Companies in Germany are expected to expand their work-from-home options, with little to no signs of downsizing.
The Leibniz Centre for European Economic Research (ZEW) has released a survey revealing that home office usage has remained high since the COVID-19 pandemic, with the majority of German companies planning to maintain or expand their remote work offerings over the next two years [2].
Key details from the ZEW survey of around 1,200 companies, including those from the manufacturing sector and the information industry, show that:
- Current Usage: Approximately 80% of firms in the information economy and around 50% in manufacturing currently allow employees to work from home at least one day per week. Larger companies are more likely to offer this option, with 98% in the information industries and 88% in manufacturing providing such flexibility [1].
- Expansion Plans: Around 29% of information economy firms and 34% of manufacturing firms with existing home office models plan to increase the number of employees working remotely. Additionally, firms traditionally expecting office presence show some intentions to introduce remote work, with 21% in the information economy and 9% in manufacturing planning to do so [1].
- Critical Attitudes: While companies acknowledge the advantages of home office, they are also critical of certain aspects, such as internal communication, teamwork, and innovation capability. However, this criticism does not seem to deter companies from committing to remote work offerings [1].
Daniel Erdsiek, the study director, noted that a decrease in home office usage is not expected and that companies plan to increase the number of employees working from home in the next two years [3]. He also mentioned that companies are critically examining certain aspects of working from home, including employee satisfaction, retention, and communication [3].
One advantage of hybrid models, according to Erdsiek, is their potential to facilitate the recruitment of specialists [3]. However, one-third of the companies surveyed fear negative effects on employee productivity, while around 20% see advantages for productivity [1]. Around 31% of companies also expect rather negative effects on employee retention [1].
In conclusion, the ZEW study projects increased home office prevalence as a lasting feature in the German work landscape for at least the next two years [4]. This trend is particularly strong in larger and digital-oriented companies, with the mode of work becoming more hybrid rather than reverting to pre-pandemic norms.
- As the Leibniz Centre for European Economic Research (ZEW) survey indicates, technology is playing a significant role in facilitating remote work, with 29% of information economy firms and 34% of manufacturing firms planning to expand their home office models.
- The increase in home office usage is not limited to digital industries alone; even conventional manufacturing firms, such as those in the sector, are adopting a more tech-driven, flexible approach to business, with 50% allowing employees to work remotely at least one day per week.
