Companies that allow remote work have experienced revenue growth that’s four times faster than those that are more stringent about office attendance, a new survey shows, adding fuel to the debate over productivity and performance in today’s workplaces.
The analysis of 554 public companies that employ a collective 26.7 million people found that “fully flexible” firms which are either completely remote or allow employees to choose when they come to an office increased sales 21% between 2020 and 2022, on an industry-adjusted basis.
That compares with 5% growth for companies with hybrid or fully onsite workforces. The study, by flex-work advisor Scoop Technologies and Boston Consulting Group, included companies across 20 sectors, from technology to insurance.
Revenue growth was normalised against average industry growth rates so that employers in better-performing areas would not skew the findings.
Among the companies that did require at least some office attendance, those that came in a few days a week boosted sales at twice the rate of those in the office full-time, according to the survey. The better growth rates for more remote-friendly companies could be due to their ability to hire faster and from a wider geographic area, along with higher employee retention, according to Scoop co-founder and Chief Executive Officer Rob Sadow.