Our experience during COVID-19 and what it means for the future of work - NSW Remote Working Insights - NSW Treasury
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NSW Remote Working Insights Our experience during COVID-19 and what it means for the future of work NSW Innovation and Productivity Council November 2020
About the NSW Innovation
and Productivity Council
The NSW Innovation and Productivity Acknowledgement Contact
Council (IPC) was established by the
Innovation and Productivity Council Act
of Country The Council welcomes feedback
1996. It advises the NSW Government on NSW Treasury acknowledges that and inquiries regarding publications,
priorities for innovation-led economic Aboriginal and Torres Strait Islander website and media. To contact the
development and productivity. peoples are the First Peoples and Council secretariat:
Traditional Custodians of Australia, Phone: +61 2 9338 6600
Council members are leaders from
and thank them for their custodianship Email: ipc.secretariat@treasury.nsw.gov.au
industry, education and research
of Country—land, seas and skies.
sectors. Members are appointed for Physical mail:
We acknowledge the diversity of
three-year terms. The current Council NSW Innovation and Productivity
First Nations cultures, histories and
was appointed in 2020 and is chaired by Council Secretariat
peoples, recognise their enduring
Neville Stevens AO, a former Secretary GPO Box 5477
connection to our State, and we pay
of the Australian Department of Sydney NSW 2001
our deepest respects to Elders past,
Industry and the Australian Department Australia
present and emerging.
of Communications, Information
Technology and the Arts.
Copyright
The NSW Chief Scientist & Engineer,
Professor Hugh Durrant-Whyte, and the © Government of New South Wales 2020
NSW Chief Economist, Stephen Walters,
are special advisors to the Council. Attributions
NSW Innovation and Productivity This work should be attributed
Council publications are independent as follows:
reports and do not constitute NSW
Government policy. This is consistent Source: NSW Innovation and Productivity
with the role of the Council and its Council 2020, NSW Remote Working
object under the Innovation and Insights: Our experience during COVID-19
Productivity Council Act 1996 (NSW). and what it means for the future of work,
Council Research Paper, Sydney, 2020.
NSW Remote Working Insights
Minister’s Message
To combat the spread of COVID-19, The first NSW Innovation and Productivity The report brings together for the
Council NSW Remote Working Insights first time:
in March 2020 the NSW Government report comes at a pivotal time for the
• a new artificial intelligence-driven
directed non-essential workers to State. In the future, those looking back
analysis of more than 20,000 different
at 2020 may point out it was the year
work from home. With so many everything changed, for better and for
tasks in the economy to assess New
South Wales’ potential for remote work,
logging on from home for the first worse. Without the benefit of hindsight,
and
Governments need to grasp the changes
time, the forced experiment in happening in real time. • results from a new NSW Innovation and
Productivity Council survey of 1,500
remote work was always going to Many are asking if remote work is a new workers in August and September 2020.
be a challenge. normal. This report provides timely data
This paper provides a great basis for
on NSW workers’ experience of and
attitudes to remote work and assesses future discussions around remote work
Yet NSW businesses adapted what the future holds. and I invite the NSW community to join
remarkably well to this new way of In making us happier and more
the ongoing conversation.
working. Many organisations have productive, more flexibility to work
remotely could be one of the positives to
discovered that their employees stem from the COVID-19 crisis. But only
were quick to embrace technology if we play our cards right. This report can
be used as a foundation to aid the NSW
to keep their businesses functioning. Government, businesses and residents in The Hon. Stuart Ayres MP
tackling the challenges of remote work Minister for Jobs, Investment, Tourism
to fully realise the benefits. and Western Sydney
NSW Innovation and Productivity Council
Project Champion’s Foreword
The world works in unusual ways. Seemingly unrelated
phenomena can be linked. The COVID-19 pandemic has had
a devastating impact on many, yet it may have catalysed a
big change in the way (and the where) we work. The recent
shift to remote working was not a question of technology.
Many of us had the tech know-how to remote work, yet prior
to 2020 few did. Cultural and social barriers stood in the
way. It has taken a highly infectious virus to tear them down.
COVID-19 pushed rates of remote spent with the kids or surfing. Also, This is the first report of the NSW
working to never-before-seen levels. in the times that we have to focus to Innovation and Productivity Council's
As the skyscrapers that dot Sydney’s complete an individual task colleagues NSW Remote Working Insights research
iconic skyline stood empty, journalists can be a distraction. Firms also stand series, launched to unearth and unpack
speculated that the temporary experiment to benefit in not having to fork out as the ongoing shift toward remote work.
in remote work may transition into a much on office space and overheads. In this report we take a deep dive into
permanent end to the cubicle farm. New South Wales’ workforce to assess
Remote working shows promise in
For many the lockdown experiment has who can remote work and to what
making us happier and more productive,
removed institutional barriers to remote extent. We also asked 1,500 remote
but it doesn’t always go smoothly. It can
work, and shown we can have productive workers about their experiences.
be hard bouncing ideas off one another
interactions with those on the other I hope you enjoy reading it.
and collaborating. And spontaneous
side of the city, country or even world.
run-ins at work can lead to new ideas
Many have continued to work remotely and partnerships which underpin our
even after the lifting of restrictions. And innovation economy. And who doesn’t
why wouldn’t they? Commuting can be a miss the office chats? And while many
big a source of stress and can steal away of us can work remotely, not everyone Steve Sammartino
our precious time. Time that could be is lucky enough to be able to do this. Project Champion
Contents
01.
EXECUTIVE SUMMARY 1
02.
REMOTE WORKING POTENTIAL 4
Remote working: temporary experiment
or permanent shift? 5
New South Wales has long had remote
working potential 7
04.
THE FUTURE OF WORK 28
A hybrid model could overcome the greatest
03.
THE LOCKDOWN EXPERIENCE 11
barriers to remote work
A more flexible future could let workers find
29
their right remote work mix 32
COVID-19 has transformed the remote work norm 12
APPENDICES 33
10 ways remote work could change
New South Wales 14 A The NSW Innovation and Productivity
Council’s Remote Working Survey 34
NSW workers save more than an hour a day
working remotely 16 B How we estimate changes across the
NSW workforce 38
NSW workers find remote working
more productive 20 C How we estimate New South Wales’
remote work potential 39
Much work must still be done on-site 23
D How we estimate changes in labour
Collaboration and knowledge-sharing productivity due to remote working 40
create challenges 24
Social connection is a key challenge 26 REFERENCES AND CITATIONS 41
01.
