Society for Advancement of Management
SAM ADVANCED MANAGEMENT JOURNAL
Our Workforce and COVID-19: How Remote Working Plays a Role
Kent Willis, Dennis Emmett and Marjorie McInerney
DOI:
Citation: Willis, K., Emmett, D., and McInerney, M.,(2021). Our workforce and COVID-19: How remote working plays a role. SAM Advanced Management Journal, 86(3),9-19.
Abstract
This paper examines the role that remote working has played in the COVID-19 pandemic. Special attention is given to the pros and cons of remote working. Remote working is a crucial response to the “shut down” of most organizations. While it does provide an alternative way for work to be accomplished, there are drawbacks. In most cases, productivity has been maintained or increased. One of the limitations is stress due to working long hours. Emphasis here is placed on the changes managers can make. Managers will need to examine the various advantages and disadvantages of using remote working for their organizations. Remote working may not be suitable to all organizations.
Article
Introduction
Remote working employees within organizations and businesses has been around for some time. A remote working employee is working from a location, other than from a centralized office setting. The concept of remote working saw a large increase during the OPEC oil crisis and the rising fuel costs of the 1970’s (Hering 2015). With the shortage of gasoline, many companies allowed employees to work from remote locations. In 1973 a book written by Jack Niles provided influence for the remote workplace model (Pasini 2018). Another increase in remote working came as a result of the terrorist attacks of 9/11 (New York City Partnership and Chamber of Commerce, 2001). Neither the OPEC oil crisis nor the 911 terrorists attack caused a widespread increase in remote working among organizations or businesses within the U.S. such as been created by the COVID-19 pandemic of 2020.
Most recently, and mostly due to the COVID-19 pandemic, the model of remote working by employees has seen a widespread increase within multiple organizations and businesses. The COVID-19 pandemic forced the implementation of remote working on many organizations, businesses, and employees as a means of survival to maintain business continuity. As the pandemic created a widespread social lockdown, both globally and within the U.S., the only option to continue business as close to normal as possible was via remote work using technology as the platform for daily work functions by employees. The onset of this was forced change in business operations which came without warning. Organizations and businesses began to scramble to implement the new work arrangement, remote working. This impacted every phase of the economy, from corporations to educational institutions, health care facilities and multiple other business entities.
The remote working shift was lessened by the fact that most employees were somewhat savvy with technology. Technology savviness is most often assigned to generational differences among employees, as the younger employees are those who experienced and mastered technology usage at a younger age as opposed to the more seasoned employee who may not be as technology savvy (Vogels, 2019).
The aim of this paper is twofold. First, an examination of some of the pros and cons of remotely working, as it applies to the COVID-19 pandemic. The topics within the paper illustrate some of pros and cons from an organizational and managerial perspective, as well as the employee perspective. An additional aim of this paper is to examine changes in managerial behavior that are necessary to facilitate remote working long-term.
Cost and Savings
One major advantage of working remotely is a potential cost savings for organizations and businesses. Organizations and businesses that can utilize remote working have the advantage of reducing overhead expenses. The primary reduction in overhead expenses is most often related to a reduction in office space requirement. Torten et al. (2016) state the average office space savings can be as high as $8000 per employee, while Kelly (2017) placed the savings estimate in excess of $11,000 per employee. In addition, some companies reported a saving of $2 for every $1 spent on remote working.
The cost savings reported can be immense but may not apply in the COVID-19 pandemic. Office space was already available, either with a building or leased space. None of these can be changed quickly. For example, universities had classrooms, dormitories, cafeterias, etc. If these are not utilized, the cost of operating these facilities only diminishes slightly.
There is a cost savings to employees. If employees do not have to commute to work, then a saving is realized with lower commuting costs, vehicle maintenance and insurance, public transportation expenses, and clothing expenses to mention a few. Also, working at home may lessen the need for specific services such as laundry or dry-cleaning services or additional childcare needs, etc. (Pelta 2020; Picchi 2020).
