Workers in occupations in the lowest wage bracket use basic cognitive skills and physical and manual skills 68 percent of the time, while in the middle wage bracket, use of these skills occupies 48 percent of time spent. Because of the pandemics impact on low-wage jobs, we now estimate that almost all growth in labor demand will occur in high-wage jobs. COVID-19 had little impact here as work in this arena requires low proximity and few interactions with others and takes place fully outdoors. The nationally representative survey of 10,332 U.S. adults (including 5,858 employed adults who have only one job or have multiple jobs but consider one to be their primary) was conducted Oct. 13-19, 2020, using the Centers American Trends Panel.3 Among the other key findings: A majority (64%) of those who are currently working from home all or most of the time say their workplace is currently closed or unavailable to them; 36% say they are choosing not to go to their workplace.4 When asked how they would feel about returning to their workplace if it were to reopen in the month following the survey, 64% say they would feel uncomfortable returning, with 31% saying they would feel very uncomfortable. Fully 62% of workers with a bachelors degree or more education say their work can be done from home. In our global survey of 800 senior executivesin July 2020, two-thirds said they were stepping up investment in automation and AI either somewhat or significantly. Some work in this arena migrated to e-commerce and other digital transactions, a behavioral change that is likely to stick. Whats next for remote work: An analysis of 2,000 tasks, 800 jobs, and nine countries, What 800 executives envision for the postpandemic workforce, COVID-19 and jobs: Monitoring the US impact on people and places. Among workers who are in the same job as they were before the coronavirus outbreak started, more than six-in-ten say they are as satisfied with their job now as they were before the pandemic and that theres been no change in their productivity or job security. According to recent data, remote work has increased 44% in the last five years. Among teleworkers who say they use video calling or online conferencing services often, most (63%) say they are fine with the amount of time they spend on these platforms; 37% say they are worn out by it. There is an inconvenient truth about modern employment: Many people hate their jobs. More and more countries are now giving it a shot. 2. In RingCentrals research report titled Is Remote Work Sustainable?, a focus on a connected culture leads to significant gains in employee productivity and well-being. Second, the increasing heterogeneity of the workforce has made a case for inclusion, i.e., belongingness and the opportunity for authenticity, that employees must perceive to reap the benefits of diversity. According to Joel Block of Bullseye Capital, writing in his 2021 trends report, consider that fewer people commuting has several important implications, both positive and negative, that will impact the economy. They're embracing trust, freedom and new leadership styles to ensure flexible working is . There are no significant differences across demographic groups. Across demographic groups, most who say their job can be done from home say they are currently teleworking all or most of the time. The computer-based office work arena includes offices of all sizes and administrative workspaces in hospitals, courts, and factories. Pew Research Center does not take policy positions. Many expected this to last only two weeks but there has been an increasing number of companies that have opted to stay remote, even while some are returning to the office. One is not necessarily better than the other. Having an adequate workspace at home has also been easy for most teleworkers 47% of those who are now working from home all or most of the time say this has been very easy, and 31% say its been somewhat easy. Governments could also consider extending benefits and protections to independent workers and to workers working to build their skills and knowledge mid-career. Workers who are working from home all or most of the time are also more likely than other workers to say that its now easier for them to balance work and family responsibilities and that they are more satisfied with their job than before the coronavirus outbreak. Teleworkers are relying heavily on video conferencing services to keep in touch with co-workers, and theres no evidence of widespread Zoom fatigue. Some 81% of employed adults who are working from home all or most of the time say they use video calling or online conferencing services like Zoom or Webex at least some of the time (59% use these often). Go behind the scenes and get more insights with Where the jobs are: An inside look at our new Future of Work research from our New at McKinsey blog. New roles In addition to how they work, the past two years have also seen employees rethink why they work, and what they most want to do with their careers and lives. In each case, workers younger than 50 are more likely than their older counterparts to say this has been difficult for them. Among those who either cannot do their work from home or can but are not working from home all of the time, about eight-in-ten say they are very (39%) or somewhat (42%) satisfied with the measures that have been put in place to protect them from being exposed to the coronavirus. In addition, 38% of new teleworkers say its easier now to balance work with family responsibilities (vs. 10% of teleworkers who worked