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What Do We Like About WFH?

• Vasundhara Sawhney

Evaluating the pros and cons

Nearly a year into working from home because of Covid-19 closures, each day seems exactly like the one before. I wake up at 7 AM , prep meals, help my son with online school, work alone in a makeshift office, exercise, and finally drop into bed exhausted. Personal-professional boundaries—once difficult to manage—have been entirely erased. As many people in similar situations have noted, we aren’t just working from home (WFH) anymore. We are living at our jobs.

• Vasundhara Sawhney is a senior editor at Harvard Business Review.

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Before jumping into something new, we often weigh the pros and cons. During the pandemic, many workers were forced to work from home and, unfortunately, didn’t get this luxury. But since then, the dust has settled, and many are considering making working from home (WFH) their primary way of working. If you are one of these workers, you're likely in the process of evaluating the advantages and disadvantages of this work style and what it does for you.

It's often helpful to hear from people with prior experience who have seen the benefits and challenges of working from home firsthand (outside of ourselves). To help, we reached out to the work-from-home, remote work, and digital nomad communities to get their perspectives on remote work and WFH. Plus, we included tips for combatting the most common challenges of working from home.

Pros and cons of working from home

Pro: remote workers feel less stressed, con: working from home can be lonely, pro: no daily commute, con: communication + collaboration can be a challenge, pro: remote workers have flexibility in their schedules, con: it's challenging to build a remote company culture.

In 2023, remote workers reported being less stressed than their in-office and hybrid counterparts . This could be due to a number of factors, such as no commute time, less overall spending of money, more time to focus, etc. In fact, hybrid workers - who have the option to work both in-office and from home - say that working from home is best for tasks like working independently, focusing, thinking creatively, and balancing work and life.

That being said, some workers thrive in a typical office environment. If you're new to WFH and struggling to focus, we have some productivity tips and music playlists to help you focus .

Pros: less stress, greater ability to do focused work, being there for my family, more time for pretty much everything that matters (fitness, creative pursuits) Cons: have to be far more intentional re: social engagement. It's easy to put systems in place to deal with other cons — Scott Dawson (@scottpdawson) January 7, 2020

When you work from home, you're likely flying solo most of the time - this may be why 20% of managers say their top workplace concern is employee loneliness . Being alone can create feelings of isolation and loneliness and can often hurt your health and productivity. It's important to build in time for social interaction, even if it isn't in-person.

To combat these feelings, schedule a virtual coffee with a coworker or join a Slack community to socialize with other people who share similar interests as you. If you need even more inspiration, check out these tips to combat the work-from-home loneliness you might be feeling.

If you work in a city, you've likely experienced the hassle of commuting. Whether you're taking public transportation or stuck in traffic, your mind might wander and think about all the other things you could be doing during your commute time. Studies have shown that commuting negatively impacts health and happiness - and in 2023, 33% of workers reported commuting 31-45 minutes (one way) every day . When you work from home, not only will you have more free time in your day, you're likely to see an improvement in your well-being too.

Pros, loca tion freedom, no commute, time to spend with my people, in community, enjoying hobbies. Personal experience, better Comms, more intentional focus on trust. Cons, isolation, career progression, stigma from those who don't understand remote "but do you really work?!" 🙈 — Rose Barrett 🌹🍀 (@RemoteRose) January 7, 2020

Effective communication and collaboration can be hard to achieve when you and your colleagues are distributed across different locations. This means that the tools and strategies you use to communicate need to be thought out and intentional.

Determine which asynchronous communication tools you'll use (e.g., Slack and email) and make sure you have a consistent schedule for face-to-face conversations via video conferencing . When everyone's clear on the methods of collaboration, miscommunication will become less frequent.

Synchronous tools are also important. If you are working from home, you will likely have telecommuting calls with others in the office. In-office employees need to ensure they have the right hardware in place to have collaborative discussions. Consider tools like a 360-camera to capture everyone in the room , along with a dedicated whiteboard camera for brainstorming sessions.

Love this! Landing a consistent style of collaboration and actively promoting inclusion are areas companies need to explore for a positive experience for remote workers. These are key challenges for “hybrid” companies (HQ-based office workers, periodic wfh, and compete remote). — Julie Carey (@jcarey2424) January 7, 2020

Raise your hand if you have responsibilities and obligations outside of your day-to-day job. I'm sure most (if not all) of us have our hands up. Depending on your organization's remote or hybrid work policy , you can schedule your day to accommodate aspects of your life outside of work.

Need to run to a doctor's appointment in the morning? Go for it! Have to hop offline for an hour to pick up your child from school? No problem! Remote work gives you the flexibility to manage all aspects of your life, whether they're directly related to your work or not.

My parents are in their 80's. I can travel to their home, spend time with them (and clean out the refrigerator) while working. The only con is they don't believe I'm working 😂 — Kitt Miller (@netbaby1997) January 9, 2020

If you have a remote team, there are certainly advantages and disadvantages of employees WFH. For one, company culture needs to be more intentional. The ways remote teams get to know one another and collaborate are different than they'd be if everyone worked together in the same office. Luckily, there are remote culture tools and resources that can be used when team members aren't able to get together in-person. Remote leaders and managers need to remember that transparency is key for employees to have the information they need to work independently and feel engaged with their work.

We love our remote workers! Pros: -Communication is more purposeful -Flexibility of time encourages diverse hires Cons (unless you're @GAPartners ): -Losing out on company culture -Collaboration can be a challenge #remoteworkers #digitalnomads #wfh — G&A Partners (@GAPartners) January 8, 2020

With most of the working world experiencing remote work during the pandemic, it is no surprise that many want to WFH full-time. If employers are to take away anything from our 2023 State of Hybrid Work Report , it’s that flexibility reigns supreme. If companies offer their employees the flexibility to work from home or the office - or a combination of both! - workers will be happier and more willing to go the extra mile. That said, it’s important to set employees up for success when they work remotely.   

If you’re trying to make the transition to remote work, check out our tips for asking your manager .

11 Pros and Cons of Work from Home: Exploring the Advantages and Disadvantages

This advantages and disadvantages of work from home essay will explain the pros and cons of working from home.

Discover the advantages of flexibility and increased productivity, alongside the challenges of isolation and blurred work-life boundaries.

Gain valuable insights into the work-from-home phenomenon and make informed decisions about your own professional journey.

Dive into the advantages and disadvantages of remote work, and unlock the key considerations for finding the right balance in this engaging blog post.

Let’s dive into the advantages and disadvantages of work from home essay.

Ah, the glorious freedom of working from home!

Picture this: You roll out of bed, grab a cup of joe, and dive into your work without ever facing the dreaded commute or office small talk.

It’s a dream come true for many of us, and it’s not just about the convenience of staying in our pajamas all day (although that’s definitely a perk). 

In this part of the article, we’ll explore the numerous benefits of working from home that go beyond the comfy attire, showing you why embracing the pajama professional life might be the best decision you’ll ever make.

https://unsplash.com/photos/g9KFpAfQ5bc

From bidding farewell to the dreaded commute to enjoying increased productivity, improved work-life balance, and even saving money, the perks of working from home are undeniable. It’s a lifestyle that grants you the freedom and flexibility to design your work environment and schedule tailored to your preferences and needs.

So, if you’re still on the fence about embracing the pajama professional life, consider the advantages we’ve explored.

The absence of a daily commute allows you to reclaim valuable time, reduce stress, and engage in activities that truly matter to you.

