Strong organisational and management capabilities are key to implementing and getting the most out of successful remote and hybrid working practices.
New research involving more than 800 UK businesses has found that companies that adopted remote working early, invested in training, and introduced management practices are far more likely to report benefits and productivity gains than those that did not.
Public and political debate around working from home has intensified in recent years, with some arguing that a full-scale return to pre-pandemic office norms would strengthen the economy. Yet the share of UK workers operating remotely has doubled since 2019, placing the UK as the European leader for flexible work.
Now, a new study from the University of Birmingham and the London School of Economics shows that remote work arrangements provide significant business benefits, particularly in staff wellbeing and recruitment. Where challenges do occur, the research finds they are driven primarily by issues in managing and coordinating remote teams, rather than by remote working itself.
Published today (Wed 18 March), the report draws on a survey of businesses of varying sizes and sectors across the UK.
Whilst not all companies report positive experiences with WFH practices, our research shows that the key to successful remote work lies not in the practice itself, but in the organisational capabilities that support it.
The study found that the vast majority of businesses surveyed (88%) have successfully adopted remote working since the COVID-19 pandemic, with most sustaining or expanding remote and hybrid working practices. Only 16% have discontinued remote work entirely, and just 13% believe a full return to the office is likely. These findings indicate that flexible work is no longer a temporary crisis response, but a long-term structural shift in how UK organisations operate.
Hybrid work has become the dominant model: half of firms that adopted remote working have a 1-2 days per week policy, while one in four allow 3-4 days.
Strong management practices, early adoption and targeted training were found to be crucial in helping firms realise productivity gains from remote and hybrid working. For example:
Lead researcher Dr Davide Rigo, Assistant Professor in Business Economics at Birmingham Business School, said: “Since the pandemic, hybrid working has become a standard work arrangement for employees in advanced economies, and our research shows that it isn’t likely to change. Whilst not all companies report positive experiences with WFH practices, our research shows that the key to successful remote work lies not in the practice itself, but in the organisational capabilities that support it."
While remote work expands recruitment opportunities for most firms, these benefits are heavily concentrated among larger firms and in the South East.
Negative experiences with remote working were concentrated among companies that struggled with the management and coordination of remote workers.
Those who discontinued WFH report the most severe challenges with collaboration, monitoring performance and maintaining corporate culture. In contrast, firms that maintained or expanded remote work were far more likely to report neutral or positive outcomes in productivity, recruitment and innovation.
Staff wellbeing emerges as the most widely cited advantage, with more than half of firms identifying it as a key benefit, consistent with broader evidence linking remote work to improved employee satisfaction and retention.
Remote work also expands hiring opportunities. Around a quarter of firms report improved access to labour markets, a share that rises sharply among large firms, which are far more likely to cite easier recruitment and access to specialised skills.
However, not all firms benefit equally, which can be caused by location and size of companies. Large firms can recruit nationally regardless of where they are based, but for smaller companies, the hiring related benefits of remote work are heavily concentrated in London and the South East.
Dr Rigo added: “While remote work expands recruitment opportunities for most firms, these benefits are heavily concentrated among larger firms and in the South East, raising important questions about regional inequalities.”
The report concludes that imposing uniform approaches to remote work is unlikely to deliver the best outcomes for businesses. Instead, targeted support, including management training and technical assistance for small and medium-sized enterprises, can help ensure remote work delivers sustained productivity gains. As remote work shows no signs of going away, this support will be crucial to prevent widening productivity divides between companies and regions.
For media inquiries please contact Ellie Hail, Communications Officer, University of Birmingham on +44 (0)7966 311 409. Out-of-hours, please call +44 (0) 121 414 2772.
Assistant Professor in Business Economics
Dr Rigo is interested in technological change, innovation and international economics with a focus on the role of firms.
