The Evolving Landscape of Work: Analyzing Remote Work Trends

The popular yarns about “work from home” and “return to the office” tend to be absolutist. First, there’s the notion that prior to the COVID-19 pandemic, everyone was in the office every day. Next, the idea is that during and after the pandemic, no one went in at all. Lately, the story goes that offices are packing up to the rafters yet again.

The truth, underscored by the findings from the fourth edition of McKinsey’s American Opportunity Survey (AOS), which explores Americans’ views on economic opportunity, is more nuanced. Flexibility existed on some level even prior to the pandemic. Not every workplace emptied out after March 2020, with tumbleweeds rolling through the halls since then. The latest AOS data shows that there has been an uptick in respondents who report working fully on-site compared with 2022, but the change has been modest.

The evolving landscape of work: In-person and remote-work models coexist

The percentage of full-time and part-time workers who said they work fully or partly remotely dropped by four percentage points, to 40 percent, in 2024. Forty percent of workers reported that their employers also prefer remote work, indicating that remote arrangements could stabilize at around that level.

Remote work varies by education and income—and in surprising ways by age and gender

Also of note is new data on women’s preferences. During the pandemic, it was widely understood that women preferred work-from-home models because of the childcare flexibility. However, the new data finds that women who do not have children in the home were also more likely than their male counterparts to prefer working from home. Clearly, the desire for childcare flexibility alone doesn’t fully explain women’s preferences.

High-income and high-education cohorts desire remote-work arrangements and have more of them

Workers with higher levels of education and income were more likely to prefer remote-work models and also more likely to work remotely compared with other surveyed cohorts, probably because they were more likely to have office jobs that could be conducted remotely.

The youngest workers surveyed prefer remote-work models less than other age cohorts

The youngest workers surveyed (those aged 18 to 25) were the least enthusiastic about remote work. Perhaps because they are starting their careers, younger workers may benefit more from the increased support and community building offered by on-site experiences.

Women prefer to work from home more than their male counterparts—whether or not there are children in the home

Women preferred remote-work arrangements seven percentage points more than men did overall. When examining additional demographic variables such as race, education, and income, women’s preference for remote work relative to men remained.

Remote work doesn’t solve all challenges, but its flexibility can make employment more accessible

Remote work doesn’t solve all of workers’ challenges. When comparing in-office workers with those who work remotely, there was only a two-to-four-percentage-point difference in the number who reported experiencing obstacles to satisfaction at work.

How employers and real estate owners and operators can appeal to workers

Organizations can use flexible work to compete for talent

Employers’ successful and customized adoption of flexible work can help them compete in the talent market. There was significant variation in respondents’ remote-work preferences by occupation and sector.

Real estate owners and operators can find opportunities as working patterns change

Potentially lower demand for office space has been a persistent headline since the pandemic started. However, while McKinsey has modeled lower demand for office space by 2030 in many major global cities, less office space is not the only story.

FAQ

Q: Are remote-work arrangements here to stay?

A: Yes, remote-work models represent a structural change with staying power, as indicated by several years of data.

Conclusion

As the landscape of work continues to evolve, companies and real estate entities must adapt to meet the changing needs and preferences of workers. By understanding the nuances of remote work trends, tailoring offerings to attract and retain talent, and reimagining office, residential, and retail spaces, organizations can thrive in this new era of work.