The ability to focus in a distraction-free environment leads to heightened productivity and a sense of accomplishment.

Integrating work and personal commitments seamlessly ensures a healthier work-life balance, nurturing your overall well-being.

Moreover, remote work not only benefits you personally but also has a positive impact on the environment. Reduced transportation results in cost savings and a smaller carbon footprint, making it a win-win for your wallet and the planet.

Of course, working from home has its challenges. Loneliness, the need for self-discipline, and potentially blurred boundaries between work and personal life require careful navigation. However, these challenges can be overcome with the right strategies, such as establishing a dedicated workspace, maintaining regular communication with colleagues , and setting clear boundaries.

More about the disadvantages of working from home later.

In recent years, the COVID-19 pandemic has accelerated the shift towards remote work, with many companies recognizing its benefits and embracing hybrid work models. As the world becomes more interconnected, technology advancements make remote collaboration seamless, enabling professionals to thrive in their homes.

Related Reading: How to Access Chat GPT

In our advantages and disadvantages of work from home essay, we will start with the advantages of working from home.

Advantages of Working from Home Essay

Say goodbye to the commute.

Let’s face it—commuting can be a soul-sucking experience. Spending hours stuck in traffic or crammed into a crowded train is not exactly the ideal way to start or end your workday.

When you work from home, you bid farewell to the daily commute and say hello to extra time and reduced stress. Imagine reclaiming and using those lost hours for more productive or enjoyable activities. Whether catching up on sleep, exercising, or simply spending quality time with your loved ones, the lack of commuting opens up a world of possibilities.

Increased Productivity 

Working from home offers a prime environment for enhanced productivity. You can focus on your tasks without interruptions without the usual office distractions. No more impromptu meetings or colleagues popping by your desk for a chat about the latest reality TV show. Instead, you can create a dedicated workspace tailored to your needs, free from distractions.

Moreover, the flexibility of remote work allows you to structure your day in a way that suits your preferences and energy levels. If you’re an early bird, you can tackle important tasks in the morning; if you’re a night owl, you can burn the midnight oil. You’ll accomplish more in less time by aligning your work hours with peak productivity periods, giving you a sense of achievement and a better work-life balance.

Let’s further explore the pros and cons in this advantages and disadvantages of work from home essay.

Improved Work-Life Balance  

One of the most significant advantages of working from home is achieving a healthier work-life balance. Traditional office settings often blur the lines between professional and personal life, making switching off from work-related stress and responsibilities challenging.

When your office is just a few steps from your living room, you have greater control over your schedule. You can integrate personal commitments, such as attending family events, exercising, or pursuing hobbies, into your workday. This flexibility allows you to design a routine that aligns with your individual needs, leading to increased job satisfaction and overall well-being.

Furthermore, remote work saves precious time that would otherwise be spent commuting or getting ready for the office. This newfound time can be utilized for self-care, pursuing personal passions, or engaging in activities that bring you joy.

The result? You feel more fulfilled and energized, ready to enthusiastically tackle professional and personal challenges.

Cost and Environmental Benefits

Working from home can be kind to both your wallet and the environment. When you’re no longer commuting, you save on transportation costs, whether it’s fuel for your car or public transportation fares. Additionally, remote work eliminates the need for a separate work wardrobe, saving you money on professional attire.

Moreover, remote work significantly reduces carbon emissions associated with commuting. Fewer cars on the road translate to cleaner air and a smaller carbon footprint. By embracing remote jobs, you contribute to a more sustainable future and help protect the planet.

Also, one of the small benefits of working from home is that you can spend more time with your pets. Sometimes your dog or cat can feel lonely and that you don’t spend enough time with them. Remote work allows getting to know your pet closer and having quality time together. Basepaws review can also help you to know your pet better.

So, whether you’re a freelancer, a remote employee, or considering negotiating a flexible work arrangement with your employer, the benefits of working from home are waiting for you to embrace them. Say goodbye to the mundane office routine and embrace the freedom, flexibility, and personal fulfillment that come with the pajama professional life.

https://unsplash.com/photos/FHnnjk1Yj7Y

The Disadvantages of Working from Home: Balancing Flexibility with Challenges

Let’s continue our advantages and disadvantages of work from home essay by exploring the disadvantages of working from home.

The concept of remote work has gained significant traction in recent years, revolutionizing the traditional office environment.

While working from home offers numerous benefits, such as increased flexibility and reduced commuting time, it is important to recognize that it also comes with its fair share of disadvantages.

In this part of the article, we will explore the potential downsides of working from home, shedding light on the challenges individuals may face in this ever-evolving professional landscape.

Isolation and Lack of Social Interaction

One of the most common drawbacks of working from home is the feeling of isolation and limited social interaction. When employees are physically distanced from their colleagues, they miss out on the spontaneous conversations, brainstorming sessions, and the overall camaraderie that can foster creativity and collaboration. The absence of face-to-face interactions may lead to a sense of disconnection, which can impact job satisfaction and mental well-being.

Blurred Boundaries Between Work and Personal Life

Working from home often blurs the line between professional and personal life, making it challenging for individuals to maintain a healthy work-life balance. With no clear separation between the office space and home environment, it becomes tempting to work longer hours, leading to burnout and decreased productivity. Moreover, the lack of physical boundaries may result in constant interruptions from family members or the inability to switch off work-related thoughts, thereby adding to stress levels.

Distractions and Lack of Focus

The home environment can be full of distractions, ranging from household chores to family responsibilities. The presence of tempting diversions, such as household tasks, television, or social media , can significantly impact an individual’s ability to concentrate on their work tasks. Procrastination becomes easier, and maintaining focus becomes a constant challenge, potentially hampering productivity and overall performance.

Limited Access to Resources and Technology

While technological advancements have made remote work more feasible, it is undeniable that not all employees have equal access to the necessary resources and technology.

In some cases, employees may lack a stable internet connection, have outdated equipment, or face other technological limitations. These disparities can create barriers to effective communication, collaboration, and access to vital tools or software, thus hindering productivity and professional growth.

Reduced Career Development Opportunities

Working remotely can limit an individual’s exposure to various career development opportunities. In a traditional office setting, employees have the advantage of face-to-face interactions, networking events, and informal learning experiences. Remote workers may miss out on these crucial avenues for professional growth, potentially impacting their chances of career advancement and skill development.

Strained Communication and Collaboration

Despite the advancements in communication technology, remote work can still present challenges when it comes to effective collaboration.

Remote employees heavily rely on digital communication tools, such as email, instant messaging, and video conferencing. However, misinterpretations, technical glitches, and limited non-verbal cues can hamper effective communication, leading to misunderstandings and reduced team cohesion.

Building trust and maintaining strong relationships with colleagues and supervisors can be more challenging when working remotely.

Impact on Mental Health and Well-being

The work-from-home setup can have a significant impact on an individual’s mental health and overall well-being. The lack of social interaction, feelings of isolation, and increased blurring of boundaries can lead to heightened stress levels, loneliness, and even depression.

Additionally, the absence of a physically separate workspace may contribute to difficulties in disconnecting from work, preventing individuals from fully unwinding and recharging during their personal time.

Advantages and Disadvantages of Work from Home Essay: FAQ

What are advantages and disadvantages of work from home.

Advantages: No commute, work in your pajamas. Disadvantages: Lack of digital resources, feeling of isolation, home life and work life becomes blurred.