There is a disadvantage here for either the company or employee. Not all employees will have suitable equipment or technology to handle the work or internet capabilities. There may be a need for upgrading internet service, new computer equipment, etc., all of which may become an expense for employer and employees. Using a university as an example, students located in more rural areas may have issues with internet access or cannot afford to have an adequate computer system at home for participating in required class work (Camera 2020). It is reported in a survey about half of the human resource managers surveyed state that poor technology and infrastructure are cited as the biggest problems in transitioning to a remote working environment (Renzulli, 2020). An additional cost related concern for some employees, especially those of the Millennial generation, is that of not regularly being seen within the office setting, which some feel can be detrimental to their promotion potential, in turn effecting their career advancement and their future earning potential (Gaille 2019).
Finally, there is a cost implication for society. With remotely working employees, people will not be utilizing the facilities near their workplaces. Restaurants and bars serving meals will experience a decrease in business; tax revenues will go down with less business; less gasoline consumption will mean lower fuel tax revenues, impacting road repairs and construction (Raines & Leathers 2001).
Many businesses during the early period of COVID-19 began seeking ways to reorganize operations in efforts to manage costs. Some companies and business management teams opted for a top-down approach to resize business operations. For leadership management this top-down approach is often based on information focusing on overall projections for the business, such as earnings forecasts or how well the company met benchmarks (Daoust and Simon (b) 2020). During times of crisis, such as COVID-19, the top-down approach by managers fails to gain insights from the employees on which activities are more valuable too achieving strategic goals and which ones can be managed from a different environment, such as remote working, or which activities can be ceased altogether (Daoust and Simon (a) 2020). This bottom-up approach can prove to be beneficial for managers. Regardless of the approach taken, managers can acquire accurate information to make decisions on how to control costs and provide savings for the business or company and they can seek input from employees.
Motivation
Pre-COVID-19 research suggests remote working can increase an employee’s job satisfaction, organizational commitment and help improve employee performance at their job tasks. Additionally, those employees who telecommuted may feel less exhaustion and work-related stress (Mayo Clinic Staff 2020). This same pre-COVID-19 motivational research content is relevant during the current COVID-19 time period and beyond, where managing and motivating remote employees requires the same basic approach as within a traditional office environment (6Q 2020). The COVID-19 pandemic provides opportunities for employers to perform better at what they already know is important in motivating employees. The pandemic can change the way employees work and the workplace setting, but it did nothing to change the way managers can motivate employees, these remain the same (Werder 2020).
Keeping remote working employees engaged during times of crisis is important for maintaining employee productivity and motivation and it is no surprise that motivation is at risk during crisis times (Bradford and Ryan 2020). For an employee, the enticement of working remotely may be exciting at first yet over time the appeal may wane resulting in a disengaged employee creating an undesirable attitude towards the work and in need of motivation (SHRM (a) 2020). Some employees, for various reasons, may not want to work remotely and find working from home or other remote location non-motivating, creating a negative attitude toward the work and the need for motivation by a manager (Zetlin 2020).
Managers can assist employee motivation by frequently ensuring that communication with employees is a priority and expectations of employees are understood (Duarte 2020). Recent research of employees who are remotely working during the pandemic crisis illustrates communication by managers is critical for helping employees stay motivated and engaged (SHRM (b) 2020; Groysberg and Abrahams 2020).
The COVID-19 pandemic created managerial and leadership challenges for employers and the need for employee motivation is as important for maintaining productivity during COVID as it is in the absence of COVID. Whether an employee is working remotely or in a centralized office location managerial motivational concepts remain applicable. The onset of the COVID-19 pandemic did not change motivational concepts, it changed where many employees perform their work.
Productivity
As COVID-19 began to impact U.S. business operations many employers shifted employees to remote working locations. Survey research shows that during the early stages of COVID (March-April 2020) and the impact it had on the U.S. businesses, that more than half of American workers were working from a remote location (Guyot and Sawhill 2020). Gallup Panel data reported similar results with employed adults, who were working remotely due to fear of COVID-19, increased from 31% in mid-March 2020 to 62% by mid-April 2020 (Hickman and Saad 2020).
