Productivity of remote work

According to research by Jose Maria Barrero and his co-authors, evidence suggests that fully remote work has a negative impact on productivity. Studies have found that communication and collaboration become more challenging when working remotely, leading to delays and reduced efficiency. The lack of immediate feedback and the need for more digital communication platforms contribute to these challenges. The negative productivity effect can range up to a significant 10%. However, firms can compensate for this productivity loss by saving on office space costs. Overall, while fully remote work may have some drawbacks, hybrid work, which combines remote and in-person aspects, seems to be a more attractive and productive option.