What are disadvantages of working from home?

Lack of digital resources, feeling of isolation, home life and work life becomes blurred.

Conclusion: Advantages and Disadvantages of Work from Home Essay

While working from home offers undeniable benefits, it is crucial to acknowledge and address the disadvantages that come along with it.

The isolation, blurred boundaries, distractions, limited resources, reduced career development opportunities, strained communication, and potential impact on mental health highlight the need for proactive measures to counter these challenges.

Employers and employees must work together to find solutions that foster connectivity, establish clear boundaries, and promote a healthy work-life balance. By recognizing and addressing the disadvantages, we can strive towards a more balanced and productive remote work experience.

As you can see, working from home offers numerous advantages beyond the absence of a dress code. Remote work has become a preferred choice for many professionals thanks to eliminating the commute to improve productivity, achieving a better work-life balance, and contributing to a greener planet.

So, go ahead and embrace the perks of working from home. Your pajamas will thank you! However, working from home offers many benefits that extend far beyond lounging in your favorite PJs.

To recap: The advantages and disadvantages of working from home bring both opportunities and challenges to individuals and organizations alike.

On the positive side, remote work offers flexibility, increased productivity, and reduced commuting time. It allows individuals to create a better work-life balance and offers opportunities for those with physical disabilities or caregiving responsibilities. Moreover, it enables companies to tap into a global talent pool and save costs on office space.

However, there are also downsides to consider. Working from home can blur the boundaries between work and personal life, leading to longer working hours and burnout. The lack of face-to-face interaction may hamper collaboration and team bonding, affecting creativity and innovation. Additionally, the absence of a dedicated workspace can create distractions and hinder productivity.

Ultimately, the decision to embrace remote work depends on individual preferences, job requirements, and the nature of the organization. It is crucial to strike a balance between the advantages and disadvantages, implementing strategies to overcome the challenges while leveraging the benefits.

Whether it’s a hybrid model or a fully remote setup, clear communication, efficient task management, and regular check-ins become crucial to maintaining a productive and connected workforce.

Overall, the rise of work from home represents a significant shift in the way we work. It offers unique opportunities for individuals and organizations to adapt to the changing landscape of the modern workplace.

By carefully weighing the advantages and disadvantages presented in this advantages and disadvantages of work from home essay and implementing effective strategies, we can harness the potential of remote work while mitigating its challenges, ultimately fostering a more flexible, efficient, and balanced work environment.

Readers, please share this advantages and disadvantages of work from home essay so people considering abandoning the 9 to 5 traditional workday discover this post.

This post was contributed and made possible by the support of our readers.

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The Pros and Cons of Working from Home

By Ajoke Aminu

Published: December 2, 2023

Remote Jobs

Ajoke Aminu

Writer & Career Coach

Did you know that nearly 62% of companies opted to maintain remote work arrangements even after the pandemic?  As enticing as it may seem, we will highlight both advantages and challenges of working from home , so you know precisely what you’re getting into. Whether you’re a seasoned remote worker or considering making the switch, read on for a comprehensive guide on the pros and cons of working from home.

What is WFH (Work From Home)?

WFH or Work is the practice of working remotely or outside of a centralized workplace, either from the comfort of your home or from anywhere, using digital tools and communication technologies . Believe it or not, this idea was born in the 1970s when technology started to take hold of the world. However, the logistics of working from home were only possible due to technological advancements. It was not until almost two decades later when the internet became mainstream in the 1990s that it became more possible to work outside of the office. 

Furthermore, the sudden explosion of startups as well as people willing to balance work and life led to the rise of remote workers. Nevertheless, working from home is not without its difficulties. If you are trying to choose between the traditional work settings and WFH, delve deeper to understand the pros and cons of working from home. If you’re an adventurous and motivated person who is willing to take risks, then maybe working from home is perfect for you! 

As technology advances, so does the availability of remote work opportunities. Now, jobs ranging from product and project management to software development and virtual assistant work can be done from the comfort of your own living room. Even healthcare providers are beginning to offer telehealth appointments. So, whether you’re a night owl or an early bird, there are remote jobs that pay well out there for you. 

The Advantages of Working from Home

There are significant advantages of working from home. But beyond the more obvious pros and cons of working from home, there are also some less commonly touted advantages that come with the territory. Here, we’ll explore the many ways in which working from home can enrich your life—and your career. So, grab a cup of coffee, settle in, and get ready to discover the surprising benefits of telecommuting . 

Flexibility

Working from home offers many advantages, the most obvious being the comfort of your own space. If you’re someone who enjoys the flexibility of setting your own schedule, working from home might be a great option for you. As long as you carefully weigh the options, and establish good habits and boundaries, working remotely can be a liberating and effective way to get things done.

We can’t overlook the minimized commute stress—without the daily rush-hour drudgery, you can begin your workday with lower stress levels, which could have a positive impact on your performance. While there are always pros and cons to working from home, it’s hard to deny the benefits of the flexibility that comes with it.

Personalized Work Space

As many shift towards remote work, there has been plenty of talk about the pros and cons of working from home. One major advantage that cannot be ignored is the ability to create a personalized workspace. With a customizable environment, you have the freedom to make your workspace as cozy or professional as you desire. You can decorate your workspace with photos, plants or even choose a bright or dimly lit setting without having to worry about disturbing your colleagues.  

Additionally, working within a familiar and comfortable environment can reduce stress levels compared to the pressures and distractions that can arise in a traditional office setting. It’s safe to say that with the right adjustments and mindset, working from home can lead to a more balanced and productive day.

Increased Productivity

When it comes to getting things done, fewer distractions are the key to success. As it turns out, the workplace can be a veritable minefield of diversions–from chatty colleagues to ringing phones. You know that feeling when you’re trying to concentrate on a task and then suddenly your phone buzzes or a coworker calls your name from across the room? 

Depending on your job and work style, you may find that the advantages of working from home include fewer interruptions and more focused work time . Any way you slice it, minimizing distractions is a key ingredient for increased productivity. 

Work-Life Balance

For starters, a flexible work schedule helps you juggle both your work and personal life more efficiently. Also, no more long commutes means that you can spend more quality time with loved ones; take up hobbies or interests you had no time for before, or just relax. However, maintaining a proper work-life balance is essential, and it’s crucial to establish a line between work and home–a dedicated workspace can help with this. Whether you embrace the change of remote work or not, there is no denying that it has made a significant impact on balancing our priorities.

Cost Savings

One way to achieve cost savings is by reducing expenses on transportation and work attire through remote work. The pros and cons of working from home are widely debated, but one undeniable advantage is the money saved on gas, tolls, and public transportation. Beyond that, the need for professional work attire is eliminated, freeing up even more funds for personal use. 

Pet Companionship 

Without the need to leave your furry friend behind, you get to enjoy their constant presence throughout your workday. They not only provide emotional support but also encourage you to take quick breaks and stretch your legs during the day. Allowing your pets to cuddle or sit on your lap can reduce stress and make you feel relaxed. Let’s not forget the occasional laughter and giggles they bring to our lives with their playful behavior. 

Overall, working from home has numerous advantages. You’ll enjoy fewer workplace distractions, and on a fun note, you can have your furry companions, take as many coffee breaks as you wish, and even work comfortably in your favorite PJs! 

The Challenges of Working from Home

With the good comes the bad and there are certainly challenges of working from home. While it may seem glamorous to work from the comfort of your own home, it requires discipline and a strong work ethic to be successful. The question now is, can you overcome these challenges of working from home?

