Since the Covid-19 pandemic swept the world in March 2020, business owners have been engaged in a debate about the effectiveness of remote working.

While working from home was mandatory for many people during the height of Covid, restrictions have now been lifted – but the practice of remote work has remained intact for many businesses.

Following this sea change to the way we live and work, you may be wondering: “Where should my employees be working in a post-Covid world?”

With all this to consider, read on to discover some pros and cons of remote, hybrid, and office-based working, and to learn how you could strike an appropriate balance for your own business.

Remote working: a blessing for business owners, or an excuse to keep up the Netflix subscription?

When Covid hit, remote working quickly became the norm for office-based employees worldwide.

Of course, there are some significant upsides to remote work for both you and your employees, including:

• Saving time, money, and fuel that would have been spent commuting
• Reducing the amount spent on meals, snacks, and coffees
• Recruiting, or being recruited, on a national basis instead of locally
• Enabling those with children or other care responsibilities to work more flexibly.

What’s more, employees have reported being much more productive when they have the option to work from home.

Research published by Forbes has found that if an employee “slacked off” in the office, they’re likely to do so at home – but productive employees remain productive no matter where they work. In fact, during the pandemic, the study discovered that there was a 5% uptick in productivity from those working remotely.

Plus, according to the Buffer 2022 State of Remote Work survey, 86% of workers preferred a fully or almost fully remote working routine over hybrid or office-based working.

Now that remote work is no longer essential, though, some business owners are calling its efficacy into question. Indeed, there are some downsides to remote work that you may wish to consider as a business owner. These may include:

• Less control over the specific working routines of your employees
• Purely transactional working relationships being formed online, instead of deeper, more committed friendships that could form more easily in a physical work environment
• Social isolation felt by both you and your colleagues, which could result in poor mental health
• Low morale – without an office environment, you may find your team feels a little distant from each other, and morale could suffer as a result.

So, while costs may decrease with a from-home team, it’s important to be aware of how remote work could affect your employees in the long term.

With these pros and cons in mind, let’s look at the opposite end of the spectrum: a return to full-time office working.

Returning to the office: a beneficial step back into normality, or an unnecessary box-ticking exercise?

One of the most hotly debated trends that has emerged in the last year is CEOs calling for their employees to return to the office full-time.

Perhaps the most ironic of these examples is Zoom, the video conference company that saw an almost-overnight success during 2020, which has now demanded that local workers return to the office.

According to a report in the Irish Times, the company has asked all employees within 80km of an office to work from that office for at least two days every week. While this isn’t the full-time return that many are asking for, it is notable that even a successful video conferencing company is leaning into the benefits of in-person working.

Indeed, although commuting costs, flexibility, and productivity may be sacrificed at the altar of full-time office working, there are some advantages for business owners and executives.

According to an Envoy report, 96% of executives notice the work done in the office more than if the same work were being done at home. As a result, those who work in physical proximity to managers and business owners are more likely to see career progression.

As a business owner yourself, you may find that interacting with your employees daily could give you a clearer picture of who has the potential, attitude, and work ethic you’re searching for. Consequently, you may be able to offer those individuals better progression, which could be conducive to long-lasting working relationships.

Hybrid working: the ideal balance or an over-complicated compromise?

After looking at the above two extremes, perhaps the easiest compromise is to meet in the middle and implement a hybrid working programme.

It seems as if this model of work has become increasingly popular since Covid restrictions lifted. According to a Chartered Institute of Personnel Development (CIPD) report, 42% of companies in Ireland have more than half their employees working in a hybrid setting.

Despite the notable benefits of this balanced form of work, there could be some disadvantages to the hybrid work model. If you have a large number of employees, keeping track of everyone’s schedules could bring on undue administrative hassle, and may make it difficult to schedule team events and meetings.

What’s more, having a hybrid setup may mean you are required to have a bigger office space than if many of your employees worked remotely.

Nevertheless, you could find that hybrid working offers the “best of both worlds” without raising costs too high.

Tailoring an environment that suits your company’s needs could be more helpful than following a trend

Ultimately, there is no “one size fits all” working model that will benefit every single business.

While it can be helpful to read others’ insights on the subject of remote, hybrid, and office-based working, it’s up to you to assess the needs of your company and act accordingly.

When looking at which model of work could be right for your business, the following factors are likely to have an influence on your decision:

• How many employees you have. Small teams could benefit from in-person working, whereas larger companies could potentially grow more efficiently with remote options.
• The type of business you run. Digital companies may have more success with remote working than those providing a physical service to clients.
• The level of office-based investment you can afford to make. A large team in office-based roles means hiring or buying a space that comfortably accommodates the whole company.

Although it can be challenging to decide on the working model that could benefit both the needs of the business and those of the employees, it could be helpful to reframe your thinking. In the post-Covid workspace there are now three viable modes of working to choose from, opening up all sorts of possibilities for businesses around the world, including yours.

Working with seasoned financial planners can help you manage your wealth in a changing world

If there’s one thing we can expect in life, it’s the unexpected. Just like Covid-19 affected us all, unexpected events can have an impact on your personal life that might prompt you to change course, adapt your thinking, or seek support.

As experienced financial planners, we work with business owners who are committed to being prepared for any life event that may come their way. To learn how we can help manage your personal wealth, email us at clients@iqf.ie, or call 353 71 915 5560.

Please note

This article is for information only. It does not constitute advice.

It describes financial planning services that iQ Financial can offer to you. Financial planning services are not regulated by the Central Bank of Ireland.