Letting People Work From Home Is Good for Companies’ Revenue Growth
A three-year analysis, co-led by Boston Consulting Group, found that sales at ‘fully-flexible’ employers grew at a much faster rate than those that didn’t embrace remote work.
US employers are increasingly calling workers back to the office.
Photographer: Ismail Ferdous/BloombergCompanies 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 Inc. and Boston Consulting Group, included companies across 20 sectors, from technology to insurance. Revenue growth was normalized against average industry growth rates so that employers in better-performing areas would not skew the findings.