Lack of Social Interactions

Working from home can be isolating, as there is limited face-to-face interaction with colleagues, leading to a potential sense of loneliness and reduced social connections. As much as we might sometimes complain about coworkers or office small talk, we can’t deny the benefits of being around people, even if it’s just to have a captive audience for our dad jokes. We need social interactions to thrive as humans, so if you’re finding yourself feeling isolated while working from home, it might be worth the effort to find ways to connect with others, whether it’s through virtual co-working sessions or joining online communities related to your industry.

Distractions

We’ve mentioned how working from home means less work distractions. However, sometimes working from home can feel like a minefield of distractions, especially if you have a family. Whether it’s the laundry begging to be folded, the kids playing in the next room, or the temptation of social media , staying on task can be a challenge. Yet, with a few adjustments and some discipline, the benefits of remote work can still outweigh the cons.

Difficulty Staying Focused on Work

Working from home can be a double-edged sword–while it comes with the comfort of your own space and a potential hike in productivity, it also throws a roadblock in the way of focus. The idea of working in your pajamas while snuggling with your cat might sound dreamy, but the reality is that it can be hard to stay on-task. From social media to the tempting allure of the fridge, staying focused on work at home can be a struggle. 

The Blurred Line Between Work and Leisure Time

As many continue to work from home, we’ve noticed that the line between work and leisure time has become increasingly blurred. There is a potential difficulty in separating work from personal life and the tendency to work longer hours than we would in an office setting. It’s important to create boundaries and find a balance that works for us, while also recognizing that the nature of work is evolving before our eyes. 

Missing Out on Office Perks

Are you working from home and feeling FOMO (fear of missing out) on all the office perks? Not having access to free coffee, snacks, or the occasional catered lunch may seem like a small issue, but these little perks can add up and contribute to a sense of camaraderie and community within an office.  

Difficulty Building Meaningful Connections with Coworkers

As the workforce continues to shift towards remote work, it’s becoming increasingly common to feel disconnected from colleagues. Building meaningful connections with coworkers is infinitely more challenging when interactions are relegated to video calls and instant messages. While it’s tempting to prioritize our own comfort and convenience, it’s essential to find ways to build relationships with those around us, whether it’s a virtual happy hour or catching up on personal interests before diving into a meeting. After all, meaningful connections are what make work more than just a paycheck.

Tips for Working From Home

None of the pros and cons of working from home can be undermined. With a bit of effort, many of the challenges of working from home can be managed. So, apply a little bit of self-control, and you can make the most of the advantages of working from home while tackling the challenges of staying focused during work hours. 

Some tips that can help you achieve this balance include:

• Create a designated workspace separate from your living space, so you can mentally and physically separate work from leisure.
• Establish a routine that includes regular working hours, breaks and exercise to help you stay energized and focused.
• Communicate with your team and set boundaries with friends and family so you can successfully balance work and home life.
• Break tasks down into manageable chunks, and setting daily goals can help eliminate the challenges of working from home. 
• Identify potential distractions in your environment and take steps to minimize them, such as turning off notifications on your phone and using noise-canceling headphones.
• Create a to-do list or use project management tools to prioritize tasks and stay organized.

Let’s take a moment to recap what you’ve learned about the pros and cons of working from home. On the plus side, there are certainly some appealing pros to this lifestyle. You get to skip the morning commute, enjoy a more flexible schedule, and save on those pesky office snacks. However, it’s not all sunshine and daisies. The challenges of working from home include a lack of accountability, distractions from family members, and the risk of feeling isolated.

Of course, we can’t forget about the undeniable advantages of working from home, such as increased productivity, lower stress levels, and the freedom to work in your pajamas if you so choose. Overall, it’s up to you to weigh the pros and cons and decide if the WFH life is right for you. 

As we conclude, the main takeaway is for you to find the right work-life balance as a remote worker. Ensure you implement the tips for working from home because they are essential to having a healthy work-life balance. So, whether you’re a seasoned remote worker or just starting to explore the option, approaching the decision with a clear understanding of both the benefits and challenges is crucial. Just don’t forget to put on pants for those Zoom meetings! 

Related articles:

• 20 Work-From-Home Tips to Boost Your Productivity
• How to Work Remotely and Travel
• 9 Easy Remote Jobs to Jumpstart Your Online Career
• Virtual Meeting Etiquette: A Guide to Professional Online Interactions

About the Author

Read more articles by Ajoke Aminu

The Working From Home Pros and Cons You Need to Know

Think working from home is a great option for you? Here’s a reality check on what you can expect if you pursue the option to telecommute.

I began to telecommute from a home office in 2001, and I can’t begin to tell you how many people have told me that they wish they could do the same. The extreme reactions I get have me believing most people think I’m living the good life, lounging around all day, spending time with the kids and working here and there when I feel like it.

The reality is this: Working from home has its perks, but basically it’s work. Before going down this path, you will want to consider some working from home pros and cons.

Pro: It's easier to focus when you telecommute

For many people in administrative jobs, it’s easier to focus with fewer meetings to attend and no coworkers stopping by your desk to chat. You may get more work done in less time.

Con: It's more difficult to manage some tasks

The option to telecommute isn’t for everyone. You need to be very self-directed to be productive. It can take a while to get used to less face time with colleagues, and some people never do.

In most administrative jobs, it’s critical that you be there in person. Managers like to know they can easily talk to admins at their desks, and it’s generally easier to coordinate administrative tasks or projects when you’re on-site. If you screen phone calls, it can get complicated working remotely.

Pro: You're at home

You get to work from the comfort of your home!

Con: Here you are — still at home

You get to work from the comfort of your home. The dishes left in the sink at breakfast are there to greet you when you break for lunch. The family dog who barks at everyone who walks by your house may have you taking conference calls in the quiet of your child’s room, like me.

Pro: There's some flexibility for life needs

You have some flexibility to handle personal demands. For instance, you know you’ll be there when a package is delivered or a contractor stops by to make house repairs.

Con: It may be harder to be available for work needs

When you telecommute, for administrative jobs, this doesn’t mean you can just work whenever it’s convenient. You need to make sure you’re available during business hours. You'll also want your young children at childcare when you're working from home. It’s next to impossible to watch your kids and do your job well simultaneously. Imagine having children making noise in the background when your boss or an important client calls — not good. Most employers will expect you to make childcare arrangements before they will agree to this work arrangement.

Pro: You're already at the office

You can’t beat the ease of going to work at a home office. No commuting!

Con: Friends and family can find you

Your friends and family may not understand what it means to telecommute. Don’t be surprised to receive personal calls during work time or get requests to get together on weekdays — no matter how clear you are about your work hours.

OfficeTeam offers administrative professionals resources including career advice and training opportunities. Explore all the reasons to work with us today.

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Working from Home: Pros, Cons, and Strategies for Success

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Published: Sep 7, 2023

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Advantages of working from home, disadvantages of working from home, strategies for success in working from home.

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Work from home – Pros & Cons

Table of Contents

Advantages for Employees:

Disadvantages for employees:, advantages for companies:, disadvantages for companies:, conclusion:, photo by  andrea piacquadio  from  pexels, want to listen to this instead.

