University of Maryland Robert H. Smith School of Business
Trying to find a new job where you can work from home? The pandemic has prompted many job seekers to seek remote or hybrid work, but how do you know if the job you’re applying for now will remain remote for years to come?
Some of the biggest clues can come from a company’s competitors.
In my last to research – co-authored with PhD student Smith Jingwen Yang, Charles Ham of Indiana University, and Wenfeng Wang of City University of Hong Kong – we reviewed work-from-home job postings and found that employers are more likely to offer remote work when more of their peers are already doing so.
Many people love the option of working from home. According to research, some employees are even willing to accept lower wages in exchange for workplace flexibility. Several employers such as Airbnb have noted that their career pages receive significantly more views when a job description includes the flexibility of working from home.
Even CEOs who are reluctant to offer the flexibility of working from home may be pressured into it if many of their competitors are doing so. Otherwise, they risk losing employees to these competitors or facing strong headwinds when attracting new talent.
The risk is even more real in a tight labor market, but if the economy goes into recession and the labor market cools, bargaining power could shift to employers. Companies that prefer a back-to-office policy might choose to hold their ground instead of bowing to pressure to provide remote work flexibility.
Here’s how to assess job opportunities for their long-term work-from-home potential — and how to allay a reluctant employer’s concerns if you land a work-from-home position.
Look at what company peers are doing. Take note of the competitors and the industry landscape. Some companies continue to embrace remote working (eg Airbnb, Amazon, Citigroup, and Facebook), while others prefer a back-to-office policy (eg, Apple, Goldman Sachs, JPMorgan, and Tesla). Our research finds that employers are more likely to offer remote positions when they face greater competition from their peers, especially in areas where employee demand for remote work is higher. strong. If there are plenty of employers offering remote work in the industry you’re looking for, you can be more confident that the one you want will stay that way. But while most companies in this sector have called workers back to the office, there is a risk that even jobs advertised as remote now could return in person in the future.
Keep an eye on the economy. If the economy goes into recession and labor markets loosen, bargaining power may shift back to employers. Companies that have reluctantly adopted work-from-home policies may reverse them even as their peers continue to offer remote work.
Be prepared to compromise. The future of working from home is unknown – I don’t think we’ll go back to where we were before the pandemic, but I don’t think we’ll go all the way to 100% remote working either. It could mean being ready to accept a hybrid work situation.
Show your worth, even from a distance. Some companies fear that working from home will have a negative effect on productivity. And employers fear that face-to-face communication and interaction is essential for teamwork, innovation, knowledge sharing and forming a strong company culture. Because of these concerns, employees working from home may have to go the extra mile to demonstrate their value to the company.
Make an effort to stay connected. One-on-one time with your boss and other colleagues is always important, especially when you’re new to a company. Some young workers worry that remote work will affect their career development. Even if you’re out of the office, make an effort to connect in person occasionally with your manager and co-workers.
Rebecca Hann is Assistant Dean of Doctoral Programs and Dean Professor of Accounting at the Robert H. Smith School of Business at the University of Maryland. Learn more about this research: Go remote? The role of competition in the labor market.
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