from home before the coronavirus outbreak). This marks a significant shift for most of these workers, a majority of whom (62%) say that they rarely or never worked from home before the start of the coronavirus outbreak. We should strive to create a place where people flourish and feel fulfilled, and are not treated as programmable deadline-hitting workhorses. Feeling worn out is also more prevalent among those with a bachelors degree or higher (41%) than among those with less education (27%). This difference persists across genders, with both mothers and fathers more likely than their counterparts without children to say this has been difficult for them. While a 100% WFH workforce may not be for every company, the number of companies that will adapt to a percentage of their workforce going remote will have greater impact beyond the company, its employees and its customers. I expect to see improvement in all these measurements. Among teleworkers who are choosing not to work from their workplace, majorities say a preference for working from home (60%) and concerns about being exposed to the coronavirus (57%) are major reasons why they are currently working from home all or most of the time. Some 36% say they would feel at least somewhat comfortable working at their workplace if it were to reopen in the month following the survey. Smaller shares cite restrictions on when they can have access to their workplace (14%) or relocation (either permanent or temporary) to an area away from where they work (9%) as major reasons why they are currently working from home. Part of this experiment is to make sure thats the case, that the approach creates more motivation and not more stress, that employees can be more focused and more efficient really working, not just filling their time for four days in return for an extra day off. Rep. Mark Takano, D-Calif., has introduced legislation to reduce the standard work week to 32 hours. The gig economy coupled with the pandemic has changed both how people want to work and how companies think about getting work done. Then along came the Covid-19 pandemic, and that caused an instantaneous change. This analysis is based on 5,858 U.S. adults who are working part time or full time and who have only one job or have more than one job but consider one of them to be their primary job. Before the pandemic, we estimated that just 6 percent of workers would need to find jobs in higher wage occupations. In the first quarter of 2022, nearly 25% of job postings at the 50,000 largest companies in the U.S. and Canada were for permanently remote positions, according to the job listing service Ladders. In contrast, 83% of those with a high school diploma or less education and 71% of those with some college say that, for the most part, their job cannot be done from home. Office Buildings: If people dont have to come to an office, why lease office space? But thats why Im piloting this idea before committing to it permanently. I want to try and achieve the same results, and believe a four-day week will not only be good for my employees but also for my businesss bottom line. Corporations like ours need to adapt. 24 Aug 2020 | by Kristen Senz A new survey suggests that at least 16 percent of employees will remain at-home workers long after COVID-19 recedes, report researchers Christopher Stanton, Zoe Cullen, and Michael Luca. That could play well with constituents: Back in 2018, over half of Americans supported the idea. Jobs with the highest physical proximity are likely to be most disrupted, COVID-19 has accelerated three broad trends that may reshape work after the pandemic recedes, The mix of occupations may shift, with little job growth in low-wage occupations, As many as 25 percent more workers may need to switch occupations than before the pandemic, Companies and policymakers can help facilitate workforce transitions, grew more than tenfold between April and November 2020, Where the jobs are: An inside look at our new Future of Work research. Even after the pandemic is no longer forcing us to work from home, many people will continue to . "An immersive workspace is no . But by even the stricter definition, most remote workers are not eligible to be classified as telecommuters for the purposes of workers compensation. Over time, businesses would have realized that technology enables this capability. Increasingly, external workers are taking on critical roles . Lab technicians and pharmacists work in the indoor production work arena because those jobs require use of specialized equipment on-site but have little exposure to other people (Exhibit 1). Roughly eight-in-ten adults who are working from home all or most of the time (81%) say they use video calling or online conferencing services like Zoom or WebEx to keep in touch with co-workers, with 59% saying they often use these types of services. COVID-19 has, for the first time, elevated the importance of the physical dimension of work. According to the companys survey data, about 60 percent of workers felt just as productive and almost 34 percent of workers felt more productive. Change is often tough, but it can also be very rewarding. We just need to get the balance right. The decisions companies . However, it is unclear whether the relationship between remote . Many other workers were deemed essential and continued to work in hospitals and grocery stores, on garbage trucks and in warehouses, yet under new protocols to reduce the spread of the novel coronavirus. While the coronavirus outbreak has changed how Americans work in some ways, from increased