The Happiest Workers: Insights from Studies on Remote Work and Employee Satisfaction

Prior to the COVID-19 pandemic, remote work, then known as “telework” or “telecommute,” was already gaining traction. In 2016, 43% of people in the U.S. were working remotely at least part-time. However, the quarantines and lockdowns in 2020 rendered office work nearly impossible for millions worldwide. To adapt, many embraced working from home (WFH), relying on specialized technology to stay connected with colleagues and clients.

How can organizations enhance employee satisfaction and well-being through work models like work from anywhere and hybrid arrangements? Job satisfaction has been found to contribute to 27% of an individual’s overall happiness in life. To achieve this, organizations are exploring various work models, including work from anywhere (WFA) and hybrid arrangements that combine remote and in-person work. With the rise of remote work, there are new opportunities to enhance employee satisfaction and well-being.

Selecting the appropriate work structure can have a profound impact on an organization’s success. Prioritizing employee well-being boosts employee happiness. It also increases productivity and retention, leading to long-term success for the company.

Job Satisfaction

Feeling happy or satisfied with one’s job due to a positive evaluation or experiences is called job satisfaction.

Life Satisfaction and Work Happiness: The Strong Connection

Remote work is believed to provide employees with more freedom. They are privileged with increased flexibility and autonomy. Allowing employees to complete tasks on their own terms accommodates their personal life.

By prioritizing employee well-being, companies can create a more engaged and productive workforce. This benefits both the individual and the organization.

Commute Times and Its Negative Impact on Employee Satisfaction

Employees with longer commutes experience a considerable decrease in work happiness. Companies can enhance employee morale and satisfaction by promoting remote work, which not only eliminates the stress of commuting but also benefits the environment by reducing carbon emissions.

The Perks of Working from Anywhere: Work-Life Balance

When working from anywhere, one can easily do the following:

Spend lunch breaks with loved ones
Prepare fresh food if they wish
Take care of pets around
Avoid commute stress
Run short errands, such as quick grocery shopping, during downtime

These factors contribute to increased happiness at work, leading to better productivity and a healthier work-life balance. By adopting remote work, companies can foster a happier, more engaged, and more productive workforce.

Considering the Long-Term Impact: Remote Work Policies and Employee Happiness

Some companies are hesitant to adopt remote work policies. However, it is of utmost priority to consider its long-term effects on employee happiness, productivity, and sustainability.

For instance, a 2022 report reveals that remote employees are more optimistic (89%) than their on-premises coworkers (77%). Flexible workers are also more satisfied with their jobs (90%) compared to those that commute to the office (82%).

That’s not all. Workers now prioritize their personal well-being and life outside of work more than ever. As a result, more people do the following:

Seek remote work options
Assess a company’s ethics and values
Switch jobs if the company’s values don’t align with their own

In fact, 71% of workers have considered a major career move. Flexibility and work-life balance are crucial to both parents (74%) and non-parents (68%). Furthermore, they are advocating for pay equity. Admittedly, 76% say they’ll resign if they discover an unfair gender pay gap or a lack of diversity and inclusion policies.

Changing Attitudes: The Need for Employers to Adapt

A significant percentage of Americans are willing to switch jobs and accept pay cuts to avoid returning to the office. A shift in employee expectations is evident. Many are demanding more from their employers, like job security and a positive work culture.

For a workplace to be attractive, responding to these changing attitudes is essential. To acquire and keep exceptional staff, companies have to adapt and implement the right incentives.

Do you want to explore the fascinating connection between happy workers and productivity? Read “Work From Anywhere Impact on Job Satisfaction and Productivity.”

Rise of Remote Work

Pre-COVID-19 Remote Work Trends

Before the outbreak happened, 17% of the total U.S. workforce were already working from home for at least five days in a week. This trend was mainly fueled by the changing mindset and preferences of workers. Millennials especially prioritize the following:

Work-life balance
Adaptable work schedules
Relaxed work surroundings

Notably, the older generations are more accustomed to traditional office settings. Despite this, they have shown a growing interest in the benefits WFA can provide.