From an employer’s perspective questioning a remote workers productivity is not unreasonable, especially in the case of COVID where many employees were shifting to remote working arrangements in a short period of time. In the pre-COVID work era remote employees have had a bad reputation and employers believed a remote working employee would face too many distractions and decrease effectiveness in turn, reducing the productivity of the employee (Peek 2020; Maurer 2020; Majercsik 2020). A remote working employee, especially one working from a residential home setting, may indeed face many constant distractions, such as children or household tasks needing completed throughout the course of a normal workday (Hearn 2020; Larson, Vroman, and Makarius 2020).
The impact of the pandemic allows employers and managers the opportunity to examine their workforce from a different perspective, that of flexibility. Employer flexibility while managing employees remotely can provide improvement in such areas as productivity, organizational costs savings, and increase employee engagement (SHRM (c) 2020). Research illustrates that companies utilizing remote-work programs in the pre-COVID era report good productivity and people who work remotely indicate they are more productive or as productivity at a remote location (Maurer 2020). A survey of 800 employers conducted by the HR consulting firm Mercer, during the COVID pandemic, reported 94% of employers surveyed said “their company productivity was actually the same (67%) or higher (27%) than it was before the pandemic, even though so many of their employees have been working remotely this year” (Sahadi 2020).
Other research by an International Boston Consulting Group survey of employees in the U.S., Germany, and India shows that during the first few months of the COVID crisis 75% of employees said they maintained or improved their perceived productivity on individual tasks. While 51% of employees working on collaborative tasks said they maintained or improved their productivity (Boston Consulting Group 2020). In contrast to this productivity research, other academic research on remote productivity during the COVID pandemic is mixed, with some research from both U.S and global businesses indicating a decline in productivity (Vigliarolo 2020). Other research suggests that if productivity increases or decreases, an employer’s success will depend on how managers approach those issues surrounding productivity for a remote worker (McGregor and Doshi 2020).
While there are six different generations living in the U.S, from a generational viewpoint the U.S. workforce consists of five generations of employees with members of each generation who are working. From oldest to youngest these generations include the Greatest generation who are in the 90 – 100-year-old age bracket and are sparse in the workforce, the Traditionalist, Baby Boomers, Gen Xers, Millennials (Gen Y), and Gen Z (purdueglobal 2021; Statista 2021). This composition of workers can affect the productivity of employees on either collaborative or individual tasks. There exist generational differences and challenges for managers, such as who among the generational workforce is more tech-savvy or which generation works better collaboratively or adapts better to the remote working situation (Bayern 2020). The generational composition of an employer’s workforce can translate into the productivity of a business’ operations. These generational issues may also apply to either the office setting or remote working employees (Schawbel (a) 2020; MatchCraft 2020).
There exist gender and personality differences when managing the remotely working employee. Feng and Savani (2020) show female employees assigned to remote working during COVID-19 report a lower work productivity and job satisfaction than men. The implications of the research indicates that employers with many female employees and having a long-term work from home policy, the employer can see a negative effect on the women’s perceived productivity. Another study reports that men indicate they were more productive working from home with children than women, and women’s careers can be impacted more than men when they worked from home (Dishman 2020).
Personality is yet another factor needing a manager’s attention as they seek to manage a remote team and its employees. Research shows that employee struggles with remote work often associate with an employee’s personality. Employee personality profiles, such as introvert vs, extrovert, sensing vs. intuitive, thinking vs. feeling, or judging vs. perceiving profile need considered by a manager as they manage a remote team or individual employee (Poepsel 2020; BasuMallick 2020; PsyML 2020).
Managers concerned about the productivity of remote employees can benefit by understanding more than the challenges of distractions for the employee. Research survey results from remote working employees shows the one most important concept for a leader or manager to possess is having trust in the employees to do the work needed to maintain business operations. Trust from a managerial perspective is important in having a remote employee stay engaged in the work processes (Hickman and Fredstorm 2018; Parker, Knight, and Keller 2020; Prowitt 2020). Gallup research on the variables, such as individualized stress or worry, dynamics of team member contributions, and employees duties, each influencing remote employees productivity and wellbeing, determine that a remote workers productivity depends on one role, the manager (Hickman 2020). A manager can play a critical role in ensuring that employee productivity does not decline when the employee is working from remote locations.
