What we already know: The Covid-19 pandemic has shaken up how we work, making organisations rethink where and how their employees should operate. 

What the science tells us: Our recent study digs into these changes, especially looking at how working from home affects employee wellbeing and performance. The big takeaway? Organisations need to get flexible with work policies to create a positive work environment.

What was the question: do work environments (hybrid/remote/fully office based) have an impact on employee performance and wellbeing?

The great debate on remote vs office Work

Remote working continues to be a hot topic as organisations continue to attempt to define their 'new normal'. Some employers argue that office-based work leads to better wellbeing and results, but our study challenges this. Our original and most important question when we began our research was whether flexibility in work environments had an impact on performance and wellbeing. Basically, were the naysayers right and did people need to get back to the office for the sake of the success of the business and their own wellbeing. Drum roll please… we discovered that the short answer to that was no. We found that remote and hybrid workers perform just as well and have similar levels of wellbeing as those based in the office.

Counterproductive behaviours in remote work

A surprising finding was the significant link between fully remote workers and counterproductive work behaviours. Remote workers were more likely to complain, speak negatively about the organisation, and exaggerate problems. This suggests that fully remote work might hide early signs of dissatisfaction, making it harder for managers to address issues before they grow.

How work environments affect employee behaviour

Our first finding was that good home working conditions are linked to higher levels of wellbeing and performance. Even more significantly, we discovered that home circumstances play a big role in boosting well being and job performance. This backs up the existing research suggesting that the ‘new normal’ post-Covid work setups impact individual wellbeing and performance (Ahmed et al., 2021; Brazeau et al., 2020; Bromfield, 2022). Our research also showed that the environment where people work can influence counterproductive work behaviours (CWB)

Wellbeing and performance: they go hand in hand

Positive psychology (the scientific study of what makes individuals, organisations and communities thrive), suggests that wellbeing and work performance are closely connected, and our study agreed. It went further to show that how well someone performs at work, especially in their overall contributions and avoiding negative behaviours, can even predict their wellbeing. In essence, there is not only a correlation, but also a causal relationship between performance and workplace wellbeing, meaning performance can enhance wellbeing in employees.

Home working conditions and wellbeing

One standout finding was how much home working conditions matter. Better home work setups lead to higher wellbeing and health. From a performance angle, people with better home conditions are more engaged and willing to challenge themselves. This highlights the need for organisations to ensure their employees have good home working environments to boost performance and wellbeing. Our findings suggest a more nuanced approach to workplace wellbeing, recognizing that just because someone isn’t showing negative behaviours, it doesn’t mean they are thriving. And that is important. How many times do managers ask how their team members are and take the first answer (usually “fine”)? We’d suggest that managers need to ask better questions of their remote workforce to understand how their team members really feel. Even better, use a validated method of measuring the wellbeing of the workforce to get a true reflection. 

The power of positive leadership

Of course the importance of leaders was going to make an appearance in our study and it didn’t disappoint! Positive leadership and  positive organisational behaviour (POB) are crucial for workforce wellbeing. Leaders who promote wellbeing and performance can uplift the whole organisation. Our study found that job level affects wellbeing and performance, especially regarding feelings of meaning and overall contributions. Senior employees often find more meaning in their work, positively influencing their performance and as role models, the performance of their team members.

The shift towards flexible hybrid working

Our research showed a strong preference for hybrid working models, with over 40% of participants preferring to work in the office for two days a week and from home the rest of the time. This aligns with other studies showing the benefits of hybrid working (Choudhury et al., 2022). As organisations start making dramatic decisions to mandate 3-5 days in the office, it's worth attempting to accommodate these preferences to keep employees happy and productive.

Practical tips for organisations

• Companies need to ensure that their efforts in redesigning work environments pay off. Taking into account people’s desires combined with organisational needs are essential
• Check in properly on employee wellbeing at least twice a year - we’ll do a follow up article on this
• HR professionals and leaders need to nurture employee relationships and establish meaningful ways to connect with remote employees. Regular check-ins can help spot and address issues early. 
• Consider how you can bring people together in-person and enhance that time with activities that connect, inspire innovation and build strong relationships
• Ensure that you are leading by example by  checking in on your own wellbeing and promoting discussions with your team members.

Bridging the gap between managers and remote workers to discuss intentions to leave early on can help mitigate current trends in employee turnover.

Policy changes needed

Many current work environments have been rapidly implemented without thorough planning or risk assessment. Policies should require regular checks on remote workers' wellbeing to prevent long-term negative behaviours and outcomes. Integrating positive psychology into the workplace is essential to ensure optimal functioning and wellbeing for employees and organisations alike.

In conclusion, our research highlighted the importance of flexibility in modern work environments. Organisations that embrace flexible work policies and promote positive leadership will be better equipped to enhance employee wellbeing and performance, leading to greater success for everyone involved.