Perception of Productivity Influences Prevalence of Work-from-Home Offers // ZEW Study: Experiences with Work-from-Home Productivity

ZEW Study: Experiences with Work-from-Home Productivity

The expected work-from-home increase is calculated from the difference between firms' expected share of employees who work from home at least once a week after the pandemic and the share before the pandemic. Expected productivity is based on the expected productivity of work-from-home employees compared to their on-site peers. Firms in the control group were first asked about productivity after questions pertaining to their work-from-home plans and vice versa for the treatment group. The vertical lines portray 90% confidence intervals. Source: ZEW Business Survey in the Information Economy.

As demonstrated in a recently published study from ZEW Mannheim, managers' positive perceptions regarding work-from-home productivity increase the long-term availability of such offers. Firms which associate working from home with positive productivity outcomes plan to offer more work-from-home arrangements than firms with a more sceptical attitude. The results come from a survey of 800 firms in the information economy between 2020 and 2022.

The COVID-19 pandemic forced many employers and employees to experiment with work from home for the first time, and the majority were pleasantly surprised with the results, including productivity. "Our study shows a positive correlation between subjective perceptions regarding productivity effects in a work-from-home environment and long-term plans to institute work-from-home arrangements," explains Dr. Daniel Erdsiek, researcher in ZEW's "Digital Economy" Unit and co-author of the study. "Surveyed firms who view working from home as equally or even more productive than office work plan to expand such offerings markedly more than their peers."