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Pros And Cons Of Working From Home You Need To Know

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Remote work isn’t an entirely new concept. In recent years, it has become increasingly popular with the younger generation who prefer the freedom of freelance work over the stability of corporate jobs. However, recent events have abruptly thrown businesses across various industries into the setup—unprepared and ill-equipped for such a scenario. If you’re new to   leading a remote team , you’ll undoubtedly face new   challenges . And with almost everyone else new to the work-from-home, it can be even more daunting. However, these teething pains don’t necessarily mean that it can’t be a feasible work format. With the right tools and   strategies , WFH can actually be an effective work mode alternative that you can include in your long-term business plan.

Pros And Cons Of Working From Home

The pros of working from home

Some people have readily embraced the WFH setup for the convenience it offers. But aside from saving costs on transportation and being able to work without a dress code, it has plenty of other advantages. Among those are:

1. More work flexibility

WFH gives you more flexibility to make independent decisions and work with your own rhythm. This results in higher employee satisfaction and morale.

2. Improved focus

Unless you live in a noisy and crowded dorm,   WFH means   you have an entire room all to yourself. With no office distractions and interruptions from coworkers, you can focus better on your work and finish tasks much faster.

3. Better attendance and punctuality

No long commutes and no traffic jams mean fewer instances of tardiness and absenteeism. Even if you have errands to run or personal appointments to go to, you won’t have to completely miss work to accomplish them.

4. Access to a wider talent pool

You can build your team or enhance your existing one without worrying about location. Some individuals may be highly qualified but hindered by limitations such as disabilities or geographical location. Through remote work, you can include them in your team without restrictions. Remote work also introduces opportunities for tax savings. Those working from home should be aware that they can claim home office deductions if eligible. Such deductions can lessen the financial burden of maintaining a dedicated workspace.

5. Better collaboration

A WFH setting removes geographical boundaries and enables you to work with partners across states and all over the world. With the right tools and communication plans, you and your team can collaborate in real-time despite being in   different time zones .

The cons of working from home

While working from home has a lot of advantages, it has its downsides too.

1. Costly equipment

You must invest in the proper equipment for your team. Unlike in the traditional workplace where employees can share some equipment, you’d need to provide them for each of your staff.

2. Risk of lower productivity

With remote work, people either over perform or become complacent. If you find it hard to switch off from work mode at home, you can become too stressed and suffer from burnout. You can also become too relaxed in the comfort of your home that you lose motivation to work efficiently. Either way, it can have potential negative impacts on productivity.

3. Plenty of distractions

At home, the line between   family and work   becomes blurred. There are no clear boundaries between personal time and work hours. You can easily get distracted by pets, kids, chores, television, and even neighborhood activity. Here are more   work from home distractions   and ways to avoid those to ensure WFH productivity.

4. Social isolation

With no face-to-face interactions, it’s easy to feel alienated from society. You lose your sense of belonging and feel as if you’re not part of the team. If unaddressed, this can affect the employee turnover rate negatively.

5. Limited access to information

Among the greatest challenges that remote work poses is enabling access to information. In a WFH setting, you can’t simply walk to another person’s cubicle to ask for feedback or details on a current project.

Turning a temporary setup into a long-term solution

Now that you’ve weighed the pros and cons of working from home, you can make more informed decisions on whether to offer it as an alternative to your employees or not in the longer run. If you decide to do so, here are some points you need to consider:

1. Develop a digital work culture

It’s important to establish a company culture in a traditional workplace. Similarly, you must also   develop a digital work culture   for WFH setups. Although physically distant, ensure that everyone adopts the company vision and has a sense of belonging. It’s also essential to set clear boundaries and establish a structure for work.

2. Focus on employee experience

The abrupt shift to remote work can lead to anxiety. Employees may struggle with the new workflow, which can affect their performance. Make the transition smoother by providing them with the necessary tools and offering encouragement. Acknowledge individuality but maintain a standardized way of working to develop consistency.

3. Enhance communication and collaboration

Stay connected through daily check-ins, weekly meetings, or monthly socials. Maintain constant communication to monitor the team’s progress and each individual’s well-being. It is ideal to use a digital work platform that provides   unified communication   and contextual collaboration to do so.

4. Provide technology support to remote employees

Equip your team with the tools they would need to do their job. Leverage cloud technology to give them easy access to information. Use mobile apps for maintaining communication and providing feedback to team members.

5. Ensure productivity using digital tools

Use tools such as time trackers and task management applications to ensure productivity. A unified platform such as the   Digital Workplace   creates a single space where your employees can easily access all the data, systems, and tools that they need. It can enable effective collaboration, coordination, and project management.

Transforming your business for the future

Remote work may come with many challenges, but you can overcome these by learning new skills and imbibing a digital culture. With the   right tools   and proper mindset, you can unlock new possibilities and transform your business for the future.

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Top 10 Advantages and Disadvantages of Working from Home

Table of contents.

Let’s be real, no matter where you’re working from, you’re still doing just that: working.

So, should you work from home or work from the office? It honestly comes down to the environment you’ll be most effective in, along with the industry you’re in. (And how nice your home office is.)

With that said, let’s take a look at some of the classic benefits of telecommuting!

Top 10 Advantages of Working from Home

• Flexible schedule. You can take breaks at any moment, feel no rush to hang up on your family members when they call, and eat lunch at any weird time you want.
• Custom environment. Set up your noise level just the way you want it — somewhere between insanely quiet to being at the front row of a Lady Gaga concert. And if you’re mindful of your workspace ergonomics , you can create a stronger rhythm for your workflows.
• Cozy clothes. You get to wear those sweatpants from college with the letters peeling off, or the leggings your friends don’t know you own. (And hopefully never will.)
• It’s easier to make calls. You won’t have to scramble to find a conference room or deal with a particularly chatty co-worker. (Granted, kids and pets at home can make this tough for some remote employees.)
• Knock off some weekend to-do’s. That Mt. Everest laundry pile waiting for you? That thing you set a reminder to get from the store 11 weeks ago? Cross. It. Off.
• No office distractions. Avoid co-workers debating the merits of cryptocurrency, sirens wailing outside your window, the AC kicking in as you hide your icicle tears.
• Zero commuting. From bed to … bed? Hey I’m not judging, it’s nice.
• Save money. Lunch is expensive if you work in a city or downtown. In San Francisco, it’s not crazy to see a $15 sandwich or $4 coffee. At home, you can save big time by going to the store and preparing food.
• Forget crowds and traffic. No stuffing yourself into a rickety transportation tube, having people scuff your new shoes, or walking behind agonizingly slow people who apparently don’t know what a straight line is. (Am I bitter? No … not bitter … )
• More time with loved ones. Take care of a sick significant other at home, be ready for your kids earlier in the day, get some extra snuggles in with your doggo, or simply get some quiet time to yourself!