telework to health concerns among those who cant or choose not to work from home, majorities of workers say they have seen little change in various aspects of their work lives compared with before the outbreak. Hiring -- where leaders search for top talent has changed. Theres a significant socioeconomic divide in the use of these types of services. Similarly, the Yerkes-Dodson Law, developed by two psychologists at the turn of the last century, suggests that there is an optimum level of arousal that improves our task performance. By Emma Goldberg. Both businesses and policymakers could collaborate to support workers migrating between occupations. Coffee shops, restaurants and local retailers dependent on the daily foot traffic will be hit hard. The COVID-19 pandemic has rapidly accelerated the shift towards remote work, which in turn has presented both challenges and opportunities for human resources (HR) professionals. Remote work may also put a dent in business travel as its extensive use of videoconferencing during the pandemic has ushered in a new acceptance of virtual meetings and other aspects of work. Spending Moves to the Suburbs: With fewer people downtown, money will start to be invested further away from the city. This is the case whether they have minor children or not. For example, those in upper-income families and those with a bachelors degree or more education groups that are among the most likely to be working from home all or most of the time are more likely than those with middle or lower incomes and those without a bachelors degree to say they have more flexibility to choose their hours and that they feel less connected to their co-workers. First, remote work has become the "new normal" for many employees. The social media scheduling company Buffer has already tried this experiment to huge success. (Keep in mind simple doesnt always mean easy.) By Laura Counts | September 21, 2021 As companies debate the impact of large-scale remote work, a new study of over 61,000 Microsoft employees found that working from home caused workers to become more siloed in how they communicate, engage in fewer real-time conversations, and spend fewer hours in meetings. Excluding factory jobs, restaurants, grocery stores, retail and other businesses that require people to be on location, many companies are finding the change is not as painful as they may have thought. Simone Anne Chelsea Pruitt, 31, has lived in California for nearly her entire life. Some 46% of those who rarely or never teleworked before the coronavirus outbreak say theyd want to work from home all or most of the time when the pandemic is over. Another 16% say they are doing so most of the time, while 12% say they are teleworking some of the time and 17% are rarely or never working from home. The abrupt closure of many offices and workplaces this past spring ushered in a new era of remote work for millions of employed Americans and may portend a significant shift in the way a large segment of the workforce operates in the future. In our post-COVID-19 research, we find not only that a larger share of workers will likely need to transition out of the bottom two wage brackets but also that roughly half of them overall will need new, more advanced skills to move to occupations one or even two wage brackets higher. The change was inevitable. E-commerce and other virtual transactions are booming. This results in being 20% less likely to acknowledge company values. People working from home will want larger homes with extra rooms for offices and will move further out where they can build bigger homes that are less expensive. Employees have a healthier work-life balance, are better rested and report being more motivated and creative at work. Fewer commuters means fewer cars on the road. 03:04 The UK is testing out 4-day work weeks. Companies and governments exhibited extraordinary flexibility and adaptability in responding to the pandemic with purpose and innovation that they might also harness to retool the workforce in ways that point to a brighter future of work. Scotland is looking at a country-wide shortened work week, and New Zealand, Sweden, Finland, Japan and Spain are all considering or piloting reduced hours among at least some businesses. The youngest workers are among the most likely to say a lack of motivation has been an impediment for them: 53% of those ages 18 to 29 say its been difficult for them to feel motivated to do their work. More than half of employed adults who say that their job responsibilities can mostly be done from home (54%) say that, if they had a choice, theyd want to work from home all or most of the time when the coronavirus outbreak is over. The tech workforce has been growing steadily and now accounts for 4% of total employment. See the methodology for more details. To guarantee that the same, consistent customer service is delivered, I plan to stagger the days that people are working and, if needed, to add to our headcount. (+1) 202-419-4372 | Media Inquiries. Among those who are not currently teleworking all of the time, roughly eight-in-ten say they have at least some in-person interaction with other people at their workplace, with 52% saying they interact with others a lot. A four-day work week also means that your team wont be using downtime at work looking at job ads on LinkedIn. Manny Medina, the chief executive of a Seattle-based artificial intelligence sales company, doesn't mind repeating himself. Roughly three-quarters of people using digital channels for the first time during the pandemic say they