We’re measuring the results
Executive
Summary
We have already saved time
of a huge remote working and increased productivity
experiment by working remotely
Remote working is a rapidly emerging Amid the storm of COVID-19, the
aspect of workforce adaptation and the Council’s work contains some good
future of work. By May 2020, in response news. If done in a balanced way, remote
to the COVID-19 pandemic, 46 per cent working can actually strengthen the
of NSW workers were working from NSW economy and improve our lives.
home. Among other things, this has
Those of us who can work remotely
been a huge experiment in our ability
report being more productive when
to work remotely.
we do—by an average of 13 per cent.
To evaluate that experiment, the NSW
That is translating into gains for workers
Innovation and Productivity Council is
as well as for employers. Without the
employing a unique combination of tools:
need to prepare and commute, the
data from artificial intelligence platform
average NSW remote worker has an
Faethm, and our own survey of 1,500
extra 1 hour and 17 minutes per day.
NSW remote workers. We designed our
The average worker puts a portion of
survey with expert advice from the Data
that time back into work. But we use
and Statistical Analysis team in the NSW
most of it as personal and family time.
Department of Premier and Cabinet.
Working remotely two days a week
The Council’s report provides insights saves the average worker the equivalent
into the current situation and is the of 3.3 weeks’ leave a year, and $860 a
first in a series of publications that will year in travel costs.
examine changes in working patterns
and arrangements because of COVID-19.
It will provide evidence and insights
into longer-term implications to support
NSW public policy development and
workforce planning into the future.
1
Executive Summary
FIGURE: MOST WORKERS REPORT HIGHER PRODUCTIVITY FIGURE: THE TIME AND MONEY REMOTE WORKERS SAVE
WHEN WORKING REMOTELY
Productivity reported when working remotely, compared
to working at an employer’s workplace
60
50
53%
2
days of remote
123
extra hours
3.3
weeks of leave
$ 860
savings in travel
Per cent of NSW remote workers
work per week per year per year costs per year
40
Note: Weeks of additional leave assumes a 37-hour work week. Travel costs savings are calculated using adult Opal 10–20 km
30
peak time train fare. Source: IPC Remote Working Survey 2020; Transport NSW; IPC calculations
29%
20
By reducing the traffic on our roads Our survey also confirms that remote
18% and public transport networks, remote working creates new challenges:
10 work can even benefit workers who do
• Some tasks cannot be done remotely—
not work remotely.
for instance, most nurses’ and
0 builders’ tasks.
The challenges and • Some of us find remote work socially
opportunities ahead isolating—some find it lonely.
Most of us are already adapting to more • Some of us have difficulties
Less As More remote work, with many of us liking collaborating with other people online.
productive productive productive
it. The Council’s survey found we rank • On-the-job learning is more challenging.
‘better work-life balance’ as the single
• Benefits from remote working may
Source: IPC Remote Working Survey 2020 best aspect of remote work.
not be equally shared. Industries like
bricks and mortar retail and hospitality
require physical presence. Here, some
service workers will be unable to
benefit directly from remote working—
although they will still benefit from a
wider economic resurgence.
NSW Remote Working Insights 2
Executive Summary
The Council has identified four ways COVID-19 forced us to work remotely • The majority of us can work remotely
in which remote working may change wherever possible. In the future, however, some of the time.
New South Wales: NSW workers want more of a balance. • We can gather on-site for
Most of those who can work remotely collaboration, team-building, and
• Productivity could rise, strengthening
want to do it for two to three days ‘non-remoteable’ tasks.
economic growth, state finances, and
per week. We like remote work, but we
living standards. The challenge, once COVID-19 has
also value working together in person.
• Sydney’s central business district passed, is this: to find a flexible mix of
(CBD) will remain the state’s This ‘hybrid model’ takes remote work’s workspaces, policies and practices that
employment hub, but offices could best aspects, and combines them with caters to these preferences. This is a
be reborn as spaces for collaboration the benefits of gathering together in solvable challenge for NSW employers,
and innovation. one location. workers and policymakers.
• Congestion may ease with less
pressure on our roads and rail system
and better CBD access.
• There could be impacts on health
and inequality, for better or, in some
cases, worse. FIGURE: REMOTE WORK WILL DROP BUT IS LIKELY TO STAY ABOVE PRE-PANDEMIC LEVELS
43%
The best of both worlds: 40
a ‘hybrid model’ of
remote work
Per cent of total work done remtoely
30%
While COVID-19 pushed remote working 30
to an extreme, working remotely is rarely
an all-or-nothing choice. The Council’s
work shows that most of us can work
20
some of the time from home and some 18%
of the time on-site. Only 5 per cent of
us can perform all our tasks remotely, Remote work
but fully half of us can work remotely 10 could remain
for at least two days a week. 69% above
pre-pandemic
levels
0
2019 During COVID-19 Preference
(without COVID)
Source: IPC Remote Working Survey 2020; IPC analysis
NSW Remote Working Insights 3
02. Remote Working Potential
Remote working: temporary
experiment or permanent shift?
Many workers and businesses have been forced to try remote
work for the first time. They have encountered both benefits
and challenges.
67%
In March 2020, Australian governments Commentators have speculated that
introduced emergency restrictions to what began as a temporary experiment
slow the spread of COVID-19. The NSW might turn into a permanent revolution
Government directed non-essential NSW (Boddy, 2020; Nixey, 2020; Thompson,
workers to work from home. Almost 2020; World Economic Forum, 2020).
overnight, the rate of remote work rose Early surveys support this speculation:
to record highs—46 per cent or more
• 67 per cent of Australians polled in Expect to work
were working remotely in late April
and early May.
April expected to work from home from home more
more after the crisis.
after the crisis
• So did 76 per cent of managers
in another poll and 83 per cent of
businesses in a City of Sydney survey
(Committee for Sydney, 2020; NBN,
2020; Swinburne University, 2020).