Teamwork and Isolation
As humans are social animals, there exists a need for human interaction (Semuels, 2020). Remote working employees may suffer from loneliness and isolation as the pandemic in the U.S continues and they are no longer able to interact face-to-face with co-workers, business stakeholders, or others in the outside world (Horch 2020; Vasel 2020).
According to Maslow’s Hierarchy of Needs theory if a person does not meet the psychological needs of safety and belongingness, where isolation and loneliness are included, they cannot operate within levels of self-actualization (Jalbert 2020). Self-actualization is based on an individual’s abilities to reach their potential; it is an individual process and will differ from person to person. Self -actualization needs are met as a person has the opportunity to self-develop and gain personal growth (Selva 2020). In the pre-COVID era a Gallup survey (Hickman 2019) reports there exists a concern that a remote worker’s engagement and productivity can suffer if loneliness and isolation are not kept in check. Using Maslow’s theoretical concept of self-actualization, a manager can help in designing approaches to assist the remote working employee in meeting their self-actualization needs to improve teamwork (Rowland 2020).
Employers have other ways they can help employees overcome feelings of isolation and assist teamwork. As an example, employers can leverage the use of telecommunication technologies to assist remote workers in meeting self-actualization needs, helping remote working employees cope with isolation and support team productivity. By an employer providing a remote working employee with the appropriate online technology it can influence the employee’s ability to complete a job task within a team and impact their sense of accomplishment as it relates to self-actualization (Rowland 2020).
As employees and employers adjust to the new normal of working in the COVID era, teams can focus and function as a team even when team members are in different locations. Teamwork can become more difficult when collaboration is affected by working through remote channels (Dixon 2020). Not knowing the length or extent of the COVID pandemic crisis, managers are confronted with learning how to support remote working teams. As remote workers productivity can have an increase, remain relatively the same, or can decrease during COVID, the dynamics of a remote working team transforming into the new normal provides employers the opportunity to create and begin to foster a new environment for how remote workers can collaborate and remain productive (Rizkallah 2020).
Managers have tools for ensuring the individual employee needs can be met as they manage teams during the COVID pandemic. Such tools include communication opportunity methods, person-to-person interaction opportunities to build and maintain the culture and continuing to recognize and celebrate team members accomplishments (Shepell 2020; Department of Homeland Security 2020). Managers may not always understand what is meaningful to an employee and by creating opportunities for building meaning can prove impactful for a team member employee (Vozza 2020). A manager can remember that teamwork involves collaboration and shared problem solving. For an employee to remain a productive member of a team a manager can pay attention to the individual, giving the employee’s needs high consideration (Penketh Group 2020).
Employee Retention
Retaining experienced employees, thus preventing employee turnover, is a concern for most organizations and businesses. Many organizations, regardless of such factors as the number employees or size of the customer base rely on professionally trained, qualified, and experienced individuals who bring an added competitive advantage to the organization or business (Obeidat, Tawalbeh, Masa’deh, & A’Sharqiyah, 2019; Ramona & Alexandra 2019). Multiple factors, such as job satisfaction and training, influence the retention of employees, especially those seasoned employees who bring experience and knowledge to the workforce (Singh 2019). Literature review of employee retention strategies and the costs incurred by lack of employee retention efforts indicates the need for these two issues to be a priority for an organization or business, both operationally and financially (Singh 2019; Conerly 2018; Cloutier, Felusial, Hill, & Pemberton-Jones 2015).
Before the COVID-19 pandemic became a global crisis the concern of employee retention was already a priority for most all organizations and businesses (Rakhra 2018; Kossivi, Xu, & Kalogra 2016). Employee retention is problematic for many employers and with the changing technology and the changing demographics of the workforce this makes employee retention a challenge for employers (Warner, 2018). Managers can make themselves aware of reasons why an employee may leave their job. Some reasons for an employee to leave may include such factors as employee dissatisfaction, better alternatives, planned change, or negative experiences. Other factors may include inability to work within a particular team setting, the role of the employee was not clarified or issues of trust (SHRM (c) 2020). Whatever the reason(s) an employee may leave, an employer can have managers who can manage in ways to help retain employees during COVID and in the post-COVID period (Hancock and Schaninger 2020).
