Working from Home

Working from Home

Who can work from home?
The ability for people to do their job from home is strongly tied to their occupation and the tasks they are required to perform. Working from home is particularly suited to office-based workers such as managers, professionals and clerical and administrative workers, where workers use computers, interact less with the public, do not perform outdoor work or physical activity, and do not work with immovable structures, materials or equipment.
Census data from 2016 shows that approximately 35% of workers had jobs that were amenable to working from home. This potential to work from home is associated with higher levels of education and higher incomes, and full-time jobs.

Why didn’t these people work from home before the pandemic?
Prior to the pandemic, the technology allowing many people to work from home existed — but very few took it up. HILDA data show that, in 2019, around 8% of employees had a formal work-from-home arrangement, and worked a median of one day per week from home. Overall, around 2% of total hours were worked from home. Census data from 2016 also suggests that a small proportion of workers (5%) worked from home instead of commuting on census day.
A number of reasons can be advanced for low take-up of work-from-home arrangements prior to the pandemic. Management practices and cultural norms in workplaces, and stigma associated with working from home, may have discouraged remote work. Firms would have been reluctant to invest in the technology and systems for large-scale working from home, given uncertainty about its benefits. As the CEO of Morgan Stanley explained in 2020:
If you’d said three months ago that 90% of our employees will be working from home and the employer would be functioning fine, I’d say that is a test I’m not prepared to take because the downside of being wrong on that is massive. (Cutter 2020)