The studies found that overall productivity rates may not have significantly shifted in the remote work era
It has almost been four years since the COVID-19 pandemic spurred the remote work era, sending corporations scrambling to figure out how it affects their worker’s productivity. Two recent studies may have answers.
The Federal Reserve Bank of San Francisco’s report, examining 43 private sector industries, found no significant increase in productivity for remote-friendly occupations during the pandemic.
In contrast, a working paper from economists at the New York Fed, University of Virginia, and Harvard focused on an unnamed Fortune 500 company, revealing nuanced results.
- Proximity at work enhanced mentorship but temporarily decreased productivity.
- Remote work erased the mentorship gap but also led to fewer software programs produced by those who previously worked closely.
- The company shifted to hiring more trained workers during full remote work rather than spending time building their skills.
Notably, junior workers from close-knit teams had higher quit rates during the pandemic, possibly securing better jobs due to the early mentorship they got when working from the office.
These studies suggest businesses adapted to work changes, providing insight into why overall productivity rates may not have significantly shifted in the remote work era.