New Delhi [India], November 18 : Work from Home (WFH) is beneficial in terms of saving on rentals, reduced commuting stress and increased efficiency for employees and but it is detrimental to effective communication and Teamwork says a report.
The report by the Confederation of Indian Industry (CII) and the Faculty of Management Studies (FMS) reveals that while work-from-home (WFH) has brought substantial benefits, it also presents significant challenges for both employers and employees.
The study highlighted that WFH has led to considerable cost savings for organizations and employees. It said ". In terms of cost savings, remote working has enabled a very significant reduction in employee commuting time and costs and provided them with the flexibility to live in more affordable areas".
This has not only improved their energy levels but also enhanced their flexibility in choosing affordable residential locations.
However, the study also highlights some downsides of remote working. A key concern is the negative impact on effective communication and teamwork. The absence of physical interactions has hindered collaboration among employees, which is essential for building trust and solving complex problems.
For organizations, the report noted that remote and hybrid working models have allowed moderate savings on office rental costs and costs associated with client meetings.
Additionally, the reduction in employee commuting and accommodation costs has enabled limited adjustments in employee compensation structures. These cost savings collectively contribute to better financial efficiency for both employers and employees.
Moreover, the study warns that WFH may pose challenges to developing and sustaining an organization's culture. Over time, this could affect the formation of social, emotional, and human capital, which are vital for long-term organizational success.
The report emphasized that while remote working offers tangible short-term benefits, organizations and employees must remain cautious about the potential intangible losses it may bring in the future.
Balancing flexibility with opportunities for collaboration and interaction could be the way forward to make remote working sustainable in the long run.
It said "These losses may be intangible in nature, relating to the formation and sustenance of social, emotional, and human capital".
The findings provide food for thought for organizations seeking to optimize their work models in a rapidly changing professional environment.
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