Other commentators have urged caution.
They argue that old patterns will reassert
themselves after the crisis, and that the
‘death of the office’ is much exaggerated
(Cummins, 2020).
NSW Remote Working Insights 5Remote working: temporary experiment or permanent shift?
NSW policymakers need • It could substantially shift infrastructure This report explores the
demand and population densities.
quality data on the shift Permanent increases in remote working
new landscape
to remote working could reduce and reshape demand across Remote working is a hot topic. New surveys,
transport networks, freeing up capacity modelling, and studies are released almost
A permanent increase in remote work is
and reducing congestion. daily. With this report, we take stock of the
likely to change many aspects of social
and economic life in New South Wales. • The social implications of remote working growing literature and provide a balanced
need to be examined carefully. Remote analysis specific to the NSW economy.
• Remote working could lift the state’s This is the Council’s first report in a series
working can impact mental health and
productivity. Not all NSW workers can that will examine longer-term changes in
inequality. Workers who cannot work
work remotely, but those who can report working patterns and arrangements in a
remotely will not benefit as much as
being 13 per cent more productive. with-COVID world, to support public policy
those who can.
• More remote working could change how development and workforce planning into
If remote working is here to stay, the future.
NSW businesses operate. For instance,
policymakers can help NSW workers and
it could soften demand for CBD office This report brings together three sources
businesses grasp the opportunities and
space, potentially opening central areas of insight:
overcome the challenges. This could require
for other uses.
adjusting regulations, shifting services and 1. It harnesses Faethm’s Artificial
• It could spur NSW workers to reconsider reprioritising infrastructure spending to Intelligence Predictive Analytics
where they live, work and consume, meet new patterns of demand and ways Platform (www.faethm.ai) to assess
reshaping our cities and regions. Some of doing business. the underlying potential for the NSW
workers might relocate to the urban
The changes caused by remote working workforce to work remotely.
fringe and commute less frequently.
could be both broad and deep. So 2. It presents new insights from the NSW
If workers do relocate, spending on
policymakers need high-quality data— Innovation and Productivity Council’s
services around employment centres
and they need it as soon as possible. Remote Working Survey of 1,500
could shift to new locations.
NSW remote workers—including shifts
in preferences, attitudes, time use,
labour productivity, and industry-
and occupation-specific impacts
(see Appendix A).
3. It sets out the NSW Innovation and
Productivity Council’s analysis of the
literature, to provide a balanced view
of what a shift towards remote working
means for policymakers, businesses,
and the public.
NSW Remote Working Insights 6New South Wales has long
had remote working potential
Technology and knowledge-intensive work have gradually
made remote working more feasible.
Remote working is an arrangement The potential for remote working
where an employee works from has also grown with the rise of the
somewhere other than their employer's knowledge-intensive worker.
workplace. Remote working is often Knowledge-intensive work—such as
called ‘telework’ or ‘telecommuting’. financial, professional, and technological
Employees often work remotely from services—has long been growing as a
their homes, but remote working can share of employment (Adeney, 2018).
be done from almost anywhere—a café, Today, knowledge-intensive work
a local work hub, even a train. accounts for around two-fifths of all
employment in New South Wales.
Futurists and academics have long
Compared with service work and
predicted that ‘distance-destroying’
physical production, knowledge work
technologies like laptops and mobile
is well suited to remote working. In
phones would move many workers out
New South Wales, Sydney has become
of their central workplaces (Nilles et
the national hub for knowledge
al., 1976; Toffler, 1990; Drucker, 1993).
industries. So Sydney has significant
As communications technology has
potential for remote working.
become better, cheaper, and more
widespread, more workers have gained
the potential to work from anywhere
with an internet connection.
NSW Remote Working Insights 7New South Wales has long had remote working potential
FIGURE 1: BEFORE COVID-19, THE NSW WORKFORCE HAD A LARGE Most of the NSW workforce Most NSW workers can
UNTAPPED POTENTIAL FOR REMOTE WORK
can do at least some work remotely part-time
work remotely But our analysis also highlights this fact:
Rather than classifying jobs as being working remotely is rarely an all-or-
Pre-pandemic, 63% suitable or unsuitable for remote work, nothing choice.
of NSW workers had we have broken jobs into their individual Most workers can work remotely, but
the potential to work tasks and assessed the remoteability only for part of their work time. While
24% 4+ days of each task (see Appendix C for our
remotely one or more 24 per cent of NSW workers could
approach). With that done, our analysis work four days a week remotely, only
days a week, but only reveals who in New South Wales can a fraction of that group (5 per cent
around 25% did. work remotely, and to what extent. of the workforce) could make the leap
As the right side of Figure 1 shows, to five days a week and become fully
8% 3–4 days nearly a quarter of the workforce can remote workers. 56 per cent of the work
perform more than 80 per cent of their done across the NSW economy is not
tasks remotely—equivalent to working remoteable, and must be done on site.
remotely four or five days a week.
5% 18% 2–3 days
A further quarter of the workforce
3% can work between two and four days
a week remotely.
8%
The left side of Figure 1 shows how
13% 1–2 days much of our workforce actually worked
8%
remotely before 2020. Comparing the
right and left sides of Figure 1 reveals
that before the COVID-19 pandemic, we
How many of us How many of us were operating far below our potential
worked remotely can potentially for remote work.
before COVID-19? work remotely?
Proportion of NSW workforce that Proportion of NSW workforce that
worked at least a day per week could work at least a day per week
remotely in 2019, by days per week remotely, by days per week
Note: Data for less than one full day of remote work are not shown. Totals do not add up
precisely due to rounding. Source: IPC calculations using data from Faethm and the IPC
Remote Working Survey 2020. See Appendix C for more.
NSW Remote Working Insights 8New South Wales has long had remote working potential
Knowledge-intensive FIGURE 2: MORE WORK CAN BE DONE REMOTELY
workers have the greatest Proportion of tasks that can be performed remotely, Proportion of NSW workforce
potential to work remotely by broad industry categories
Knowledge-intensive work, typically 80
77%
performed at a desk with a computer,
is often highly remoteable. This means 17% 22%
that the potential to work remotely is
skewed towards industries like IT and
finance. Population-serving occupations,
Per cent of tasks that can be done remotley
60
like social work and teaching, have a
Producing Knowledge
lower but still sizeable potential for intensive
remote work. Producing occupations,
like tradespeople and mechanics, have
the lowest potential to work remotely
40
(Figure 2).