will continue using them when things return to normal, according to McKinsey Consumer Pulsesurveys conducted around the world. Workers ability to do their job from home varies considerably by industry.5For example, majorities in the information and technology sector (84%); banking, finance, accounting, real estate or insurance (84%); education (59%); and professional, scientific and technical services (59%) say their job can mostly be done from home. This compares with 50% of current teleworkers who rarely or never worked from home prior to the outbreak. After all, employment is not just about pure productivity. Depending on how you measure it, remote employees like these make up anywhere from 5.3 percent (those who typically work from home) to nearly two-thirds (who work remotely ever) of the US. Some 18% of employed adults who are currently teleworking all or most of the time say they dont have a workplace outside of their home (half of this group is self-employed). Among those working from home all or most of the time, those younger than 50 are significantly more likely than older workers to say its been difficult for them to be able to get their work done without interruptions (38% for workers ages 18 to 49 vs. 18% for workers 50 and older) and feel motivated to do their work (42% vs. 20%). Workers who are employed in the information technology industry are more likely than those in most other industries to rely on these platforms. More recently, a report by Goldman Sachs suggested that artificial intelligence (AI) could replace a . Leadership Talent Future of work June 21, 2021 COVID-19 has changed the workplace as we have known it. Hospital and medical office administrative staff fall into the computer-based office work arena, where more work can be done remotely. In the early 1900s, a six-day work week in America was common, allowing Sundays for employees to go to church and visit relatives. And these differences also persist when looking at workers with and without a bachelors degree who say that, for the most part, the responsibilities of their job cant be done from home. 2018, over half of Americans supported the idea. Connection is more than being technologically connected. Its good leadership and management working to keep employees motivated and feeling a part of the organization. The most disadvantaged workers may have the biggest job transitions ahead, in part because of their disproportionate employment in the arenas most affected by COVID-19. Mothers and fathers are about equally likely to say this has been difficult for them. This is the largest arena in advanced economies, accounting for roughly one-third of employment. Assessments of how some elements of work life have changed compared with before the coronavirus outbreak vary by work arrangements. Again, age matters: 49% of teleworkers younger than 50 say they use these types of platforms often compared with 30% of those 50 and older. Companies Hiring The most obvious change to affect the workforce is moving from the corporate office to the home office. And since the start of the COVID-19 pandemic, many companies have adopted some form of a remote workplace. Work in this arena requires only moderate physical proximity to others and a moderate number of human interactions. The pandemic sparked what seemed a massive . Here again, those who worked from home prior to the pandemic may have an edge over those who are newer to teleworking. Opinions expressed by Forbes Contributors are their own. In the engineering department, output increased across several teams -- in some cases doubling. In this research, we develop a novel way to quantify the proximity required in more than 800 occupations by grouping them into ten work arenas according to their proximity to coworkers and customers, the number of interpersonal interactions involved, and their on-site and indoor nature. Read more about the ATPs methodology. Workers with higher levels of income and educational attainment are the most likely to say the responsibilities of their job can be done from home. Prior to the pandemic, Pruitt had thought about moving, but it wasn't until she. Workers aren't so sure 03:42 People are revealing their salaries to this TikTok star. Going forward, more than half of displaced low-wage workers may need to shift to occupations in higher wage brackets and requiring different skills to remain employed. Now, she's headed to Alabama. Among workers who are in the same job as before the pandemic and who are currently working from home all or most of the time, those with at least a bachelors degree are more likely than those with some college or less education to say they now have more flexibility to choose when they put in their hours (46% vs. 28%, respectively) and that they feel less connected to their co-workers (62% vs. 45%). Work from home has become business as usual. The pandemic accelerated existing trends in remote work, e-commerce, and automation, with up to 25 percent more workers than previously estimated potentially needing to switch occupations. About six-in-ten workers with a bachelors degree or more education who say they are able to do their job from home (58%) say they are working from home all of the time, compared with 51% of those with less education. Younger teleworkers (ages 18 to 49) who use these platforms often are more likely than their older counterparts to say they feel worn out by the amount of time they spend on video calls (40% vs. 31%). In addition, Black and Hispanic workers are less likely than White workers to be very satisfied with