws also helps solve the commercial concentration problem, as it allows businesses to spring up closer to residential areas, further reducing commute times.

Government should also cut red tape for internet service providers (ISPs). Allow ISP and fibre providers increased freedom to provide access throughout the country. Finalising a deal with Starlink and allowing access to other forms of internet access will also enable more people from more areas to get remote jobs.

Finally, not all remote work opportunities need to originate in South Africa. Lightening restrictions on receiving foreign money transfers and making it simpler for South Africans to get foreign remote work will help build virtual remittances. This is money that benefits South Africans and is spent locally.

Remote work isn’t just a workplace trend. It’s a transformative opportunity for South Africa. By embracing it, we can boost productivity, cut costs, reduce traffic congestion, revitalise rural areas, and empower millions to build better lives. It’s time to move beyond outdated norms and build an economy fit for the digital age.

Nicholas Woode-Smith is the Managing Editor of the Rational Standard. He is an author, economic historian and a senior associate at the Free Market Foundation. He writes in his personal capacity.