Firms that are fully embracing remote work arrangements are not just striving for better attraction and retention rates; this decision could also be leading them to outpace their peers in revenue growth.
According to a report published by hybrid work management firm Scoop in partnership with the Boston Consulting Group, companies offering flexible work arrangements have shown remarkable revenue growth. The study observed 554 public companies and revealed a 16-percentage point higher revenue growth over three years compared to firms with more traditional office policies.
The study challenges the notion that physical presence in an office is essential for productivity and growth — a key factor that many advocates for stricter return-to-office policies often cite. It also suggests that there is an inherent value to leaders trusting employees with choosing their work environments.
According to an analysis of the study published by Forbes, companies with “fully flexible” policies, or those that allow employees/team members to decide their office attendance, experienced a 21% industry-adjusted revenue growth rate. In comparison, companies with more stringent policies showed only 5% growth. These findings are important, considering the ongoing debate about the productivity and efficiency of remote work arrangements.
Embracing flexible work policies is not just a temporary response to changing times but it could be seen as a strategic move that should be considered on a case-by-case scenario, depending on the nature and industry of the business. As more companies recognize the benefits and potential flaws of flexible work arrangements, we can expect a move towards more adaptable and employee-centric work policies. This evolution will likely contribute to greater productivity, employee satisfaction, and, as the report suggests, potentially higher revenue growth.