33% 32%
The potential for remote work differs
not only across the broad industry Population
groupings, but also within them. serving
Waiters and doctors, for example, both 20
work in population-serving industries,
but doctors have much more potential
to work remotely than waiters. 8%
61%
4% 3%
0
Reality1 Potential2 Reality1 Potential2 Reality1 Potential2 1
eality: Worked from home (2016 Census)
R
2
Potential: Proportion of Remoteable Tasks
Knowledge Population Producing Note: This analysis is based on Faethm 'remoteability data'.
intensive serving Producing excludes agricultural jobs: the census classifies
many farmers as ‘working from home’, which does not
Accountants, IT specialists, Doctors, Truck drivers, Farmers, Trades, represent remote working.
Marketers, Consultants, Waiters, Nurses, Builders,Miners,
Journalists, Researchers, Mechanics, Teachers, Manufacturers Source: ABS, Census of Population and Housing 2016; IPC
Architects, Scientists Social workers calculations using Faethm data. See Appendix C for more.
NSW Remote Working Insights 9New South Wales has long had remote working potential
The rise of remoteable The remote working We have compared the total proportion
of tasks in knowledge-intensive industries
knowledge jobs has not revolution failed to that can be done remotely with the 2016
stopped economic activity materialise in Australia Census results. Doing so confirms the
concentrating in cities before 2020 divide between the level of remote work
before the pandemic and our underlying
Despite the rapid adoption of the Australia has lagged behind other potential (Figure 2). In knowledge-
technology that makes remote working advanced economies in adopting remote intensive industries, 77 per cent of all
possible, and the rise of highly remoteable working (Fitzgerald & Malik, 2017). tasks could be done remotely on average,
knowledge-intensive work, Australia’s Despite Australia’s rapid adoption of yet only 8 per cent of workers worked
economic activity has become increasingly the smartphone and broadband, from home according to the 2016 Census.
centralised in our central business a remote-work revolution failed to Population-serving and producing
districts (CBDs). Many Australians use materialise here before the pandemic. occupations show a similar divide.
telecommunications technology every
Before 2020, New South Wales was Given Australia’s technological parity
day at work. But until recently, most of
using less than half of its potential with other advanced economies, our
us have had to travel to our employer’s
to work remotely. We estimate that uptake of remote work has probably
workplace to use it.
while 44% of all work tasks in the NSW been held back by institutional barriers.
This paradox is not entirely surprising. economy can be done remotely, only
CBDs and centralised workplaces are tried 18% were done remotely in 2019 (see
and tested spaces for collaboration and Appendix B).
innovation. As the Council’s research has
shown, businesses and institutions that
co-locate in clusters or innovation precincts
can gain real economic opportunities from
collaborating and sharing knowledge and
resources in cost-effective ways (NSW
Innovation and Productivity Council, 2018).
Within New South Wales, Sydney
exemplifies this. Sydney’s architecture has
had to grow upward in recent decades
to house a growing number of workers in
knowledge-intensive occupations who want
to live near, and work in, Greater Sydney.
NSW Remote Working Insights 1003. The Lockdown Experience
COVID-19 has transformed
the remote work norm
To better understand We estimate that in 2019, around FIGURE 3: 4 TO 5 DAYS BECAME THE NORM FOR THOSE WHO
60 per cent of all NSW workers did at CAN WORK REMOTELY
how remote working least some remote working. Yet those
has changed in New who did some remote work before
Proportion of an average week worked remotely, by time period
COVID-19 did not do it that often. The
South Wales during majority did it for less than a day each
the pandemic, the week (Figure 3). Tellingly, among those 2019 full year 2020 Covid-19 period
who could work remotely in 2019, most
NSW Innovation and would have liked to do it more.
50
Productivity Council COVID-19 pushed matters to the opposite
surveyed 1,500 NSW extreme. During the pandemic, it was 40
Per cent of NSW remote workers
common for those of us who could work
workers during August remotely to do it four or five days a week
and September 2020. (Figure 3). 30
Looking at all the work done across
(See Appendix A for our approach.)
the NSW economy, we estimate that
20
the proportion done remotely rose from
18 per cent in 2019, to 43 per cent during
the COVID-19 pandemic (see Appendix B 10
for our approach).
We estimate that a maximum of 44 per
cent of all work in New South Wales can 0
be done remotely. The pandemic pushed Rarely/ Up to 1 1 to 2 2 to 3 3 to 4 4 to 5
remote working very close to this limit. never day days days days days
Note: The ‘2020 COVID-19 period’ covers June to September 2020.
Source: IPC Remote Working Survey 2020
NSW Remote Working Insights 12COVID-19 has transformed the remote work norm
Employers embraced FIGURE 4: COVID-19 TRIGGERED A SHIFT IN ATTITUDES TO REMOTE WORK
remote working during
the pandemic My organisation encouraged people to work remotely
In our 2020 Remote Working Survey, 2019 2020
NSW remote workers reported that
Strongly Disagree Neither Agree Strongly
their employers were more encouraging Disagree Agree
of remote work compared with 2019.
Similarly, NSW remote workers found
it easier to get permission to work
remotely in 2020, compared to 2019.
The difference in attitudes between 2019 My organisation was well prepared for me to work remotely
and 2020 are shown in Figure 4. Overall,
2019 2020
this indicates that employers responded
to the threat of COVID-19 and the Strongly Disagree Neither Agree Strongly
Disagree Agree
associated health restrictions by allowing
more remote work where possible.
It was common for people in my organisation to work remotely
2019 2020
Strongly Disagree Neither Agree Strongly
Disagree Agree
It was easy to get permission to work remotely
2019 2020
Strongly Disagree Neither Agree Strongly
Disagree Agree
Note: The figure shows 2019 and 2020 mean data. Source: IPC Remote Working Survey 2020
NSW Remote Working Insights 1310 ways remote work could
change New South Wales
1. 2. 3. 4. 5.