the measures that their workplace has taken to protect them from being exposed to the coronavirus. About four-in-ten U.S. adults who are employed full time or part time (38%) say that, for the most part, the responsibilities of their job can be done from home; 62% say their job cannot be done from home. In addition, supervisors who use these platforms often are more likely than those who dont supervise others (but also use video platforms often) to say they feel worn out by the amount of time they spend on these types of calls (47% vs. 33%). In Europe and the United States, workers with less than a college degree, members of ethnic minority groups, and women are more likely to need to change occupations after COVID-19 than before. Two megatrends characterize the modern working world. For many, remote work appears to be a new normal. While large majorities of workers across age groups say they use video calling or online conferencing at least some of the time, workers ages 65 and older are the least likely to say they do this often. These age gaps persist after controlling for parental status. The on-site customer interaction arena includes frontline workers who interact with customers in retail stores, banks, and post offices, among other places. The trends accelerated by COVID-19 may spur greater changes in the mix of jobs within economies than we estimated before the pandemic. Customer service, however, did see a decline in output, as customers had to wait longer for responses. Consider that WFH is not new. There are plenty of articles and research out there to study and learn from. These assessments also vary to some extent across demographic groups, largely mirroring demographic divides in work arrangements. This seismic shift has changed where people live and work and, increasingly, how they travel. Theres no reason why the working week has to be five days. These two groups constitute 97% of all workers. Tellingly, Owl Labs' data also shows that millennials lead the way among those who prefer fully remote work, with 44%, compared to 41% of Generation X, 40% of Gen Z, and 38% of boomers. Theres a clear class divide between workers who can and cannot telework. This offers a different view of work than traditional sector definitions. References to college graduates or people with a college degree comprise those with a bachelors degree or more. Just as they have been proven wrong by remote working, I believe they will be proven wrong by the four-day work week. Some college includes those with an associate degree and those who attended college but did not obtain a degree. If we were to look for a silver lining, the pandemic gave many companies the opportunity to test the waters and discover new ways of doing business that may continue to work for themand their employeeslong into the future. 4 The pace of growth is well above the 0.4% average rise per year for total employment in the . Some companies are already planning to shift to flexible workspaces after positive experiences with remote work during the pandemic, a move that will reduce the overall space they need and bring fewer workers into offices each day. CNN Business looks back on the pandemic's impact on the global workforce and how things may have forever changed. (Getty Images) How we did this Terminology Nearly two years into the COVID-19 pandemic, roughly six-in-ten U.S. workers who say their jobs can mainly be done from home (59%) are working from home all or most of the time. About two-thirds (64%) of workers who worked from home at least some of the time before the pandemic and are doing so all or most of the time now say its been very easy for them to have the technologyand equipment they need to do their job. Only one-in-five say they worked from home all or most of the time. The analysis in this report is based on U.S. adults who are employed part time or full time and who say they have only one job or who have more than one job but consider one of them to be their primary job. Matthew Gallagher is the founder and CEO of Watch Gang, a watch club with over 2 million members and $100 million in sales. Many consumers discovered the convenience of e-commerce and other online activities during the pandemic. We consequently see sharp discontinuity between their impact on labor markets before and after the pandemic. On each of these, smaller shares note an improvement in the way things are going compared with before the coronavirus outbreak. Still, those with higher levels of educational attainment and upper incomes are the most likely to say they are working from home all of the time. Once implemented, we will track a number of metrics, such as employee and customer satisfaction and overall work completed. This report was edited by Stephanie Strom, a senior editor with the McKinsey Global Institute, and Peter Gumbel, MGI editorial director. About seven-in-ten say they have about as much job security (70%) and flexibility to choose when they put in their hours (68%) as they did pre-pandemic.7Still, some workers have noted a change in the way things are going for them at work. While these technologies have helped companies and organizations operate effectively during the pandemic, there has been widespread concern that video calls in particular are taking a toll on workers. Some 57% say they use instant messaging platforms such as Slack or Google Chat at least sometimes (43% use these often). Not even a year ago, working remotely was an opportunity for just a small percentage of the workforce.
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