Impact of COVID-19 on Remote Work

The COVID-19 pandemic radically accelerated the remote work trend. Restrictions put in place forced many to seek alternative work arrangements. Telework became a viable solution, allowing employees to stay connected with colleagues and clients while working from home.

The pandemic has proven that productivity can be maintained or even improved with remote work. This shattered misconceptions about remote employees being less effective. 94% of employers surveyed by Mercer confirmed equal or higher productivity levels. It’s clear that the future of work will involve more flexibility.

As organizations look towards the future, 83% of respondents plan to implement more flexible work policies after the pandemic. This includes allowing employees to work from home. And they can adjust schedules to accommodate personal needs. Flexible work arrangements have been particularly beneficial for working parents, who balance between caregiving and professional responsibilities.

In order to sustain this level of flexibility, employers must focus on transforming:

People
Processes
Infrastructure

This is expected to maintain employee engagement and productivity. As a result, the next steps may involve rethinking talent acquisition, onboarding, and compensation strategies. Investing in technology and security is becoming more valuable as well.

Several companies have expanded their policies to continue a remote work setup. A few examples are Amazon, Capital One, Google, Microsoft, Salesforce, and Siemens. The pandemic has revealed the resilience of employees and the potential of remote work. Remote work is here to stay, leading to a new era of adaptability in the workforce.

If you want to keep up with the best practices for success, check out “The Rise of the Work from Anywhere Lifestyle.”

Benefits of Remote Work on Employee Satisfaction

More companies are recognizing the viability and advantages of WFA. Thus, an ever-growing number of individuals are demanding full-time remote work arrangements. The prevalence of telework continues to expand, sparking an intensified interest in studying the impact of this kind of setup.

It is vital to understand the benefits and challenges of remote work. Armed with this knowledge, companies can stay competitive in the fast-paced tech industry.

Increased Autonomy and Flexibility

When it comes to job seeking, there’s one thing that candidates value above all else: autonomy over when and where they work. In a recent survey by McKinsey, job hunters listed flexibility as the third-most-important factor. It was only next to greater pay and better career opportunities when considering a potential position.

Moreover, it’s not just a passing trend. Their prior research found that workplace flexibility was a top reason for those who left the workforce. The same set of people accepted new jobs during the COVID-19 pandemic.

Remote workers have the flexibility to work from various locations such as:

Their own homes
Shared workspaces
Libraries
Cafés

In this setup, employees are often not constrained to specific work schedules. The only requirement is a reliable high-speed internet connection.

Working remotely provides great opportunities for productivity as employees can perform at their best at any time. This leads to faster completion of tasks without noticing the hours pass by. Being given the liberty to choose how they wish to complete their tasks boosts employee efficiency and productivity.

What does this imply for employers? Essentially, offering flexible work arrangements can greatly affect their ability to attract and keep exceptional employees. Suppose all aspects of a job are comparable. The chance to work flexibly could be the deciding factor that sets it apart from another offer.

Valerie Lee, an experienced real estate, finance, and marketing professional, comments, “59% of workers say they would not work for a company that required them to come into a physical office five days per week. This aversion has already been evidenced in some companies attempting to force employees back into the office. Apple, for example, told employees that they were expected back into the office at least three days a week, a move which reportedly led to multiple resignations. Feeling ‘not just unheard, but at times actively ignored,’ employees responded with an open letter to management, laying out their vision for the future of work at the company and requesting that ‘remote and location-flexible work decisions … be as autonomous for a team to decide as are hiring decisions’ (emphasis added). Together, this data paints a picture of the future of work that is based on flexibility by way of autonomy. It also suggests that hybrid working strategies which approach the issue of flexibility by implementing granular policies on where and when to work are likely to be suboptimal or flat out rejected by the majority of workers.”