Productivity and Lower congestion More collaborative CBDs could Benefits would not be
living standards could benefit offices be transformed shared equally
could rise commuters
Not all NSW workers can Traffic congestion has long Many people are now asking: The shift to remote working Workers in knowledge-
work remotely, but those who challenged New South Wales, what is an office for? If workers during COVID-19 radically intensive industries benefit
can report being 13 per cent and especially Sydney. Slower meet in person less often, decreased foot traffic in the most from remote working
more productive on average. speeds, queuing, and longer collaboration and social Sydney's CBD, contributing to because their work is often
If remote working becomes more trip times cost the average interaction may become more an estimated $7 billion in lost highly remoteable. By contrast,
common, and the challenges Sydneysider an estimated central to the office. If offices revenues (Wade, 2020). While workers in industries like retail,
are managed well, the benefits $1,350 annually (Cosgrove, 2015). become places for workers to many workers will return to hospitality, and health benefit
for New South Wales could Congestion is a major focus meet and bounce ideas off one the CBD, more remote working less because they have many
be substantial. As the NSW for economic reform in New another, businesses will need to could permanently dampen tasks that must be done on
Productivity Commission (2020) South Wales (NSW Productivity rethink the kinds of offices they demand for CBD office space. on-site. These workers could
has highlighted, improved Commission, 2020). provide. The office may have to Other uses may expand to fill the still benefit indirectly, however,
productivity can drive stronger adapt to remain relevant. The gap—for instance, entertainment, through less traffic congestion
More remote work could
economic growth, stronger layout and design of existing culture, and the arts. and stronger economic activity
relieve this congestion, with
state finances and higher office space could change, with in local centres. More research
large benefits to the remaining
living standards. an emphasis on collaboration is needed to understand
commuters. Reducing traffic
spaces, virtual meeting rooms how remote working affects
by as little as 5 per cent could
and 'meeting booths'. different groups.
increase traffic speeds by up
to 50 per cent (Martin &
Thornton, 2017).
NSW Remote Working Insights 1410 ways remote work could change New South Wales
6. 7. 8. 9. 10.
We may need Health impacts Local economies Economic opportunity Many might relocate–
to rethink our would be complex could be revitalised may be less tied but not far
infrastructure to place
Much of our transport For many, the family and Remote working changes where There are more jobs in Sydney Commuting less makes it easier
infrastructure was designed to personal time gained by people spend their money. that can be done remotely than to live further from city centres,
serve pre-pandemic levels of working remotely would mean While COVID-19 restrictions in New South Wales' regions in housing that is cheaper or
transport demand and projected better mental health. But for have lowered overall spending, (Duke, 2020). In this sense, closer to amenities like beaches
increases in demand. Permanent others, remote work could the rise in remote working has the benefits of remote working and parks. Recent modelling
increases in remote working be isolating, or even mean also spread out spending that are more accessible to city suggests that remote working
could create excess capacity greater exposure to domestic was previously concentrated in workers. However, if city firms could lead more workers to live
on some existing services, abuse. The physical health CBDs. Workers who previously are willing to hire full-time on the urban fringe. But it also
and change the economics of impacts might also be complex. bought lunch in the city remote workers, new remote suggests that most workers
proposed transport projects. Remote working can free up have been buying it locally, job opportunities may open will continue to live fairly close
Where projects are shown to no time for exercise, but it can supporting local businesses for regional workers. Businesses to their employer’s workplace,
longer stack up, funding can be reduce incidental exercise, like and jobs. would also benefit, using remote and cities will keep growing
redeployed to other priorities. walking or cycling to work. work to access a bigger pool (Lennox, 2020).
During COVID-19, many remote of potential employees.
workers also set up makeshift
home offices without proper
ergonomic equipment, risking
preventable workplace injuries.
NSW Remote Working Insights 15NSW workers save more than
an hour a day working remotely
NSW Innovation and FIGURE 5: REMOTE WORKING ALLOWS FOR MORE PERSONAL AND FAMILY TIME
Productivity Council analysis Hours spent on activities when attending an employer’s workplace versus working remotely
suggests that by removing
the need to prepare for work Attending a workplace
and commute, NSW remote Commuting
Remote working
& preparing
workers and their employers -77 minutes
gain an average of 1 hour
and 17 minutes per day. Working
(See Figure 5.) +13 minutes
This is perhaps the single greatest benefit
of remote work.
Personal time
On days when they work remotely, NSW +49 minutes
workers spend 49 minutes more on
personal and family needs, and 19 minutes
more on caring and domestic tasks. They
spend only 13 minutes more time working.1 Caring
+19 minutes
1
ote that these tasks do not account for all the time
N
workers have during a day. As such, the sum does not
necessarily equal time savings from preparing for and 0 2 4 6 8
commuting to work. Hours spent on task
Note: Differences in time spent on tasks may not sum due to rounding.
Source: IPC Remote Working Survey 2020
NSW Remote Working Insights 16NSW workers save more than an hour a day working remotely
These time savings add up FIGURE 6: THE TIME AND MONEY REMOTE WORKERS SAVE
Figure 6 shows how an extra two days
of remote work a week translates into
additional time savings per year, and the
equivalent time in annual leave.
This additional time cannot be used in
the same way as annual leave—to take
a holiday, for instance. Yet it may in fact
2 123 3.3 860
have more value per hour than annual
leave time, because people are often
more time-poor during the working $
week. Avoiding a commute also saves days of remote extra hours weeks of leave savings in travel
money that would normally be spent work per week per year per year costs per year
on travel, paying for expenses such as
vehicle fuel, insurance, or bus fares.
People in Greater Sydney save the most
from avoiding commuting and work
“
preparation—on average, 1 hour and
20 minutes. But the time savings for Not having to commute to or prepare
regional remote workers are still large for work allows workers to fit in more
—around an hour on average. ‘life’. Not surprisingly, remote workers
point to better work-life balance as I don't have to commute 3 hours
”
one of the best aspects of remote
work. They also feel this helps them a day. It is amazing for me.
to better manage personal and family
commitments (see Figure 8). Female, 31, Wollongong, administration services
Note: Weeks of additional leave assumes a 37-hour work week. Travel costs savings are calculated using adult Opal 10-20 km peak time train fare.
