• Covid-19 has accelerated trends towards greater digitalisation in how we work. With 3 out of 4 people from a recent EIU survey wanting to work from home more post-pandemic, online communication, operations and processes are set to become permanent and frequent features of our professional lives. 

• This shift has the potential to change employee experiences for the better – if the associated risks are also mitigated. Benefits include greater productivity and flexibility for people who might otherwise have left the workforce; while challenges emerge from increased isolation and a blurring of the lines between work and home.44% of people cite distractions or caring responsibilities in the home as their greatest challenge while working remotely, with the figure rising to almost half for working mothers. 

• Companies will have to actively manage this digital transition or face falls in output from their workforce. Over 40% of people who said they weren’t sufficiently supported by their employer also did not feel their team was as productive working from home as in the office.

• Businesses need to offer support at every level of their operations. Leadership has to model the right behaviours; policies should reflect a more flexible landscape and digital tools can replicate current support systems online. Transparency throughout is central. 77% of respondents said employers should provide guidance and rules around working from home.

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About the Study 

This research project from the Economist Intelligence Unit (EIU), supported by Allianz Partners, focuses on how we work in an online world and the impact this has on our mental and physical wellbeing. We explore how trends that have been emerging in the last two decades have been accelerated by Covid-19 and what companies should do in light of the new working landscape that has emerged in 2020. This report is informed by an extensive literature review and expert interview programme, as well as a survey of 1000 people who worked from home during the pandemic in Canada, France, UAE, UK and Singapore. 

Key Findings 

Covid-19 has accelerated trends towards greater digitalisation in how we work.  In April, the International Labour Organisation (ILO) estimated that 2.7 billion employees – 81% of the global workforce – were subject to full or partial lockdown measures. In many places these restrictions meant that those who could do so had to work from home. This move prompted an exponential rise in digital communications, operations and processes – for example the number of users on one online video conference platform increased by a factor of 20, to 200 million worldwide, in one month.   

A survey by the EIU of workers in Canada, France, UK, UAE and Singapore suggests this has changed employee’s preferences about where themselves, and their team, should be based. 75% of people surveyed wanted to work from home more post pandemic, and 69% would be comfortable letting a junior member of their team to do so too. If this expectation becomes a reality it will lead to more of our professional communications, operations and processes moving online. 

This has the potential to change our working lives for better – if the associated risks are successfully mitigated. Improvements will be derived from giving people greater flexibility in how, when and where they do their jobs. Our research suggests this increased control can support diversity and inclusion as people with other responsibilities (e.g. parents and carers) can more easily define their own schedules. Further, a recent survey of business respondents from 80 countries found that almost half of those who worked remotely said their team included people from different cultures. In general, flexible working has been shown to improve productivity and job satisfaction – 90% of employees offered working from home said it had boosted their morale. 

“In the Oil and Gas sector [increased remote working] makes it easier for people from a more diverse background to apply for jobs, as well as people less able to travel to remote sites”.

–  Professor Paul de Leeuw, Director of the Robert Gordon University Energy Transition Institute

However such benefits will not be automatically realised. Digital working practices, especially working from home, have also been linked to increased isolation and stress.  44% of people in the EIU survey cited distractions or caring responsibilities in the home as their greatest challenge while working remotely. This figure rose to almost half when considering only working mothers. Also concerning is that 1 in 8 people in our survey noted dealing with isolation as their biggest strain –a known risk factor for mental illnesses including depression. If such challenges continue in the long term they could cancel out any benefits for employees in the ‘new normal’ of more working from home.

Companies, therefore, need to do more to manage this transition or face falls in output from their workforce. According to the EIU poll, almost one third of people working from home during the pandemic have not felt sufficiently supported by their employer. Particular problems exist for certain demographics. 74% of older employees want help on using new IT systems and 8 out of 10 younger people wanted guidance and rules on what was expected of them while working from home. If gaps in support are not filled, they are likely to impact productivity. Over 40% of people who said they weren’t sufficiently supported by their employer also did not feel their team was as productive working from home. This figure can be compared to around a quarter of people who did feel their employers offered them sufficient support but still felt their team was not just as productive. 

“Previously we thought people had to physically be there to get results – but now we are seeing that when we are forced to be virtual we can work in very different ways.”

– Kristine Dery, research scientist at MIT Sloan School of Management in the Centre for Information Systems Research

Business leaders should consider changes at every level of their organisation in order to maximise the benefits and minimize risks of digital transformations. First and foremost leadership is central.  Executives need to model the behaviours they are trying to instil; whether on returning to the office, being open about accessing mental health support or setting boundaries between work and home life. Secondly, technology gives companies the flexibility to create new systems of work and company policies should reflect rather than constrain this opportunity. For example, rather than imposing top-down rules on issues such as working hours, policies should mandate that, at a team-level, there should be a guidance in place defined by that group. This approach ensures people know what is expected of them but also allows employees to decide for themselves what works. Lastly, digital mirrors of all existing support processes around mental and physical wellbeing need to be created to ensure people can still get the help they need from home. Our research suggests gaps are already appearing.  6 out of 10 people had not had an honest conversation about their mental wellbeing with their employer since the imposition of Covid-19 restrictions and over a third did not feel sufficiently supported on their mental health. 

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