Top 10 Disadvantages of Working from Home

• Willpower. Gotta get jamming on this new project, but Netflix says you still have 4 episodes of Tiger King to watch…
• Difficulty sticking to a routine. The order you do things at work is almost never the order you do things at home. It can be tough to mirror your schedule and processes once outside the office.
• Missing important calls or pings. Oops, my phone was on do not disturb and I missed a meeting! Or my boss slacked me and asked to prioritize something else and now it’s 4:45pm …
• Calling UberEats anyways. You thought you were saving money, didn’t you? Blam-o! $20 minimum and a $5 fee for the higher rated Thai place. Should’ve remembered to buy bread …
• Power naps. This could arguably could be in advantages … unless it accidentally lasts 45 minutes after your delivered double entree Thai lunch.
• Boredom. Those office convos? Kinda missing Susan’s cat stories, eh? How long can you go without seeing another living human being?
• Working slowly. Sometimes the office has an energy. Sometimes your home does not.
• No second monitor. How did I ever work without two giant screens looming above me??? All 74 of my tabs are essential!
• Iffy WiFi. At home or in a cafe, when the wifi start to spaz and you switch locations a couple of times but honestly spend more time parking and ordering a 6-shot mint mojito coffee with coconut milk and 16 grains of sugar than doing work.
• Waiting for an answer. You need to ask a super quick question, but it’ll impact how you do something for the next hour or even the rest of the day. And there’s no response. (Cue “The Waiting.” )

FOMO at Home. FOMO at Work.

The grass is always greener on the other side.

When you’re at work, nothing sounds more amazing than a toasty day indoors with your favorite blanket. When you’re at home, you reminisce about making jokes with your co-workers and wonder if the coffee machine made good coffee that day.

Either way, it’s important to choose the environment you’ll be most successful in. After all, each person has their own unique experience with remote working and finding what works and doesn’t work. One person’s productivity booster can be another’s distracting disaster. As you begin to work longer and build more experience, learning to focus in any surrounding is a valuable life skill, and will only help your professional career in the long run — especially as remote-first companies are gaining traction. If you’re still newer to the remote workforce , start by simply finding out where you do your best work and why.

To Thine Own Self Be True

Some important things to consider are what environment you stay focused in the longest, how long it takes you to get back on track, and how you best communicate. If you’re self-motivated, adhere to a routine well, and enjoy minimal distractions, then working from home is the right choice for you.

If you thrive on social interactions, feel inspired by seeing others working, and stay on track best if others see you, then working from the office is the way to go.

Occasionally there are projects that require more quiet time or more collaboration and resource planning . It’s important to be able to mix it up, depending on where you think you’ll be most productive!

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Pros and Cons of Work From Home Report

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There are times where some people will be prevented from working in a particular company because they could not leave the house. For example, a mom of two or more kids will really find it hard to manage the time of working while taking care of the needs of her children. This is the very reason why home sourcing or work-from-home schemes are becoming really popular. In fact, it was found out that in America alone, there is a continuously growing number of Americans, some 20 million right now, who do at least some of their work at home.

We’re not just talking about telecommuters who work for companies that give them the flexibility to work from home (Brooks, 2005). We’re also talking about a new, un-tethered workforce, made of contract workers, consultants, and freelancers. Thanks to cell phones and broadband, they have flexible schedules and their homes are also their offices.

But there are a number of advantages and disadvantages when one prefers to work from home. As for the pros or the advantages, the list includes (Bostick, 2004):

• Travel to and from work is eliminated. This produces a domino effect because, with the need to commute to and from work, the person himself can save money for gas, car maintenance, and other utilities. It can also save him time and energy as he does not need to wake earlier to prepare himself (take a bath, change clothes, etc.)
• No need to worry about dress codes. Most people who are now working from home have admitted that they normally work wearing their pajamas and they do not worry about what their boss or co-workers might think about their looks (as there is no one that can see him/her while working).
• Flexible time and work pace. People who work from home are normally given deadlines and it doesn’t matter when or how they do it, what is important is that they will be able to provide the needed output in the set schedule.
• Better health. People who work from home need not worry about pollution and other work hazards and stress. In fact, most of them revealed that they become healthier when they started their home sourcing jobs. They have more control of their time and of themselves. They have lesser worries.

Indeed, it can be summarized that those who can work this way and can afford to work this way often lead pretty comfortable lives. But there are still some negative sides to working from home. For many others, health insurance is expensive, retirement benefits non-existent, which can make life precarious (Brooks, 2005). Other disadvantages include:

• Lack of social interaction. When one works from home, he just normally work in front of his computer or through the phone. He will not have the chance to talk eye-to-eye with his colleagues. Working from home is almost synonymous with becoming isolated in one’s house.
• Presence of temptations and distractions. The house or home provides comfort. There are TVs, beds, radios, kids, and other family members which can be a form of distraction to work. One could not really focus when the TVs volume is too high. If the kids are asking for attention, it is just expected that the mom or the dad will be looking after them instead of finishing the work assigned.
• Irregular paycheck. Working from home does not count the number of hours one has worked. The pay is normally dependent on the output given. Hence, there are days when a paycheck can be good and there are days when it can be utterly disappointing.

There are pros and cons to every decision made. If one decides to work from home instead of the normal office job, then one has to face the disadvantages and disadvantages it may bring. But the beauty of this work from home is that it provides an additional option to aspiring workers. Now they can choose to work inside the comforts of their house or inside an office building that hired them.

Bostick, Fran. March 2004. “Several pros and cons to working from home”. Birmingham Business Journal.

Brooks, Anthony. 2005 “More Americans Choosing to Work from Home”. National Public Radio, Inc.

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IvyPanda. (2021, September 15). Pros and Cons of Work From Home. https://ivypanda.com/essays/pros-and-cons-of-work-from-home/

"Pros and Cons of Work From Home." IvyPanda , 15 Sept. 2021, ivypanda.com/essays/pros-and-cons-of-work-from-home/.

IvyPanda . (2021) 'Pros and Cons of Work From Home'. 15 September.

IvyPanda . 2021. "Pros and Cons of Work From Home." September 15, 2021. https://ivypanda.com/essays/pros-and-cons-of-work-from-home/.

1. IvyPanda . "Pros and Cons of Work From Home." September 15, 2021. https://ivypanda.com/essays/pros-and-cons-of-work-from-home/.

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Economics of working from home

Chair Michael Brennan spoke at a Committee for Economic Development of Australia (CEDA) panel discussion on 12 October 2021.

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• Economics of working from home (PDF - 101 Kb)

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Thanks for having me here to discuss our recent research on Working from Home .

Working from home is a highly topical issue, because so many have been forced to try it, and so much has been written – from differing perspectives – about whether it will or should continue.

It is also fascinating from an economic perspective for a number of reasons.

First, although our work emphasised the role of the ‘forced experiment’ brought about by COVID, it is important to remember that there is an underlying relative price effect that has made remote working more feasible and attractive.

As I never tire of reminding people, the central workplace is a relatively recent phenomenon in human history, and it was aided by the rapid falls in the real cost of moving people from place to place.

For much of the 20th century, transport became faster, cheaper and better. Efforts at futurism reflected that too – I have talked elsewhere about the US Postmaster General in the 1950s who predicted the advent of rocket mail.

George Jetson – that futuristic figure who first appeared in the 1960s – drove around in a space car in a space city. But he still drove to work.

It is a reminder that in our long-range predictions we so often get it wrong because we extrapolate along a single dimension – an observation made by Australian tech investor Rodney Brooks.

For the last three decades, moving people has not become much faster or much easier, particularly with congestion in major cities. Cars are cheaper, but the time cost of the commute is going up. Because of its service element, underlying public transport costs also tend to rise faster than overall inflation.

But the cost of computing, information technology and communications has plummeted.

In much of the debate over the pros and cons of remote work, we often forget that there is a fundamental technological shift – some underlying tectonic forces at work.

Second, it is interesting that despite this relative cost shift, the level of working from home hardly budged for the last 20 years – HILDA suggests 8 per cent of employees did it some of the time; we estimate that translated into about 2 per cent of hours worked; on Census day around 5 per cent of workers did not commute to work.

