A study by the Confederation of Indian Industry (CII) and the Faculty of Management Studies (FMS), Delhi, has explored the impact of work from home (WFH) on Indian businesses. The report, titled “Work-from-Home: Benefits and Costs: an Exploratory Study in the Indian Context,” highlights how Covid-19 led to a shift in work practices, with many companies adopting remote and hybrid work models.
Benefits for Companies
One of the key findings is that work from home can help companies reduce costs. Businesses save on office rental expenses and spend less on client meetings. Employees also benefit from lower commuting and accommodation costs, which has allowed companies to adjust their compensation structures.
Employee Advantages
For employees, working from home reduces commuting stress and increases energy levels. It is especially beneficial for parents and caregivers, as it allows more flexibility in managing their personal and professional lives. The study also noted a moderate increase in employee productivity.
Challenges of Remote Work
Despite its benefits, work from home comes with challenges. The study found that communication is less effective when working remotely, and teamwork can suffer. This can make it harder to build and maintain a strong organisational culture. Employees may struggle with separating their work and personal life, leading to increased stress. Many also lack a dedicated workspace at home, making it hard to work without distractions.
Supervision and Trust
The study mentioned that traditional ways of supervising, like attendance monitoring, are less effective with remote work. Instead, companies have shifted to performance-based monitoring. This change requires more trust between employers and employees to ensure that work is completed effectively.
Environmental Benefits
On a larger scale, remote work has led to a significant reduction in the carbon footprint of companies. This can help businesses meet their ESG (environment, social, and governance) goals.
While work from home offers many short-term benefits for both companies and employees, there are potential long-term drawbacks. These include challenges in building social and emotional connections, which are crucial for maintaining human capital.
