Facts for You

A blog about health, economics & politics

In recent months, many observers have described the City of London as resembling a ‘ghost town’. The undesirable economic effects of the depopulation of the City and other major city centres in the UK have led to appeals from the Prime Minister and other government ministers, pleading with employees to return to the workplace as soon as safely possible. But even in mid-September 2020, the Square Mile, the nerve centre of the UK’s financial services industry, seems eerily quiet. Normally bustling tube stations can be negotiated with ease. Offices seem deserted, some sporting apologetic signs stating that they are not yet “COVID-secure”. Few workers, normally propping up walls while having a quick smoke, are to be seen outside those offices still open. Many shops, cafés, bars and restaurants have closed for good, while others display notices promising an early return to business. Hardly any taxis ply the streets, and even tourists are few and far between.

The COVID-19 pandemic has changed our lives in many ways. For many office workers, remote-working from home has now become the norm. The concept of home-working is not new, but hitherto was a privilege accorded only to a fortunate few, and it was by no means on the rise. Some companies, such as Yahoo and IBM, had even experimented with home working, only to recall their employees back into the office. According to the Office for National Statistics, only around 5 per cent of the UK workforce worked mainly from home in 2019. This figure had, however, risen to include 46.6 per cent of all people in employment in the UK by April 2020, during the early stages of the pandemic.

Many workers, whose jobs entail social interaction with other humans or involve tasks that can only be performed at a particular location have, however, failed to benefit from the recent trend for remote working. Most people who work in the construction sector, retail trade, and hospitality and entertainment sectors are unable to work from home. for obvious reasons. Even some office workers, such as security personnel, receptionists, cleaners and maintenance staff, have to travel to the workplace. But the overall experience for those who have now joined the home-based workforce seems to be a positive one. Surveys of this segment of the workforce have shown that, given a choice, most would prefer to continue working from home and that this desire is not solely based on a fear of getting infected with COVID-19 once back in the wider community.

The question of home working versus office working can be explored from a number of different angles. There are both pros and cons for each option. Offices are not always the best environment to work within. First of all, you have to get to the office. The journey can involve a long and tiring commute on crowded trains or buses or a challenging journey by car or taxi on congested roads. Increased traffic on the roads also means increased air pollution and increased carbon emissions. Commuting by rail is particularly expensive, and if you can’t even get a seat, you can’t catch up with work on the way in, if you had so wished. You may have to purchase business attire or to wear office uniform, and to buy over-priced drinks and meals from office cafeteria and canteens. The office environment may be bad for your physical health because of noise, dust, heat, low humidity, poor lighting, and inadequate ventilation. Those most severely affected by poor working conditions may eventually suffer with symptoms of the so-called sick building syndrome. Then your mental health may be adversely affected by office politics, discrimination (sexism, racism), harassment, bullying and other stress-inducing factors.

Many workers have discovered the benefits of home-working during the pandemic and appear reluctant to return the old days of largely office-based work. This has been made possible by recent technological innovation, which has had a major influence on the ways in which we work. Teleworking, video conferencing and intranets have reduced the need for close proximity when communicating with work colleagues, and also with those outside of work. But there are some downsides to remote working, which include unreliable internet connectivity at home, a lack of off-site technical support, risks to information security, not to mention the initial costs of setting up equipment at home as well as ongoing broadband costs.

Home-working seems to offer a better work-life balance for many workers, with reduced stress and a lower likelihood of sickness absenteeism. You can choose the location where you choose to work from, and even set up a comfortable and customised workspace of your own, designed to suit your personal requirements. Time and money spent on commuting are saved and put to alternative and productive use. Besides, the 9 am to 5 pm schedule of work is losing relevance anyway. The new hours of work can undertaken flexibly from home, fitted around childcare and other commitments. and can allow for suitably long breaks and exercise workouts. Morale is uplifted, employee retention is improved and employee turnover consequently falls.

Employers are naturally concerned about the productivity of their employees. It appears that, for most workers, productivity increases when working from home. This does, however, require motivation, self-discipline, time management, and an ability to work without close supervision. In some cases, productivity may actually fall, and not only because of the usual distractions at home. Not all people are suited to working from home. Some employees may feel lonely and socially isolated, miss personal contact with colleagues and the team spirit of the office, and require face-to-face communication to deliver their best. Monitoring of progress and the provision of feedback are also more difficult ,when it comes to dealing with home-workers.

The COVID-19 pandemic has had many unanticipated effects, including a sharp decline in office-working. It seems that things are unlikely to return back exactly to the way they once were. We will undoubtedly witness a permanent reduction in the numbers of office workers, while in some cases home-working will be combined with limited office hours, thereby overcoming any disadvantages of working solely from home. More home-working will also reduce overheads, such as rental costs for business premises and the costs of building maintenance, and many companies are thus already wholeheartedly supporting home-working.

But these changes in working practice come at a price, in the form of unintended, but inevitable, harm to other sectors of the economy. Many retail businesses in places such as the City of London, including shops, cafés and dining establishments, attract most of their trade from commuters and tourists, who may also make use of taxis to get around. These businesses will be forced to downsize, or may cease to exit, thereby leading to many job losses. The resulting contraction of economic activity in our city centres will inevitably delay and prolong the nation’s recovery from the COVID-19 pandemic. Nevertheless, we will probably have to come accept the demise of office-working as we have known it as we head towards the “new normal”- a phrase I am not particularly enamoured of.

Ashis Banerjee