Employee retention during COVID-19 and beyond provides opportunities for employers and managers to adjust their retention policies. Managers adaption efforts to COVID-19 remote working conditions can assist in retaining those vital employees. Managers adaptation ways can include such efforts as encouraging employee engagement, becoming more of a leader instead of a boss, or addressing employee uncertainties (Weghoeft 2020).
Employers can further assist in employee retention by providing support for those employees who may have been furloughed or laid-off during the beginning of the COVID crisis. Some employees classified as non-essential at the beginning of the pandemic crisis were laid-off or furloughed when business decreased or completely stopped. For employers to retain these employees and return them to work at the right time they should consider providing support to these employees until the COVID conditions allow for a return of these employees as business begins anew. Support can come in such ways as maintaining benefits for furloughed workers or providing a stimulus package to these workers (National Partnership for Women and Families 2020; Uzialko 2020). Managers are most likely to know the employees better than the employer, this makes the role of the manager important in employee retention efforts. A manager can serve a critical role in employee retention during the post-COVID period (Piletec 2020).
Employee Recruitment Strategy
If employers are hiring during the COVID-19 pandemic that process may have a different approach as face-to-face interviews and conversations switch to virtual formats. Effectively recruiting during COVID and into the post-COVID period is challenging for employers and adapting their recruitment process to ensure they have an adequate pipeline of candidates from which to select becomes critical in hiring the right person (Kuligowski 2020; PeopleFluent 2020).
Patterns of hiring will vary among companies and across industries. In the early stage of the COVID pandemic (March 2020) as businesses began to make the shift of employees to a remote working status, survey research showed that 42% of the 812 organizations surveyed had already frozen or reduced hiring, and another 28% were considering doing the same (PeopleFluent 2020). As many companies are experiencing slowdowns in hiring or downsizing as the pandemic wears on, others are actively recruiting for talent (Riccobono 2020). The variation in hiring practices, can be seen in the approach taken by two large U.S. companies. In April 2020 Google announced it would slow down hiring (Elias 2020), on the other hand as the pandemic has continued Amazon has added 175,000 new associates (aboutamazon 2020).
COVID-19 gives companies and businesses, and especially managers in charge of hiring new talent, the opportunity to rethink and rebuild their recruitment strategies. A survey of 500 staffing professionals reports that nearly 90% indicate they adjusted their hiring strategy during the pandemic (4 Corner Resources 2020). Technology advances, tools, and connectivity can make virtual recruiting a mainstay for organizational recruitment search processes. Companies using virtual recruitment methods are experiencing reduced costs by shortening the hiring process, gaining access to a larger talent pool through remote working opportunities, saving time, and being able to offer candidates flexibility in employment positions (CCI Consulting 2020; Wiles 2020; Schawbel (b) 2020; Hirecream.com 2020).
All managers, not just those in charge of hiring, can learn to embrace remote employee recruitment strategies. Managers can acknowledge the unique challenges involved with remote recruiting, hiring, and other factors, such as skills training or technology set up for a newly hired remote employee. Managers can utilize onboarding processes to ensure newly hired remote employees become acclimated to the culture of the organization. A manager can prepare for a larger number of remote applicants making the selection process more difficult (Schwantes 2020; ShieldGeo 2020; Marcinkowski 2020).
Recommendations
This paper identifies six factors that are critical for the success of organizations that continue using employees to remotely perform work. How management can respond to each of these factors is examined.
Cost and Savings
Cost and Savings – there is a potential cost savings to the organization by reducing the amount of office space, using less utilities, etc. The remote working employee will have added expense for office equipment, internet, supplies, additional utility expense, etc.
Management Response: Determine the cost of these items and develop a way to offset this cost, by providing a monthly allowance or providing the necessary equipment and supplies.
Motivation
Motivation – some individuals will be highly motivated and prefer to work remotely. As stated earlier, employees may be highly motivated in the beginning, but their motivation may decrease with time (SHRM (a) 2020).