Reduction in Commuting Stress

Remote work offers increased work location flexibility, resulting in cost savings for employees. This includes reduced commute time, expenses, lunches, and even work attire.

According to Owl Labs:

25% of office employees stated that office politics disrupted their concentration while working; only 15% of remote workers experienced this issue.
34% of office workers reported being disrupted by colleagues; just 16% of remote workers reported the same.
28% were negatively affected by commuting to work, which also impacted their ability to work productively. In contrast, 18% of remote workers had this problem.

Joseph Martinez, a digitally savvy marketing expert, lists the benefits of remote work, “Going to work can be expensive. You’ve got travel costs, parking, lunch, coffee and snacks, birthday cakes, colleague presents, clothes for work… the list is endless. Some employers even give refreshment or clothing allowances as a benefit. Remote working saves on these expenses, which can add up to a substantial amount. This means more disposable income available for other things, which is always a good thing. Childcare costs can also be reduced with remote working, as parents can spend more time at home (although we don’t advise working with young children around!). As well as saving time on commuting, having a remote job means employees manage their own schedules. As long as the time you’re working doesn’t affect your colleagues and you meet deadlines then you can work when you wish. Working remotely also saves time traveling to and being in meetings as modern technology means teams can video call on the intranet.”

Better Work-Life Balance

The concept of work-life balance focuses on minimizing conflicts between work and personal life. This can be achieved by addressing key factors such as:

Reducing stress from work and home
Being involved in both work and personal activities
Having a strong support system of friends and family
Understanding how your job and family life affect each other

In line with this, the concept of person-environment fit theory is being considered. The theory posits that when a person’s situation and surroundings match their needs, there is less stress and more balance. In the context of remote work, this entails a strong alignment between the employee’s:

Expectations
Work experiences
Personal circumstances

Ensuring this fit can lead to improved performance, job satisfaction, and organizational behavior. An excellent work-life balance can drive people who work from home to be happier.

Jenny Pajova, a tax staff, reminds us, “A way to utilize remote work to improve work-life balance is to establish boundaries. Know when your critical working hours—the hours you find you are most productive—are and leverage this knowledge to become more efficient. Take small breaks just as you would if you were in the office and schedule any longer breaks or outside commitments. This information can be shared publicly with the Calendar feature on Microsoft Teams or privately through email, messages, or meetings. The importance here is that over-communication is needed as there is a decrease in social interaction when working remotely.”

Through proactive and intentional ways, employers can improve the employee experience. Read “The Importance of Employee Experience in a Remote Work Environment” for more details.

Strategies for Maximizing Employee Happiness in Remote Work

Evan Katz, a total compensation manager with a strong background in people analytics, summarizes, “In a survey conducted by the Society for Human Resource Management (SHRM), 69% of employees said that respectful treatment of all employees at all levels was the most important factor in their job satisfaction. A Gallup survey found that engaged employees are 21% more productive than those who are not engaged, and 37% less likely to experience absenteeism. A study by the University of Warwick found that happy employees are up to 12% more productive than unhappy employees. According to a Glassdoor survey, compensation and benefits are the most important factors in employee satisfaction, with 60% of employees saying they would prioritize salary over other job factors. A survey by TINYpulse found that employees who receive regular feedback from their managers are 3.5 times more likely to be engaged than those who do not. In a study by Robert Half, 89% of employees said that work-life balance was a key factor in their job satisfaction.”

Accelerate Digital Transformation

Develop flexible, end-to-end solutions.
Introduce guidelines and necessary tools for edge environments.
Guarantee appropriate access to data and protect it with cyber security.
Explore ways to enhance work procedures while ensuring organizational efficiency.

Communication and Collaboration

Introduce a range of communication tools, such as:

Video conferencing
Instant messaging
Project management platforms

Accommodate different communication styles and preferences as well.

