How do working arrangements impact employee satisfaction?

The Covid-19 pandemic introduced remote working – or the option to ‘work from home’ – to a number of disciplines, and for many people it’s stuck! The Office for National Statistics highlighted that in February 2022 more than 8 in 10 UK workers who had to work from home during the pandemic said they planned to continue working in a hybrid way. Since then, the proportion of hybrid working has risen from 13% in early February 2022 to 24% in May 2022, and similar trends have been observed in other countries around the world. Clearly, remote working is on the rise, but what does this mean for employee satisfaction?

Our New Ways of Working survey (conducted July ’22; n=130), found that 64% of respondents feel the option to work from home is now a necessity. However, there is significant variation between individuals' remote work set-ups. Our data showed that less than half (46%) of respondents have a private office space at home, 26% work in a shared living space and 13% use a desk in a bedroom at home.

(Above) Percentage of respondents with different remote work set-ups (n=130). 'Other' includes 'working from the sofa', 'working outside'.

Clearly, having a private office at home is a privilege rather than the norm. It is also not clear how many of the home offices currently in use will remain permanently: Zoopla reported that nearly 9 million bedrooms were ‘lost’ during the pandemic and adapted to better suit people's needs, but growing financial pressures are likely to force at least some to be reverted back.

Given this striking diversity in working arrangements, how does remote set-up impact employees' experiences? Unsurprisingly, we saw significantly more positive ratings of remote working among those with private office spaces compared to those with a desk in a bedroom – a staggering 9x more, in fact! There were also twice as many positive ratings among those with private office spaces compared to those with a desk in a shared living space.

(Above) Incidences of positive experiences of remote work in the differing remote work set-ups (n=130): 9 in 20 respondents report positively with private offices, 5 in 20 when a desk is set-up in a shared living space, and 1 in 20 when a desk is set-up in a bedroom.

Our statistical models show that the biggest dissimilarities between the remote set-ups appear to be in how purposeful respondents felt in their work while working remotely. Here we see that those with a private office set-up at home report feeling significantly more purposeful than other respondents who worked from other areas of the home or from workplaces outside of the home (i.e. coffee shops, co-working spaces etc).

(Above) Average scores (out of 8) for 'I feel purposeful in my work' while working remotely (n=95). We see a significantly larger score among those who have a private office set-up at home.

This is important, because we see across multiple reports and within our own datasets at Positive that purpose is strongly linked to productivity and performance, improved psychological wellbeing, and employee retention. Investing in methods that will create a sense of purpose across the workforce will therefore not only impact employees on an individual level, but will reap benefits for the whole organisation too. For example, 70% of employees state that they are more engaged in their role when they feel engaged in their company’s culture. If these employees feel that they belong and are motivated to engage, organisations will see a boost in job performance, among other metrics.

• Support employees to invest in their remote work set-up. Not everyone is lucky enough to have a private home office, but there are still things organisations can do to help their employees get the most from their remote work environment. Having a poor home working environment can quickly have a negative impact on both wellbeing and productivity, and it’s amazing what a difference basic equipment such as a laptop stand, a decent desk and an ergonomic chair can make! If space is an issue for your employees, consider offering passes to local co-working spaces. This may also help employees who feel they're not getting enough social interaction.
• See if there's a way you can make 'office perks' available to remote workers so that all your employees have equal access. These might be things like subsidised gym memberships, coffee subscriptions or even just a plant for remote workers' desks! But remember, 'you can’t yoga your way to success' (Martin Dewhurst; Senior Partner, McKinsey & Company); employees see straight through token gestures, so keep a focus on the bigger picture and make sure you're genuine and authentic in your communication.
• Remember, although many people do enjoy home working, it's not for everyone! Unfortunately, it may not be possible for your organisation to cater to everyone's preferences. Keep listening to your employees and be receptive to new ideas and suggestions for improvements. However, don't lose sight of those bigger factors such as company culture and purpose too. If your people feel aligned and like they belong, they're more likely to stick with you through the highs and the lows – regardless of working set-up.