Management Response: Find mechanisms for motivating employees, such as, maintaining communication, providing incentives, allowing for flexible schedules, etc. An example of a possible incentive would be providing lunch through a delivery service once a week.
Productivity
Productivity – a major concern is how much work is being performed. As seen earlier in this paper, research shows that some organizations show increases in productivity and others report decreases.
Management Response: One of the most important responsibilities of a manager is to set expectations. Making clear the expectations will provide employees with an understanding of what is required. This is probably more important when dealing with remote working employees. These expectations should be reasonable and understood by the employee. Expectations are easier to set for some jobs than others. In addition, managers can consider incentives for exceeding expectations. Likewise, there will need to be a well-understood policy for dealing with individuals not meeting expectations.
Teamwork and Isolation
Teamwork and Isolation – Humans are social animals, and human interaction is a necessary activity. As stated previously, safety and belongingness are necessary components of a human’s existence. Working remotely diminishes these factors. According to Maslow, these factors are important in the hierarchy of needs.
Management Response: Develop mechanisms that allow individuals to interact with each other as required to perform their work. Managers can devise projects that require personal interaction. Many individuals in today’s world are familiar with all types of social media, such as Facetime. Providing opportunities for individuals to interact is essential to the well-being of a workforce. In addition, there may be ways to have interaction that could be outside the normal work environment. Many companies sponsor golf teams, bowling teams, etc. Management can look for opportunities to develop social interaction via the internet.
Employee Retention
Employee Retention – Keeping a qualified workforce has always been a key concern for management. In these uncertain times, retention is even more important. Important factors regarding retention in the past are well-known and stated previously. During this period, these factors are heightened by the increase in uncertainty. Employees are not sure what the future holds. Will the business by able to survive? What kind of opportunities will be available in the future?
Management Response: Managers can become more of a leader than boss and address the employee uncertainties. Managers can provide assurance and help alleviate the fears of employees. Many employees were furloughed during this period. Some employers continued benefits, such as healthcare. As employees return to work, management might want to consider some compensation, such as a bonus. Finally, the individual manager should know their subordinates well. Managers can tailor responses to fit the individual needs of the employee.
Employee Recruitment Strategy
Employee Recruitment Strategy – Employers will need to employ new techniques for recruiting and selecting employees. Recruitment of employees is a critical concern for on-going viability of the organization. Organizations need to keep a well-qualified workforce. As an example of the change, recruiters visiting college campuses has been curtailed by the COVID19. Face-to-face interviews will not be possible.
Management Response: Management can find new ways to recruit talent. Some of this has already been accomplished with on-line recruiting websites. Management can now embrace this new way of operation. If work is being done remotely, then where the person lives is less important. If a college needs a professor in an academic field, then where that person resides is not important. For example, if a professor wanted to live in a rural environment, they could now be employed by a university in an urban setting. A physical presence is longer required. Management can embrace these changes and adapt.
Summary
The number of people remotely working has seen a tremendous surge during the recent pandemic. This has resulted in many changes in the way work is done. Some jobs, such as, cashiers in stores, nurses in hospitals, etc., cannot be done remotely. Other jobs may be done using remote locations, but at some risk. Some jobs use “sensitive” information. Many companies may not want this information available on the internet. Many people do work from home and will continue to work this way after the COVID-19 crisis is over.
When the COVID-19 crisis subsides, an organization will have to decide, based on its own set of circumstances, whether to bring employees back to a central location or have employees continue to work remotely. Is it possible to allow some employees to continue remotely and let others return? Administration will have to consider all these factors. The recommendations suggested here can be applied to any size organization and any organization that has work that can be done remotely (including education, corporate, data entry, etc.). Other type of organizations (retail, dining, building trades, etc.) are not capable of being done remotely.
For those organizations, that will continue with remote working employees, changes will need to be made to ensure their viability. If changes are not made, then these organizations may not be able to survive. This paper suggests some of the changes managers within organizations or businesses can utilize. Organizations will need to continually adapt to survive. This is even more important in these turbulent times.
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