Telework and productivity New survey evidence from managers and workers Timo Leidecker (OECD GFP) and Francesco Losma (Bocconi University, GFP) Joint with Chiara Criscuolo, Peter Gal, and Giuseppe Nicoletti supported by the TUAC, BIAC and ERRA networks and Steering Group members
Annual Conference of the Global Forum on Productivity 9 July 2021
Background • COVID-19 catalysed widespread use of telework
• What happens to productivity if telework becomes a `new normal’? • Recent OECD GFP work focuses on prospective impact of permanently widespread telework on firm productivity • Resources: • Framework: Policy note
• New data: Telework survey • GFP Webinar by Nick Bloom & discussion at GFP Week Bottom: Bloom (2020), “Working From Home: Past, Present, Future and some tips”
How does telework affect productivity? Main insights from the framework 1. Overall impact is a priori ambiguous 2. Worker satisfaction is key (+)
(+/-)
How does telework affect productivity? Main insights from the framework 1. Overall impact is a priori ambiguous 2. Worker satisfaction is key
Efficiency and telework at the worker-level
3. Worker-level efficiency depends on telework intensity 4. Firm-level efficiency additionally depends on coordination 5. In the long-term, impact on knowledge sharing is crucial
Worker satisfaction rises (+)
Worker satisfaction falls (-) Large impact on communication (-)
How does telework affect productivity? Online survey on experience and expectations Timely evidence from 23 countries from both: • Management • Employees or their representatives We thankfully acknowledge the support of BIAC, TUAC, GFP Steering Group members and ERRA for the conception and dissemination of the survey questionnaire!
I. Before COVID-19 Use
1.
II. During COVID-19
2. Overall Impact
Support
performance & assessment
Short-term adaptation
III. After COVID-19
3.
Expected costs & benefits
Long-term adaptation; Main obstacles
1. TELEWORK USE BEFORE AND DURING THE FIRST WAVE OF COVID-19
Large increases in telework during the initial wave of COVID-19, by sector 90%
Share of workforce
80%
70%
Before the crisis During the crisis
60% 50%
40% 30% 20% 10% 0% Construction
Manufacturing
Other private sector services
Public sector
Knowledge intensive services
2. EXPERIENCE DURING COVID-19
MANAGERS AND WORKERS
The experience of managers and workers during the initial wave of the COVID-19 pandemic 40%
Share of respondents
35%
Workers
Managers
30% 25%
20% 15% 10% 5% 0% Very negative
Somewhat negative
Neither good nor Somewhat positive bad
Very positive
What adaptive measures likely helped better firm performance according to managers? 𝑀𝑎𝑛𝑎𝑔𝑒𝑟𝐴𝑠𝑠𝑒𝑠𝑠𝑚𝑒𝑛𝑡𝑖𝑡 = 𝛽1𝑗 𝐴𝑑𝑎𝑝𝑡𝑖𝑣𝑒𝑀𝑒𝑎𝑠𝑢𝑟𝑒𝑠𝑖𝑗𝑡 + 𝛽2 𝑅𝑒𝑔𝑢𝑙𝑎𝑟𝑇𝑊𝑖𝑡−1 + 𝑆𝑀𝐸𝑖𝑡 + 𝐷𝑐 + 𝐷𝑠 𝑗
• Organising online meetings • Supporting purchase of IT and other equipment • Training of managers and workers • Refurbishing office space
We found this 𝛽2 coefficient positive and highly significant for managers
Impact on managerial experience
What adaptive measures likely helped better firm performance according to managers? 0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0 -0.1 -0.2 -0.3 Refurbishing office spaces
Provide training to managers and workers
Supporting purchase of IT and other office equipment
Regular online meetings
3. EXPECTATIONS FOR THE FUTURE
MANAGERS AND WORKERS
About 90% of workers want more telework in the future About 60% of managers expect more telework
Share of respondents
80% 70% 60%
50% 40% 30% 20% 10% 0% Don't know
Fewer Workers
No change Managers
Few more
Many more
Telework adoption will be more widespread after the pandemic according to managers 90%
Share of workforce
80% 70%
Regular teleworkers before the crisis Regular teleworkers during the crisis Regular teleworkers after the crisis
60% 50% 40% 30% 20% 10%
0% Manufacturing
Construction
Other private sector Knowledge services intensive services
Zooming in on ideal telework at the sectoral level according to managers 90%
Share of workforce
80% 70%
Five days per week Four days per week Three days per week
60%
Two days per week
50%
One day per week
40% 30% 20% 10%
0% Manufacturing
Construction
Other private sector Knowledge services intensive services
Workers and Managers agree on the “sweet spot” of telework 70%
Share of workforce
60% 50%
Five days per week Four days per week
40%
Three days per week 30%
Two days per week
One day per week
20%
Less than once per week
10% 0%
Workers
Managers
Advantages of telework according to managers 80%
75%
Share of managers
70% 65% 60%
55% 50% 45% All sectors Knowledge intensive services Manufacturing Other private sector services
40% 35% 30% Lower office space costs
Possible to employ workers living far away
Workers work more Workers productivity increases
… but also disadvantages
Share of managers
90% 80% 70% 60% All sectors Knowledge intensive services Manufacturing Other private sector services
50% 40% 30% Less creative and innovative working environment
Training is more difficult
Employees identify less Working as a team is with the firm more difficult
Workers find important advantages as well as disadvantages 95%
Share of workers
90% 85%
80% 75% 70% 65%
All sectors Knowledge intensive services Manufacturing Other private sector services Public sector
60% More free time Better able to work on tasks that require concentration Benefits BENEFITS
Lower travel expenses for commuting
Working from No clear Lack of social uncomfortable separation interactions spaces between work and private life Downsides DOWNSIDES
What HR and management measures should be taken to maximise benefits and minimize drawbacks? Q: What types of organizational changes and HR management practices would you find useful to introduce to better accommodate teleworking? Coordination of schedules
Provision of ICT equipment Training of managers Training of workers on ICT Training workers to work indepedently Investments in ICT at the company Space reorganisation
Workers
None
0%
10%
20%
30%
40%
Share of respondents
Managers
50%
60%
ICT infrastructure preventing more telework, to varying degrees by country 4
Average importance
3.5 3 2.5 2
1.5 1 0.5 0
Average importance * Countries with less than 50 respondents
SUMMARY & POLICIES
Summary of survey results 1. COVID-19 catalysed permanently more widespread telework
• Widespread telework was a new but positive experience for most managers and workers during COVID-19 • Most managers and workers expect and wish telework to stay • Most managers and workers consider intermediate levels of telework as ideal
2. Telework raises firm performance
• Managers expect telework to improve worker efficiency, job matching and enable cost reductions
3. Telework improves worker satisfaction
• Workers appreciate telework for the comfort of working from home and saving on the commute
4. Telework has potential (longterm) downsides that should be addressed
• Managers worry about knowledge flows, team work and identification with the firm • Workers worry about lack of isolation, blurring between working and private life and inappropriate home office space • There is perceived need for coordination, investments, and training
Policies to raise the gains from telework Example policies to “enable, empower and protect” Infrastructure: ICT, childcare
Enable Culture: Corporate culture, digital public services Skills: Online training, lifelong learning
Empower Organisation: Management training Rights: Right to disconnect
Protect Regulation: Health insurance, safety regulation
Thank you OE.CD/GFP Productivity@OECD.org