Source: IPC Remote Working Survey 2020; Transport NSW; IPC calculations
NSW Remote Working Insights 17NSW workers save more than an hour a day working remotely
Some occupations work FIGURE 7: PROFESSIONALS WORK LONGER HOURS THAN OTHERS WHEN WORKING REMOTELY
longer hours than others
when working remotely Time spent working when at employer’s workplace and working remotely, by occupation
Professionals saw the biggest increase
in their working hours while working
remotely. Meanwhile, those who worked
25 14
in administrative and sales roles had the
smallest increases.
additional minutes additional minutes
While these results shed some light
spent when working remotely spent when working remotely
on how remote working affects
working hours, they also reflect the
unique circumstances of the COVID-19 Professionals Hours spent working Managers Hours spent working
pandemic. During the pandemic, many At employer’s workplace 7hr 30mins At employer’s workplace 7hr 47mins
workers were forced to work shorter When working remotely 7hr 55mins When working remotely 8hr 1mins
hours because of poor economic
conditions. Others were forced to work
shorter hours because they could not
do work tasks that still needed to be
done on-site.
1 additional minute
spent when working remotely
1 additional minute
spent when working remotely
Administrative Hours spent working Sales Workers Hours spent working
At employer’s workplace 7hr 24mins At employer’s workplace 7hr 30mins
When working remotely 7hr 25mins When working remotely 7hr 31mins
Note: Only occupations with 70 or more responses are shown.
Source: IPC Remote Working Survey 2020
NSW Remote Working Insights 18NSW workers save more than an hour a day working remotely
Extra costs are not a big issue FIGURE 8: REMOTE WORK IMPROVES WORK-LIFE BALANCE
for NSW remote workers Best aspects of remote working, in rank order
Many have argued that the costs taken
on by remote workers—such as provision
of equipment, internet connectivity, and My work-life balance
electricity supply—will outweigh remote
working’s benefits. These costs were
previously borne by employers.
Preparing for work and commuting
But our results show that cost-shifting
is not a major issue for NSW workers.
They rank extra costs as one of the least
significant barriers to working remotely Managing my personal commitments
(see Figure 10).
Extra time and a better My daily expenses
work-life balance are the
best parts of remote work
NSW remote workers on average list Managing my family responsibilities
improved work-life balance as the best
aspect of remote working. Time saved
on preparing for and commuting to work
ranks next. The aspects of remote work My job satisfaction
that workers themselves most enjoy
are all those that give them more time
0.0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1.0
for themselves and their families, as
Average score of positive aspect
Figure 8 shows. Remote work appears
to have little impact on job satisfaction.
Note: A higher score indicates a relatively better aspect of remote work.
Source: IPC Remote Working Survey 2020
NSW Remote Working Insights 19NSW workers find remote
working more productive “ Productivity is excellent
without these interruptions.
Female, 62, Sydney, administration services
”
Consistent with international findings, NSW workers FIGURE 9: MOST WORKERS REPORT HIGHER PRODUCTIVITY
WHEN WORKING REMOTELY
report being more productive for each hour that they
work remotely. (See Appendix A.) Productivity reported when working remotely, compared to
working at an employer’s workplace
Not everyone can work remotely, but Other sources of evidence confirm what 60
those who can report that on average workers around the world are reporting
they produce 13 per cent more each (see Box 1).
hour compared to working on-site.
It is important to put these findings in
50
53%
Our survey results were consistent context. The experience of COVID-19
Per cent of NSW remote workers
with many others. For example, in shows how remote working could
40
a poll of more than 10,000 workers improve labour productivity—the
across six developed nations, including amount a worker produces each hour
Australia, around 70 per cent said they work. If NSW remote workers 30
their productivity was the same or worked remotely as much as they
higher when working remotely prefer after the pandemic, we estimate 29%
(Citrix Australia, 2020). In another that overall labour productivity in New 20
survey of 12,000 employees, South Wales would rise by 1.6 per cent
75 per cent stated that they had (see Appendix D for more). This is a 18%
been able to maintain or improve promising sign for the future. But the 10
productivity while working remotely pandemic has harmed productivity in
during the COVID-19 crisis (BCG other ways. Many workers have tasks
Consulting, 2020). Another Australia- that cannot be done remotely and have 0
specific survey found 44 per cent of been unable to attend their workplaces.
workers rated themselves as more COVID-19 also caused a significant drop
productive after COVID-19 restrictions in the demand for many goods and
were implemented (Building 20, services, creating unemployment and
2020). Other surveys had similar reducing economic output. Productivity
results (Indeed, 2019; McCrindle will fall as firms will be reluctant to let Less As More
Research, 2013). go of skilled labour. productive productive productive
Source: IPC Remote Working Survey 2020
NSW Remote Working Insights 20NSW workers find remote working more productive
Box 1
How reliable are workers’ self-reported
improvements in productivity?
In surveys across the world, workers Empirical studies on remote working
consistently report they are more confirm the findings of surveys. One of
productive when they work remotely. the most notable studies involved an
Evidence suggests their perceptions are analysis of the output of employees at one
broadly correct. of China’s largest online travel agencies
(Bloom et al., 2015). The employees
We can check what workers report against were randomly allocated into ‘working
their managers’ views. Manager surveys from home’ and ‘working from the office’
on remote work productivity produce more groups, and their output was tracked.
tempered results but still suggest remote After nine months those who worked at
working improves productivity overall. home were found to be 13 per cent more
In an American survey of 1,500 hiring productive than the office workers. They
managers, 32 per cent saw an increase also showed a substantial increase in
in productivity among their employees employee retention.
during COVID-19 shutdowns, compared
with about 23 per cent who saw a decline In another study, the productivity of US
(Ozimek, 2020). Patent and Trademark Office employees
that could work from anywhere was
4.4 per cent higher than for those that
could not (Choudhury et al., 2018).
While these empirical studies add weight
to our findings, it is important to note
that each focuses on a single occupation.