Those levels have stayed fairly constant since 2000.

And then the pandemic came along and changed everything, not least of which was the perception of working from home.

It seems to contradict the traditional micro-economic assumption of rational profit maximising firms and utility maximising households, all operating on the basis of known, fixed preferences and complete knowledge.

There shouldn’t be $100 bills on the sidewalk, and yet prior to 2020 there was clearly some untapped potential for more employees to work effectively from home and for employers to allow it. Why didn’t they?

Economists have made a few observations about this:

• Before the pandemic, the pay-offs for a firm to experiment with work from home were asymmetric: if it went well, others might copy. If it was a disaster, then that would be, well, disastrous. So it was safer not to.
• There is something akin to multiple equilibria when it comes to perceptions of working from home. Before COVID, work from home had a stigma – was it working from home, or shirking from home? In that world, industrious, productive employees might shy away from seeking remote work because of what it might signal about their work ethic. So the stigma can become self-reinforcing (a stable equilibrium). COVID removed the stigma by requiring large numbers to work from home irrespective of their relative work ethic.
• The assumption of profit maximisation with complete information has always been a very imperfect representation of how business decisions are made, particularly in the context of new technologies. This is an observation made by Armen Alchian in his 1950 classic Uncertainty, Evolution and Economic Theory.

The point about experimentation is that it leads to learning. The forced experiment of COVID was no exception. It appears that firms and workers learned two things:

• They learned something about where they sat in the productivity distribution of remote work across firm/workers pairings
• They learned that the mean of that distribution was a bit higher / better / more productive than they would have thought in 2019.

For many, that was a double whammy, creating a strong upside surprise.

Another reflection is that the forced experiment of the pandemic was just the beginning. As restrictions ease, we will observe a second wave of experimentation.

This time, instead of everyone doing the same thing, firms and workers will be trying out almost endless different and individualised approaches and learning from that experience. Fully remote, fully centralised and all the possible versions of the hybrid model.

The learning from this second experiment comes in two forms – the conscious learning that comes from firms identifying what works and doesn’t work for them, as well as the unconscious learning that happens at the level of the economy as a whole, as successful models are rewarded by survival and expansion while unsuccessful models fall by the wayside.

Despite the traditional economic affection for representative agent models (like the single representative firm or household – more on that later) the truth is that the economy relies on the sheer variety of models put forward in this second wave of experimentation. This variety facilitates the learning process – precisely because of the uncertainties and lack of knowledge faced by workers and firms.

The Productivity Commission is an evidence-based organisation, but to say much of interest about work from home one has to supplement evidence with judgement. The evidence just isn’t there yet, at least not in a definitive form.

We estimate that 35 per cent of jobs can be done from home. Few of those will be done exclusively from home, as they are in occupations and sectors that benefit from in person contact to stimulate collaboration and creativity.

So we sketched out a couple of scenarios: if all those who could work from home did so 2 days a week on average (1 day for part timers), we would see the number of hours worked from home rise to around 13 per cent.

Perhaps a more plausible assumption would be that only half of those who can work from home do so any of the time – again 2 days per week and 1 day for part timers. That would imply more like 7 per cent of hours worked from home.

It is still a big change – if for example the number of hours worked went from 2 per cent to 7 per cent and the number of people working from home some of the time rose to about 1 in 5.

It would represent a stark increase in a short space of time – much more rapid than other big changes like the rise of female participation or the rise of service sector employment, both of which have been dramatic but relatively gradual.

Will it hurt productivity?

Most of the public and media debate about the productivity of working from home is focused on the experience of individuals – often on the observation that some people are not particularly productive working at home.

By contrast, we were trying to answer a different question: namely, what happens at the economy wide level if an extra (say) 5, or even 10, percentage points of hours worked is worked from home?

In taking a sanguine view on that, in effect we are judging that the extra hours of remote work are coming disproportionately from the right-hand side of the distribution (those who do it better than average), or at worst a random draw. In other words, the extra hours worked from home are likely to be in those firms and by those workers and on those days where it can be done without diminution of productivity (and possibly with increased productivity).

And that can be true even if some individuals are less productive. The average effect is likely to be neutral or positive for a number of reasons: first, bosses have to agree to their employees working from home and they are unlikely to agree to a productivity-sapping arrangement. Also, the first day at home is likely to be more productive than the third, fourth or fifth (and an incremental 5 percentage points of remote work must come disproportionately from first days rather than fourth or fifth days). Finally, employees who want most to work from home have a very strong incentive to find employers and jobs where this can be done without loss of productivity and wages.

We are similarly positive about cities. Again, there is the tendency for some to extrapolate on a single dimension – more remote work means less work in the CBD, office vacancies will rise, cafes and restaurants will suffer, people will move further away from city centres and these trends will all become self-reinforcing.

In theory all those things are possible if the shock is big enough. Through history and across the world, cities have hollowed out or at least taken a long time to recover from a big shock.

Our judgement is that the shock here is not big enough. And for smaller shocks, the second-round effects tend to mitigate, rather than amplify, the initial impact. So, for example, if office vacancies did increase, we would expect rents to fall. That makes it more attractive for new businesses to locate centrally.

If people commute less often, and trade this off against a longer trip when they do, then it’s possible that more jobs concentrate in the CBD rather than less.

These things are all speculative, but the broad point is that there is significant adaptive capacity in our cities – they are complex systems and they adjust on multiple margins.

One policy implication is that the case for more flexible regulation of land use gets stronger.

Planning is naturally controversial because of strong community interest in issues of built form. But we have over-planned and over-regulated land use. In a world of significant uncertainty, we still have planning systems that purport to determine – at very high levels of resolution – what forms of economic activity can occur where.

Most jurisdictions in Australia have multiple different commercial and business zones for different types of activity.

But do this thought experiment. Imagine someone sitting in their home office, ordering some groceries online between meetings and then ordering some new office equipment for the home set-up.

All those land uses – office, residential, supermarkets and large format retail – have separate zonings in the physical world of land use planning. But surely in light of the dramatic changes we are seeing through remote work and online retail, we have to be open to new, novel combinations and co-locations of these things.

The boundary between retail and industrial zonings (e.g. fulfillment centres) is already becoming blurred – except in planning schemes, where retail and industrial zonings are quite distinct.

The workplace relations system is another policy framework that has been tested by remote work – not just because the regulation of hours of work is based on presence in a physical workplace. During the pandemic, the system showed itself to be quite adaptive in giving businesses and workers the flexibility to undertake work outside the ‘standard workday’ or require workers to perform different duties.

Many of the occupations and sectors most likely to work from home have less contact with the formal workplace relations (WR) system – they tend not to be award reliant, are paid well above statutory minima and often work flexible hours. Many of them would be on formal enterprise agreements, however.

The challenge for the WR system is that the preferences for, and feasibility of, working from home is quite individual, whereas the system is largely based on collective entitlements – the National Employment Standards (NES) enshrine mandatory community-wide minima; awards operate across industries and collective agreements across a business or worksite. It is very hard for any of these instruments to enshrine a substantive right to work from home because a collective, one-size-fits all entitlement is unlikely to be appropriate.

So firm policies and individual arrangements are most likely to be the mechanisms used to give effect to work from home. The NES and some awards do enshrine certain procedural entitlements – like the right to request remote work for certain classes of employees – but these stop short of substantive entitlements.

