A 2023 report from Jobstreet by SEEK found that working remotely boosts productivity and promotes inclusivity. It says that this flexible working arrangement lets employees choose how to balance their work and personal lives. Based on this study, you might think that working from home is the best choice. 

However, in updated data, the information shows that hybrid makes people work better. Turns out, it makes employees happier. More and more companies are doing this, which means they can hire better and more diverse people. This is because a lot of people are more interested in working with this type of arrangement. 

In an alternate report from Forbes, they cited that neither working from home nor a hybrid setup makes employees happy. They found that working from home, going into the office, or doing a mix of both doesn’t make much of a difference when it comes to finding a good work-life balance or avoiding getting burned out. 

33% of remote workers, 27% of hybrid workers, and 25% of onsite workers feel like they can keep their work and personal lives balanced. A lot of people feel burnt out: 24% of remote workers, 27% of hybrid workers, and 27% of onsite workers say they’re always or very often feeling this way. So, to sum it up,  working from home is great,  but it’s not much better than working somewhere else.

Given this contradicting information, how are we going to know which working setup is the most ideal or the best among the rest? Or a better question to ask is, does location really matter to be productive? 

On-site Working

For years the idea was clear that the structured environment of an office provided the ideal conditions for maximum productivity. It used to be thought that being in the same place was important for working together, being responsible, and staying focused. 

Offices help people work together better and talk to each other more. When you see each other in person, you can think of new ideas together, solve problems faster, and learn from each other. This makes it easier to understand each other and avoid mistakes. Being in the same place also makes everyone feel like they’re part of a team.

Also, offices can help you separate work from play, making it easier to have a good balance. Being around other people at work might help you feel less lonely and happier overall. For many people, going to the office can be faster and less stressful than working from home.

While these things definitely help, research shows that where you work isn’t the only thing that matters.

Remote Working

More and more studies are showing that working from home can actually make people more productive. A study from Stanford University found that people who worked from home were much better at their jobs than those who worked in an office. There are a few reasons for this: 1) People can save more money and spend more time working because they don’t have to travel to and from the office. 2) People have more control over their schedules, which can help them balance work and home life and reduce stress. 3) Homes are often quieter than open-plan offices, so people can focus more on their work.

Working from home has a lot of good things about it, but it’s important to think about individual needs and preferences to determine if it’s the right choice for employees.

Hybrid Working

While on-site and remote work offers many advantages, some employees and businesses find that a hybrid model strikes the perfect balance. This approach combines the best of both worlds: in-person collaboration and the flexibility of remote work.

With a hybrid work setup, employees can have more flexible schedules, so they don’t have to spend as much time traveling to and from work. This lets them balance their work and personal lives better, which can make them happier at their jobs and improve their mental health. Plus, they can save money on transportation and other household costs.

While for employers, Letting people work from home can be good for companies. When employees have a better balance between work and their personal lives, and fewer distractions, they might work harder. Offering this option can also help attract and keep talented workers, especially in competitive job markets. Plus, companies can save money by having fewer people in the office all the time. A more flexible work environment can make employees happier and more satisfied, which can create a positive and productive workplace.

It’s true that these things can make a difference, but is this the best factor to focus on to keep teams performing their best?

What can really make employees happy and productive?

Where people work definitely affects how they feel about their job. People who work from home all the time or sometimes are much happier than those who go into an office. Some people do prefer working in the office because it makes them feel more productive and disciplined. Other people find that hybrid work works best for them. 

However, good leaders and good business practices have a much bigger impact on how employees feel about their jobs.

Research conducted by Gallup and Workhuman shows that when companies focus on the people side of work culture, it makes a big difference in how employees feel, no matter if they work in an office or from home.

“Great performance is linked with better self-esteem, happiness, and satisfaction.” — Dr. Tracy Bower, PhD.

What can actually make your employees more driven and productive is not solely the fact that they work from home or have access to hybrid arrangements. What makes people happy at work is having a great company culture and feeling connected to their team. Here’s how you can tell if your team has that:

• Everyone here feels they can count on each other.
• Everyone feels that their work makes a real difference.
• Everyone feels that their employers really listen to them.
• Everyone feels like a close-knit team.
• Everyone is growing and improving.

To support employees to be productive, companies should focus on recognizing behaviors that match their values. 

For example, if an employee is only praised for working late or putting in extra hours, it might make people think that’s what they have to do to be successful, which can lead to them feeling burned out. Employers can help employees feel good by recognizing their achievements and actions outside of work. This shows that they see employees as people with lives outside of work and can include recognizing things like life events, volunteering, and other personal milestones. 

So, yes. Location does matter in productivity. It’ll vary per person, really. But, it’s not always easy to figure out how working arrangements affect employees’ well-being. It’s more important to create a supportive work environment for everyone, no matter where they work. From tools and processes to culture and leadership, you need to care about your employees for them to care about their work.