Remote work has slowed wage growth and raised productivity

New economic research reveals a link between remote work and lower wage growth, contradicting expectations. Each extra home day correlates with 0.5% less growth, even as workers value flexibility. This suggests expanded applicant pools and pajama productivity give firms leverage to suppress pay.

But remote work also correlates with higher productivity, around £15,000 annually per home day. This likely explains why 30% of employees now have hybrid roles, which bosses expect to persist. If home working means happier staff and higher output, why mandate office returns?

Some cite culture concerns, but back-to-office orders have not boosted profits or value. Rather, data indicates such control asserts manager power and scapegoats staff. Facts undermine intuitions on remote work's impact. Benefits like lower costs seem to outweigh downsides for many firms.