The productivity of remote work is highly
dependent on each specific occupation
and is likely to vary significantly across
workplaces and industries.
NSW Remote Working Insights 21Know
Accou
NSW workers find remote working more productive Financ
Resea
Knowledge intensive
Popul
The productivity of remote TABLE 1: KNOWLEDGE-INTENSIVE INDUSTRIES Accountants, IT specialist
Docto
STAND TO MAKE THE BIGGEST PRODUCTIVITY GAINS Finance, Consultants, Jou
working varies across different Nurse
Researchers, Architects,
SocialS
jobs and industries Potential productivity gains of remote work, by broad industry categories
Table 1 shows that the productivity boost from
remote working varies across different types of
work. People who work in producing and population-
Population servingProdu
Knowledge intensive
serving industries report the biggest productivity
increases when working remotely. However, most Doctors, Marketers,
Accountants, IT specialists, Truck drivers,
FarmeW
work in these industries is not remoteable, which Nurses,
Finance, Consultants, Mechanics, Miners
Journalists, Teach
tempers their potential productivity gains. By SocialScientists
Researchers, Architects, workers
contrast, knowledge-intensive work is the most Knowledge Population Producing
remoteable work, so knowledge-intensive industries intensive serving
stand to make the biggest productivity gains overall.
Population servingProducing
Remote worker Propo
11% 13% 17%
Remote working can cut productivity improvement Farmers,
Doctors, Truck drivers, Trades, Builders
Waiters,
business costs Miners, Manufacturers
Nurses, Mechanics, Teachers,
Remote working offers employers the important Social workers
benefits of lower office costs and other overhead ‘Remoteable’ proportion 77% 33% 32%
costs. For example, Building 20 estimated that
moving to a full remote workforce could save
Sydney-based businesses around $13,680 per Potential industry-wide
Producing Proportion of NSW work1
employee on rent annually (Building 20, 2020). productivity increase
9% 4% 5%
Farmers, Trades, Builders,
Previous research has also highlighted remote
Miners, Manufacturers
working’s contributions to better recruitment,
Note: Weighted average estimates based on NSW Innovation and Productivity Council survey data. Only industries with 50 or more
higher retention (McCrindle Research, 2013) survey responses are shown. Estimates exclude industry workers who cannot work remotely. Potential productivity increases are
and reduced absenteeism (Indeed, 2019). calculated by comparison to a scenario of no remote working.
17%
Proportion of NSW workforce 2
NSW Remote Working Insights 22Much work must still be done on-site
Not surprisingly, tasks that must be done on-site reduce
the possibilities of remote working.
We estimate that 56 per cent of FIGURE 10: SOME BARRIERS ARE BIGGER THAN OTHERS
work in the NSW economy cannot
be done remotely.
Barriers to remote work, ranked from biggest to smallest
If a task involves working with
specialised equipment, or providing
personal services, remote work can I have tasks that can't be done remotely
be less productive or impossible.
Difficulty collaborating remotely
Car mechanics usually need access
to the machinery and vehicles at Feeling left out and/or isolated
their employers’ workplace. Medical IT equipment (computer, printer, etc.)
technicians need access to very
Lack of motivation
expensive and often immobile
equipment in labs and hospitals. Connectivity (internet connection)
Medical professionals usually need My organisation's software and systems
to be with their patients.
Cyber security
Management discourages remote working
My workspace (e.g. suitable chair, lighting, noise levels, facilities)
Poor management
My living situation (e.g. location, home size, who I live with)
Lack of remote working skills
Extra costs
Caring responsibilities
-0.8 -0.6 -0.4 -0.2 0.0 0.2 0.4 0.6 0.8
Average score
Source: IPC Remote Working Survey 2020
NSW Remote Working Insights 23Collaboration and knowledge-sharing
create challenges
Many NSW remote workers reported that their individual
productivity is higher when working remotely. But we also know
that teams and businesses are more than the sum of their parts.
The second-biggest barrier for While communications technology has These concerns are reinforced by
NSW remote workers was difficulty come a long way, there is no perfect research on ‘agglomeration effects’.
collaborating. Many remote workers also substitute for face-to-face interaction Agglomeration effects can happen
stated that their working relationships (Cytowic, 2020). Online, people interact when many workers come together
and on-the-job learning were negatively less naturally and spontaneously. in one physical location and are more
impacted. Many other surveys confirm By reducing the quality and quantity productive; the most famous example
that collaboration and communication of collaborative exchanges, remote occurs in California’s Silicon Valley. If
are key challenges when working working could hinder an important many workers become remote, these
remotely (Buffer, 2020; Indeed, 2019; aspect of overall productivity. agglomeration effects may not be
Smartsheet, 2020). experienced. While agglomeration's
More than half a decade ago, Yahoo was
effects are uncertain, if many workers
Research has shown that physical an early adopter of remote working,
become remote they may not be
proximity and face-to-face interaction but it reverted to on-site work due to
experienced. One estimate suggests
improve the development and diffusion difficulties collaborating (Goudreau,
that less interaction between Sydney
of ideas in knowledge-intensive 2013). Some analysts caution that remote
CBD workers during the COVID-19
businesses (Cunningham & Werker, working during the COVID-19 pandemic
pandemic might cause a $3 billion hit to
2012). Physical proximity allows workers could be stunting new ideas and lowering
New South Wales’ productivity in 2020
to communicate and solve complex, long-run growth (Gorlick, 2020).
(Wade, 2020). More research is needed
ambiguous problems, and share
to see what happened in practice.
knowledge with those around them,
“
raising productivity.
I would like opportunities to connect in person
even if most work is undertaken remotely.
Male, 51, Sydney, health care ”
NSW Remote Working Insights 24Collaboration and knowledge-sharing create challenges
But technologies and work practices
are adapting
Some organisations—especially in the IT sector—
have begun adopting ‘all remote’ business models,
and promoting practices to encourage collaboration,
communication, and team-building in remote work
environments (see for example GitLab, 2020). One
study suggests that short, concentrated ‘bursty’
communication can be highly effective for remote
collaboration (Riedl & Woolley, 2016).