A contextual issue is that – in general – workers appear to desire the ability to work from home more than bosses want to extend it, largely because the main benefit is the commute avoided, and this is hard for the employer to monetise.

So employer representatives tend to voice some caution about work from home – both its productivity impact and the implications for areas like work health and safety. But many commentators also worry about work from home from an employee perspective – particularly the concern as to whether it might lead to more contracting and insecure work.

So if we imagine the WR system as being there, in part, to protect workers against harms, we first have to work out which harms matter more – not enough working from home or too much of it. The system can do both, but realistically only through procedural rules, like the right to request and the obligation on employers to consult about major workplace changes, rather than providing a substantive entitlement to work from home or to work from a central location.

Following on from the publication of our report a few weeks ago, we have also published on our website what we describe as a ‘simple model’ of working from home. We used this model as scaffolding – not so much to tell us ‘the answer’ but to help us think through how the bargain between employer and employee might work out and what variables would shape it.

I guess it’s simple in two ways: one, that it makes a lot of simplifying assumptions – a single representative firm, a single representative individual, both maximising profit and utility with well-defined production and utility functions. Both are price takers. The usual things.

Second, it doesn’t rely on overly complex mathematical methods. It’s a standard ‘constrained optimisation’.

But a quick look at the paper will show that it’s not that simple. There are complicated looking equations everywhere. The functional form and the first order conditions get quite long and complicated because we have to add new terms to try and capture what is going on when we add working from home to a more standard model.

To start from the beginning, a standard model of the household’s decision to work involves them trading off consumption (the fruits of paid work) and leisure – two goods which increase utility. The assumption is that no one would want to work except for the pay – the consumption it makes possible. So households choose a level of labour (to pay for consumption) and leisure.

To capture working from home, we add two types of labour – work in the office and work at home – into the utility function. Both forms of labour provide some benefit to the household: working from the office has the benefit of sociability; working from home provides some flexibility (e.g. to combine work with other domestic priorities).

This has two effects. One is that it means labour is now entering the utility function explicitly. It is no longer just the opposite of leisure. This implicitly brings in the notion that workers are getting some positive utility from work, over and above the consumption it makes possible. That is contrary to the standard economic assumption, but as an approximation of the real world it’s not completely crazy. Many people do derive considerable intrinsic benefit from various forms of labour.

But it does mean that when it comes time to put (hypothetical) parameters into the model, you have to make sure the utility from these two types of labour isn’t too large, or your household becomes a complete workaholic. It has to be the case that consumption and leisure still dominate the overall labour supply choice.

Nonetheless, what the model shows is that the ability to work from home does generally increase the household’s labour supply. Much of that is because of the avoidance of the commute, which provides more time for workers to allocate between leisure and work.

Then there is another subtlety, which is the second effect of bringing two types of labour into the utility function. It is that the two types of labour in the utility function have a degree of complementarity. It is as though workers prefer variety rather than working all the time in one setting. This effect is small, compared with the role of the commute (partly because of the illustrative parameter values we have assigned in our simulation) but it does mean that when work from home becomes an option, there is a small labour supply effect purely because workers get higher marginal utility from an extra hour of work now that they are splitting their work across two locations rather than one. So in our simulation, you notice there is a (small) positive labour supply effect even for a worker with a hypothetical zero commute.

Again, this seems like a quirk of the model but not entirely crazy. Isn’t there something in the attraction to the hybrid model that comes from having a change of scene – that would translate into working longer on my first day at home than I would on my fifth day in the office? And it is consistent with survey evidence that shows that most workers want a hybrid of working from home and the office.

As I mentioned before, the model is based on representative agents, maximising known objective functions and taking wages as given. And the model is static. We observe the change in behaviour once work from home becomes possible by comparing outcomes in one model specification to those in another. It is a comparative static exercise.

These seem like significant limitations, given we are in a world that is changing and adapting to a new way of working in the face of great uncertainty. But it can still yield insights into the forces that might shape the adjustment.

For example, one obvious point borne out in the model is that it involves two types of labour (at home and at the central location) but usually there will only be one wage. Assuming the employer cannot pay differential wages for different locations of work, they are constrained in their choice as to how much working from home they will want to offer – there is a unique point where the marginal product of labour is the same for each type of labour.

It is highly unlikely that this point will match the relative preference of the household. This creates a natural tension in the relationship. You can imagine three ways in which it might be resolved:

• The employer might find other ways of improving the relative attractiveness of working in the central location to shape worker preferences, such as through ways to foster greater social interaction in the office.
• Labour will reallocate over time, so that workers with a high preference for working from home seek out employers and workplaces where working from home is more productive.
• Even if workers stay put, there is incentive for them to demonstrate higher productivity when working at home, to shift their employer’s preferences into greater alignment with their own.

All of these things reflect the possible ways in which a market economy can adapt to a change like this. It reminds us that there are huge incentives to share the gains that this technology makes possible and to get better at using it over time. This is part of the reason we are cautiously positive about the overall impact of working from home across the economy as a whole.

Related publications

Working from home

18 Oct 2021

The paper considers how decisions about location of work will be made as firms and workers continue to learn how to organise their work, and what an increase in working from home might mean for workplace regulation, urban centres and wellbeing more generally.

The Daily MBA

Tips, Tools, and Techniques to be a Better Entrepreneur

Working from Home Pros and Cons [Infographic]

August 2, 2021 Jarie Bolander

After adjusting to remote work, many companies have decided to go full-remote, however, others are slowly returning to the office. Whether you like working from home or not, you might have to consider if it’s still right for you.

Not having to commute and saving money are only some of the benefits of working from home . But working remotely also has its downsides, like for example loneliness and potential security issues on your home network. Here are some pros and cons to consider before committing to remote work:

Pros:  

• Spend Less on Clothing

Working in an office often requires a dress code, clothing items like suits, ties and dresses can come at a high cost. Performing a job remotely, most of the time does not require you to wear formal clothing. Therefore, it can save you hundreds of dollars since you don’t have to regularly buy clothing and take them to laundry services. 

• Save on Commute 

Americans can spend from $2,000 to $5,000 on transportation alone each year. Since the average commute ranges from 5 to 13 miles each way, many trips to get gas is necessary to get to work. These expenses can accumulate over time, so working from home can save you a big amount of money. 

• Increased Productivity

From not only saving energy from commuting to work but also from spending time with loved ones, many workers have enjoyed working from home. As a matter of fact, 65% of workers have felt more productive due to working remotely.

• Costs to Start

You might want to create a home office spot that mimics the one in your office to help you focus on your work. In order to do that, you will need a good setup in order to be more productive. That can include getting an extra monitor, a new desk and chair, and those don’t come at a low cost. On top of that, security is another item that you’ll have to pay for and make sure you get the highest level you can afford.

• Can be lonely

Having to talk to your peers through chats and video calls might be a challenge. Communicating through the internet it’s not the same as being able to walk to someone’s desk at work. In addition to that, loneliness was reported as the biggest struggle of working from home, since workers don’t have enough face-to-face conversations with their coworkers.

• Likely to Overwork

Since your home also becomes your office, there’s an increased likelihood of overworking. Breaking the habit of checking your work email during off-duty hours while working remotely can be difficult. Many face work-related stress from working at home, and overworking is a common result of that.

If you need help deciding if working from home is right for you, Mint’s infographic below has a flowchart to help you figure it out, as well as more pros and cons of remote work:

Also published on Medium .

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