EXAMINING THE RECENT SURGE IN
HOMEWORKING, ITS EFFECT ON
PRODUCTIVITY AND ITS LONG-TERM
FUTURE
ALAN FELSTEAD
SCHOOL OF SOCIAL SCIENCES
CARDIFF UNIVERSITY
Growth of Homeworking Before,
During and After Lockdown
Growth of Homeworking: Worker Surveys (1)
Source: own calculations spring/Q2 Labour Force Surveys, 1981-2020
0
1
2
3
4
5
6
7
8
9
10
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
%
R
epor
ti
n
g
W
or
ki
n
g
M
ai
n
ly
a
t
H
om
e
2.4%
4.7%
8.6%
1.5%
Growth of Homeworking: Worker Surveys (2)
Source: own calculations based on the Understanding Society Covid-19 Study, April, May, June and July 2020.
0
5
10
15
20
25
30
35
40
45
January/February
2020
April 2020
May 2020
June 2020
July 2020
%
of
16+
i
n
e
m
pl
oym
e
nt
Growth of Homeworking: Worker Surveys (3)
Source: based on data taken from the ONS Opinions and Lifestyle Survey, latest released 4 December 2020.
Late August
0 10 20 30 40 50 60 P er ce n ta ge o f w o ri n g a dul tsGrowth of Homeworking: Employer Surveys
Source: based on published data taken from the ONS Business Impact of Coronavirus (Covid-19) Survey, 7-20 September 2020.
0
10
20
30
40
50
60
70
80
Yes
No
Don't know
Yes
No
Don't know
More working at home prompted by Covid-19
Future use of homeworking
%
of
e
m
pl
oy
e
rs
Other Evidence:
But Sales of Jogging Bottoms &
Disinfectant are On the Up!
Surges Greatest Among Employees
and the High Qualified
0
10
20
30
40
50
60
70
Employee
Self-employed
Degree
No qualifications
Employment status
Highest qualification
%
of
wor
ke
rs
'a
lwa
y
s'
wor
ki
n
g
a
t
h
om
e
Before
During
… in Higher Skilled Jobs and Living in
More Prosperous Locations
Source: own calculations based on the Understanding Society Covid-19 Study, April, May and June 2020.
0
20
40
60
Managers Professionals Associate professionals
Operatives Elementary North East Wales South East London
Occupation Region/nation
%
of
wor
ke
rs
'a
lwa
y
s'
wor
ki
n
g
a
t
h
om
e
Before During… and in Higher Paid Jobs
Source: own calculations based on the Understanding Society Covid-19 Study, April, May and June 2020.
10000
15000
20000
25000
30000
Office/factory
Sometimes home
Often home
Always home
Net annual pay
Ne
t
an
n
u
al
e
ar
n
in
g
per
a
n
n
um
(
£)
Before
During
But Not According to Personal
Demographic Profiles
Source: own calculations based on the Understanding Society Covid-19 Study, April, May and June 2020.
0
5
10
15
20
25
30
35
40
45
Men
Women
BAME
White
Impairments
No impairments
Sex
Ethnicity
Disability
%
of
wor
ke
rs
'a
lwa
y
s'
wor
ki
n
g
a
t
h
om
e
Before
During
Theoretical Predictions
Theory
Processes Involved
Predicted Effect of
Homeworking
Situated learning
(Sfard, 1998; Jewson,
2008)
Employees improve their
productivity by watching,
listening and following
colleagues
↓ Lack of co-location reduces
opportunities to learn and
productivity is reduced
Teamworking
(Jarvenpaa and Leidner,
1999; Nandhakumar
and Baskerville, 2006)
Trust relations are built on
face-to-face interactions and
promises
↓ Trust will dissipate in the
absence of face-to-face
encounters and teams will
become less effective
Social exchange theory
(Gouldner, 1960;
Cropanzano and
Mitchell, 2005)
Parties are expected to abide by
unwritten rules and norms of
exchange which generate
reciprocity
↑ Through ‘give and take’
workers will put more effort
into their work in exchange for
working at home
Border theory
(Clark, 2000)
Role conflict may be increased
or reduced – depending on the
permeability of the home/work
boundary
? may ↑ or ↓
Home spill-overs will reduce
productivity, whereas getting
away from work disturbances
may increase it
Consequences for Productivity:
Worker Evidence (1)
0
5
10
15
20
25
30
35
40
45
Much more done
per hour
A little more done
per hour
Same done per
hour
A little less done
per hour
Much less done per
hour
%
of
h
om
ewor
k
ing
e
m
pl
oy
ee
s
Consequences for Productivity:
Worker Evidence (2)
11.8
40.9
34.1
13.2
Homeworkers’ Future Preferences
Never working at home
Sometimes working at home
Often working at home
Always working at home
0 5 10 15 20 25 30 35
Got much more done per hour at home Got much less done per hour at home
% o f h o m ew o rki n g em pl o yee s
Future Homeworing Preferences and Productivity
Change
Never want to work at home again Wants to work at home always
• Nine out of ten employees who
worked at home in June 2020
would like to continue doing so
• Nearly half would like to work
at home often or always
Source: own calculations based on the Understanding Society Covid-19 Study, June 2020.
• The most productive are the
keenest to continue working
at home
• ‘Selection effect’ benefits
future productivity
Consequences for Productivity:
Employer Evidence (1)
0
10
20
30
40
50
60
Rise
No change
Fall
Don't know
%
o
f em
p
lo
yer
s
Productivity Effect of Homeworking
Consequences for Productivity:
Employer Evidence (2)
0 10 20 30 40 50 60 70Improved staff well-being Reduced overheads Increased productivity
% o f em pl o yer s
Reasons for Future Use of Homeworking
0 10 20 30 40 50 60 70
Not suitable for business
Not sure Reduced communication Reduced productivity % o f em pl o yer s
Reasons for Not Using Homeworking in the
Future
Source: based on published data taken from the ONS Business Impact of Coronavirus (Covid-19) Survey, 7-20 September 2020.