It also seems that as remote working reaches a ‘critical
mass’, collaboration and knowledge-sharing become
easier within organisations. In 2019, 69 per cent of
NSW workers found it easy to collaborate remotely.
Information from our Remote Working Survey
suggests this improved to 78 per cent in 2020, when
the pandemic forced many more people to embrace
remote working.
It is also important to put collaboration in context.
Even knowledge-intensive workers do not need to
collaborate and communicate all the time. Many spend
a large part of their time working independently. And
while working next to colleagues can have benefits,
it can also create distractions that lower productivity
(Sander, 2016).
A ‘hybrid’ model may offer the best of both worlds
for collaboration and productivity, allowing workers
to work remotely on independent tasks, while coming
on-site for collaboration. The challenge for workers,
people-managers, businesses, and policymakers is
coordination—ensuring the right people are working
on-site at the right times.
NSW Remote Working Insights 25Social connection is a key challenge
‘Opportunities to socialise’ ranked as the worst aspect of
remote work in the NSW Innovation and Productivity Council’s
Remote Working Survey. (See Figure 11.)
Psychologists emphasise that a lack FIGURE 11: WORK RELATIONSHIPS AND A LACK OF SOCIAL INTERACTIONS ARE
of face-to-face interaction can lead to THE WORST PARTS OF REMOTE WORK
feelings of loneliness, which can damage
Worst aspects of remote work, in descending order
our health, happiness and productivity
(Evans, 2014; Robson, 2020). Other
surveys confirm this: employees often
report feeling less connected to their My opportunities to socialise
co-workers (Buffer, 2020; Building 20,
2020) or simply left out (Grenny &
Maxfield, 2017). My working relationships
My on-the-job learning opportunities
“
The number of hours I work
Remote working My mental wellbeing
works but I miss the
My personal relationships
incidental interactions
”
-1.0 -0.9 -0.8 -0.7 -0.6 -0.5 -0.4 -0.3 -0.2 -0.1 0.0
Female, 52, Sydney,
Average score of negative aspect
electricity services
Source: IPC Remote Working Survey 2020
NSW Remote Working Insights 26Social connection is a key challenge
Remote working can blur the lines NSW workers want a mix
between work and leisure of remote and on-site work
Working from home can leave workers feeling as if Due to the challenges outlined above, many employees
they are ‘always on’, increasing stress and negatively will return to their employer’s workplace when they
impacting work-life balance (Buffer, 2020). A 2017 can. Many of those may return to their pre-pandemic
United Nations report found that 41 per cent of remote patterns of remote work, particularly those who work
workers reported high stress levels, compared with just in industries where remote work is not ideal, such
25 per cent of office workers (Messenger et al., 2017). as education. But our results show many workers
have found that remote working works, and they are
enjoying the benefits. With cultural and institutional
barriers overcome, it is unlikely that these workers and
their employers will reduce their remote work back to
pre-pandemic levels.
“
Remote work has increased the hours
“A mix of remote and in the office time would
let me enjoy the physical social interaction
I work and the ‘out of hours’ demands.
” alongside the work benefits of being remote.
”
Male, 57, Sydney, professional services Female, 64, Sydney, professional services
NSW Remote Working Insights 2704. The Future of Work
A hybrid model could overcome
the greatest barriers to remote work
Our survey highlights three substantial barriers to remote working:
• having tasks that can’t be done remotely
• difficulties collaborating and sharing on-the-job knowledge
• social isolation.
All three of these barriers could possibly FIGURE 12: BEYOND COVID-19, THOSE WHO CAN WORK REMOTELY WANT A BALANCE
be addressed by a hybrid model of OF REMOTE AND ON-SITE WORK
remote work—a way of working that
combines remote and on-site work. Preferred proportion remote work, days per week
If employees work remotely some of the On-site benefits 30 Remote benefits
time, but come on-site for collaboration, 27%
team-building, and non-remoteable
tasks, they could find remote working
much easier. A hybrid approach has the Easier to Increased
Per cent of NSW remote workers
potential to combine the best aspects collaborate productivity
of remote work with the benefits of 20
working together in person. More time
More on-the-job
16% 16% for personal
Around 66 per cent of NSW remote learning 15% commitments
workers want to keep something similar 13% 14%
to the remote working pattern they Opportunities Saving on
experienced during COVID-19, while to socialise 10 transport costs
29 per cent would prefer to do less
remote working than during COVID-19.
Feeling more Better work-life
Our next NSW employee survey and
included balance
report will assess this further.
0
Rarely/ Up to 1 to 2 2 to 3 3 to 4 4 to 5
never 1 day days days days days
Source: NSW Innovation and Productivity Council 2020 Remote Working Survey
NSW Remote Working Insights 29A hybrid model could overcome the greatest barriers to remote work
After COVID-19, most want two- to FIGURE 13: NSW WORKERS EXPECT TO HAVE MORE CHOICE ABOUT REMOTE
WORK AFTER THE PANDEMIC
three- days of remote work per week
After the threat of COVID-19 subsides, NSW workers
who can do their work remotely would prefer a balance My employer would encourage more remote working
of remote and face-to-face work. The most popular
preference is two to three days per week.
Strongly Disagree Neither Agree Strongly
On average, those who worked remotely to some Disagree Agree
degree prior to COVID-19 said they would do more
remote work than before the pandemic. And many of
those who are new to remote work said they would
continue to do work remotely to some degree.
My employer would make changes to support remote working
Into the future, NSW workers expect Strongly Disagree Neither Agree Strongly
more remote work choice Disagree Agree
NSW remote workers think they will have more choice
about working remotely in the future, and will be more
supported if they chose to do so (see Figure 13).
I would have more choice about whether I work remotely
These results suggest that employers and workers
may agree to greater levels of remote work going
forward. Based on NSW workers' current preferences, Strongly Disagree Neither Agree Strongly
we estimate that 30 per cent of all work in New South Disagree Agree
Wales would be done remotely beyond the COVID-19
pandemic. This would be 69 per cent higher than
pre-pandemic levels. Our NSW Remote Working Note: The figure shows 2020 mean data. Source: IPC Remote Working Survey 2020
Insights research series will continue to measure
these changes over time.
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