The Courier-Journal (Louisville)

Will we still work from home in 2024?

Experts say companies will use hybrid models

- Bailey Schulz

Remote work numbers have dwindled over the past few years as employers issue return-to-office mandates. But will that continue in 2024?

Remote work numbers started to slide after the spring of 2020, when more than 60% of days were worked from home, according to data from WFH Research, a scholarly data collection project. By 2023, that number had dropped to about 25% – much lower than its peak but still a five-fold increase from 5% in 2019.

But work-from-home numbers have held steady throughout most of 2023. And according to remote work experts, they’re expected to rebound in the years to come as companies adjust to work-from-home trends.

“Return to office died in ’23,” said Nick Bloom, an economics professor at Stanford University and work-from-home expert. “There’s a tombstone with RTO (Return to Office) on it.”

Here are other remote-work forecasts looking ahead into the new year:

Figuring out the hybrid model

While a number of companies issued return-to-work mandates this year, most are allowing employees to work from home at least part of the week. That makes 2024 the year for employers to figure out the hybrid model.

“We’re never going to go back to a five-days-in-the-office policy,” said Stephan Meier, professor of business at Columbia University. “Some employers are going to force people to come back, but I think over the next year, more and more firms will actually figure out how to manage hybrid well.”

Thirty-eight percent of companies require full-time in-office work, down from 39% one quarter ago and 49% at the start of the year, according to software firm Scoop Technologi­es.

Barbara Larson, an executive professor of management at Northeaste­rn University, said too many companies have been focused on the number of days spent out of the office and not how to manage employees while they’re away. For her, “that’s the clear next step.”

Because work-from-home productivi­ty varies among employees, Larson said companies may start to develop more nuanced remote-work policies that aren’t one-size-fits-all. So while a company may allow one employee to work remotely full-time, another may be required to be in the office three days a week.

“The fact is that good remote work policies leave enough flexibilit­y for there to be some form of performanc­ebased adaptation,” she said. “And that is harder to do than just having a kind of blanket, across-the-board policy.”

Expect remote work numbers to remain flat ... then pick back up

Bloom called remote work numbers in 2023 “pancake flat.” Yes, large companies like Meta and Zoom made headlines by ordering workers back to the office. But Bloom said just as many other companies were quietly reducing office attendance to cut costs.

He expects the share of employees working from home to pick up as companies adjust to remote work, possibly starting as soon as 2025 or 2026. Imagine the chart mapping the data to look something like the Nike swoosh, he said.

“I think the numbers will gradually go up as this becomes more of an accepted norm, as future generation­s grow up with it being so widely available, and as the technology for for doing it gets better,” said Julia Pollak, ZipRecruit­er’s chief economist. Reluctant leaders aging out of the workforce will help, too, she said.

While there’s a finite number of workers who have the option to work from home – one paper estimates that 37% of the country’s jobs can be performed entirely at home – Pollak said we could eventually see as much as 33% of the country’s work days completed from home.

“Hybrid is going to be the new normal,” she said.

Better work-from-home tech

Improved technology will also help remote work figures rebound.

Pollak said she expects to see more companies invest in remote work-enabling technology this year. Think stateof-the-art rooms built for Zoom meetings, with privacy glass that hides the screen from passersby.

“There’s been a bit of a pause in business investment about the past year, 18 months, but that’s likely to recover when (interest) rates come down,” Pollak said. “That will likely lead to investment­s in these technologi­es that make remote and hybrid work better.”

And five years down the road, Bloom said offices may start implementi­ng things like holograms and virtual reality devices to help remote employees connect.

“In the long run, the thing that really matters is technology,” he said.

Redesigned office spaces

Companies may use the new year to redesign office space to make workers’ time in the office more efficient, Meier said. That means building out spaces that facilitate brainstorm­ing sessions.

“If you go into the office, it should be all collaborat­ion and social interactio­n,” he said. “Once we figure that out, I think there is going to be an advantage to a hybrid workplace compared to a work where everybody comes to the office five days a week.”

A new take on office buildings

Expect to see more cities address the new work trends in 2024.

Meier expects more cities to look at easing zoning laws and other regulation­s to make it easier to convert empty office space into apartment buildings, a move that could help revitalize city centers and ease the national housing shortage. The U.S. office vacancy rate hit a 30-year-high of 18.2% earlier this year, according to CBRE.

We’ve already seen certain cities like San Francisco pass legislatio­n that rolls back red tape to make office conversion­s easier. Meier expects other cities to follow.

“Cities have to reimagine themselves,” Meier said. “I expect 2024 and 2025, more cities are becoming really desperate.”

 ?? GETTY IMAGES ?? Thirty-eight percent of companies require full-time in-office work, down from 39% one quarter ago and 49% at the start of the year, according to software firm Scoop Technologi­es.
GETTY IMAGES Thirty-eight percent of companies require full-time in-office work, down from 39% one quarter ago and 49% at the start of the year, according to software firm Scoop Technologi­es.

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