Workplace flexibility not only boosts productivity but also contributes significantly to companies’ financial success. A new study reveals that companies that allow remote working have experienced revenue growth four times faster than those that are stricter about office presence.
The analysis of 554 US open companies, which employ a total of 26.7 million people, found that “fully flexible” firms – which are either fully remote or allow employees to choose when they come into the office – saw sales increase by 21% between 2020 and 2022, on an industry-adjusted basis. This compares to a 5% growth for companies with hybrid or fully face-to-face workforces.
The study, carried out by flexible working consultancy Scoop Technologies and the Boston Consulting Group, included companies from 20 sectors, ranging from technology to insurance. Among the companies that required some presence in the office, those with hybrid work grew twice as much as those that were completely face-to-face.
- Of the 5,565 companies in Scoop’s database, the share requiring full-time work in the office fell to 38% in October, compared to 49% at the start of the year.
- Among the companies that require a certain number of days in the office, only 6% require four days, with the majority requiring two or three, the Scoop-BCG survey found.
According to the survey, the higher growth rate for remote-friendly companies may be related to the ability to hire more quickly, from a wider geographical area, and to greater employee retention.