Bank chief ’s home working warning
Workers’ creativity and productivity are suffering
WORKING from home full time poses a long-term threat to the economy, the Bank of England’s chief economist has warned.
Andy Haldane said the pandemic may have triggered the ‘largest shift in working practices’ in modern times.
Pointing out that he has only ventured in to his office in the City twice in the past six months, he admitted there were advantages to working from home. He said there was evidence many feel happier and more empowered without the daily commute and increased flexibility.
But there was also evidence the shift had made staff less productive, he added, with parents often having to juggle work with childcare and stationed at makeshift desks around the kitchen table.
He also warned the lack of face-toface interaction with colleagues threatens the creativity needed to ‘fuel economic growth’.
Figures from the Office for National Statistics (ONS) show almost a quarter of workers believe their productivity has been negatively affected by home working, compared with 12 per cent who said it has improved.
In a speech, Mr Haldane said the transition to more flexible working strikes a better balance than being tied to the office five days a week.
But he cautioned against full-time home working, arguing it could ultimately make employees less happy, less creative and less productive in the longer term.
In an appeal to firms contemplating closing offices or moving to smaller premises, Mr Haldane said: ‘It is well established creativity fosters innovation and in turn fuels economic growth. That was the story of the Industrial Revolution.
‘It is also well established that exposure to new and different experiences – sounds, smells, environments, ideas, people – is a key source of creative spark.
‘Remote working inhibits our ability to cultivate and grow these working relationships. Social capital has been another casualty of the crisis.’
Offices have been emptying again after the Prime Minister changed government guidance last month to urge staff in England to work at home if they can.
ONS figures show only 60 per cent of adults travelled to work between October 14 and 18, down from 65 per cent from the previous week.
Meanwhile, the proportion working from home rose to 25 per cent – the highest since August.
Tory MP and former Brexit secretary David Davis last night welcomed Mr Haldane’s comments, saying: ‘One of the minor upsides of Covid is it has let businesses rethink the way they work.
‘But they should not jump to the lazy conclusion that staying at home is the right thing to do.’
Joe Fitzsimons, of the Institute of Directors, said: ‘One of the main ways we learn on the job is through impromptu interactions with our colleagues. The rise of remote working clearly raises a big challenge.’
Former Tory party leader Sir Iain Duncan Smith said: ‘For all the talk about missing out on commuting, there is no question working from home has had a detrimental effect on productivity. And without trade from people in offices, many shops and businesses will shut down.’