Whether at home, in the office or on the move: you can work almost anywhere. Since the outbreak of the coronavirus pandemic at the latest, working from home and remote working have become the biggest trends in the world of work. In June 2021, around 28% of all employees in Germany were working partly or entirely from home^.1 This has many advantages, such as flexible working hours, a good work-life balance and time savings. However, working from home can also be challenging: What gets done quickly in the office can drag on at home between cleaning and cooking. Working in the office or at home? We show you the advantages and disadvantages of working from home for employees and employers.

What does remote work mean?

Workers increasingly want flexible working hours and locations. The principle of remote work, which loosely translates as "remote working", is based on a mobile and flexible way of working in which employees perform their work tasks outside of the office, mainly with the help of digital communication. Around 82% of employees in Germany believe that remote work is the future of work^.2

However, there is a difference between working from home and remote working. Home office refers to working from home, where the workplace is specifically located within your own four walls. Remote work, on the other hand, is a form of work that is independent of time and place, in which the employee can complete work assignments in a mobile and flexible manner. This means that work can be done anywhere and at any time without being tied to the traditional office or home office.

Advantages of remote work

In the modern job market, mobile working is no longer a rarity - and not just in individual professions. Many employees in the IT, finance, tax consultancy, design and journalism sectors make use of the opportunities offered by remote working. Around 73% of employees surveyed in Germany therefore agree in principle with the legal right to work from home^.3 This in turn has the following advantages for employers:

• Increased productivity

42% of respondents in a study by GitLab stated that productivity actually increased in a mobile environment when working remotely^.4 Employers can take advantage of remote working to increase productivity within the company^.

• A good work-life balance

Satisfied employees do a good job. By working remotely, they enjoy greater flexibility in terms of scheduling and daily organization. Working hours can be adapted to individual needs. 73% of participants in a study by DAK Krankenkasse state that working from home has enabled them to harmonize their professional life with their private life and their own rhythm^.5

• Cost and time savings

As there is no need to provide a permanent workplace for the employee, the employer can offer places in the office on a rotating basis and has to bear fewer costs. In addition, there are no traffic jams and no overcrowded public transport - the employee saves time on the commute, as 76% of respondents stated in a study by the DAK health insurance fund^.6 The cost of petrol and travel tickets can also be saved.

• Positive image

The positive image of the employer should not be underestimated. The offer of a home office indicates that the company is modern, as certain technical requirements are necessary for successful remote working. According to a study by Bitkom, one in two employees would like to determine their own working hours and location^.7 Remote work also makes it easier to recruit high potentials - employers have more choice of candidates, as aspects such as geographical location or handicaps play less of a role.

Disadvantages of remote work

Even if the alarm clock rings later and employees can start their working day with more motivation, the remote work model can also have some disadvantages.

• No clear demarcation between professional and private life

Although employees can flexibly determine their working hours when working remotely, around 60% of employees believe that the boundary between work and private life becomes blurred when working from home. ⁸ The pressure to be constantly available is not uncommon - around a quarter to a third of employees are also expected to be available in their private lives. Employees who are frequently contacted after work and in their private lives complain more often about physical complaints such as back pain or sleep disorders. ⁹ There is also a risk of distraction when working from home, such as watching TV for almost 17% or cooking for around 15% of the remote workers surveyed in a US study. ¹⁰

• Lack of social contacts

After all, people are also social creatures - so chatting with colleagues over coffee when you're not working in the office is something you'll miss at some point. Three out of four employees lack direct contact with colleagues when they are permanently working remotely. ¹¹

• Communication problems

A lack of direct contact often leads to misunderstandings at work. 67% of managers surveyed in German companies stated that they experienced organizational problems when working from home. The main reasons for this are difficult communication and a lack of coordination with colleagues and managers^.12

• Lack of self-organization and time management

Many want it, but not everyone can do it: remote workers need to have their self-management under control. Without this, efficient and productive work is virtually impossible. The employer only has limited opportunities to control or structure the way employees work. Interestingly, however, virtual teams with the right control mechanisms are even more effective than on-site teams, partly because constructive feedback is valued more. ¹³ The right control mechanisms can therefore support remote workers in their self-management and provide a framework for orientation.

Conclusion

For a long time, traditional face-to-face work was the only form of work and certainly has many advantages. However, technological progress has given rise to models that also enable remote working. A good management culture and clear communication from managers are of great importance here. Whether the advantages or disadvantages outweigh the disadvantages depends heavily on the individual employee and the job in question - and must ultimately be decided jointly by the employee and employer.