Another suggestion is to organize frequent check-ins and virtual meetings to do the following:

Discuss project updates
Address concerns
Facilitate team bonding

These interactions can help maintain a strong sense of team cohesion and ensure that remote employees feel supported and engaged in their work.

Flexible Work Arrangements

Provide remote employees with the flexibility to manage their work schedules. Let them decide according to their personal needs and preferences. In this manner, a healthy balance between work and personal commitments can be maintained.

As explained earlier, a good fit between the worker and the job ultimately reduces stress and increases work happiness.

Clear Boundaries and Expectations

Set clear boundaries between work and personal life by:

Creating designated workspaces
Setting specific work hours
Communicating availability to colleagues and family members

This helps prevent burnout. It also ensures that employees can maintain focus and productivity during work hours.

Mental Health and Self-Care

Emphasize adequate self-care in the remote work environment.
Offer resources and guidance on self-care practices.
Provide access to mental health support services
Encourage regular breaks and time off to help employees manage stress and prevent burnout.

A Culture of Wellness

Create a company culture that prioritizes employee well-being by:

Organizing wellness programs
Offering health benefits
Fostering a supportive work environment

Companies can demonstrate a genuine commitment to employee wellness. This will contribute to the overall satisfaction and well-being of their remote workforce.

However, remote work is just not for everyone. To dig deeper on this issue, check out “What Are the Biggest Remote Work Problems?”

The Future of the Happiest Workers

According to Bailey and Kurland, remote work can follow one of two structures:

Full-time

Employees work outside the office for five or more days a week.

Part-time

Workers alternate between working at home and working at a central office location. Another term for this is the hybrid model.

The rise of hybrid work in 2022 is a notable trend. Employees in a hybrid setup increased from 42% in February to 49% in June. Towards the end of the year, this number is expected to continue climbing to 55%. It is reflective of a growing preference for flexible work arrangements among remote-capable employees. In fact, 60% of these people desire a long-term hybrid work arrangement. This indicates a shift away from fully remote work.

The number of individuals wishing for complete remote arrangements is predicted to go down. That is, in spite of 34% of workers preferring a permanent WFA setup.

Nevertheless, there may be an almost three-fold increase in the number of remote workers compared to the figures from 2019. This is specific for those involved in long-term, entirely remote work agreements. It is uncertain if the move to hybrid models will be enough to satisfy those who favor a WFA arrangement.

Looking ahead, fully on-site work is expected to become increasingly rare. Only two in 10 remote-capable employees currently work exclusively on-site. This number is expected to remain static. Only a similar number of remote workers are expected to become entirely on-site in the future.

The way people work is changing to become more flexible and adaptable. The rise of hybrid work arrangements is at the forefront of this transition.

“Hybrid” is no longer just a typical work schedule or an added employee benefit. It is a completely fresh approach to collaborating in the workplace.

Best-selling author, futurist, and keynote speaker on leadership, employee experience, and the future of work Jacob Morgan confirms, “You have to have the right mindset and pieces in place to maximize the power of hybrid work. Hybrid work is undoubtedly the future of work. But it doesn’t work without effort and the right tools.”

If you’ve struggled with either fully remote or traditional office arrangements, there’s no need to despair. We’ve got you covered with our informative article, “Five Types of Hybrid Work Models (And How to Implement).”

To Wrap Up

The paradigm shift towards remote work has illuminated new avenues for understanding employee satisfaction and well-being. Employers have the power to transform the workplace through a holistic approach to remote work. This includes implementing strategies for:

Flexibility
Boundaries
Communication
Support systems
Professional development
Mental health initiatives

The potential benefits are huge—a future where remote workers can succeed professionally and lead fulfilling lives. By adopting these approaches, we can redefine the nature of work. A satisfied and engaged remote workforce can unlock possibilities for the organization.

Let’s seize this opportunity to revolutionize the way we work and build a brighter future for all.