Working from home or in the office … which will make you happier?
Working from home or in the office … which will make you happier?
The definitive guide ...
Whenever I talk to companies about happiness at work, the debate over RTO (return to office) vs remote is always the most requested question in the Q&A. Everyone has strong opinions on it.
So, who’s right? Which is better - remote, hybrid or office-based work?
Today I’ll attempt to answer this question once and for all.
Employees don’t want to return to the office
Every week, there’s a new backlash to an RTO mandate. Last month, it was Amazon's turn. They asked their team to return to the office five days a week, and it hasn’t gone down well. People are quitting, refusing to work outside set hours and people are genuinely upset.
“My morale for this job is gone, gonna totally check out”
one employee wrote on an internal survey.
Amazon isn’t alone, just google “RTO backlash” and you’ll see Dell, Apple, Meta, Salesforce, Disney and hundreds of other companies facing similar resistance.
In the last two years, I’ve yet to see an article titled, “Employees Celebrate Being Ordered Back to the Office for Five Days a Week.”
Why are people complaining?
This article in Entrepreneur.com explains it really well - If someone had their car keys taken away from them as a teenager, it was devastating. Why? Autonomy was lost.
A key driver of happiness at work is a sense of autonomy, a feeling that you have control over your work and are trusted. When companies issue RTO mandates, employees feel a loss of control.
And, to add insult to injury, it’s hard enough when you don’t have autonomy, but gaining it only to lose it is even worse.
This relates to something known as the “endowment effect,” where people place a higher value on things they already own. This theory, rooted in loss aversion, a key concept in Daniel Kahneman and Amos Tversky’s prospect theory, helps explain why employees value the autonomy they’ve had for the last few years even higher than pre-COVID.
Ask someone if they’d pay £300 for a Taylor Swift ticket, and they might say no. But if they already own a ticket they bought for £150, they’re unlikely to sell it for £300—they value it more because it’s already theirs.
Interestingly, companies that never allowed remote work post-COVID have faced far fewer issues asking staff to return to the office. Their teams never lost anything, to begin with.
Why are companies asking their teams back to the office?
Every company is different, but generally, they argue that people collaborate better in person, people feel a greater sense of belonging to their company if they meet more often, in-person teams innovate better and junior employees benefit from being surrounded by more senior team members, all resulting in better performance and better company outcomes.
And, they’re not wrong.
Studies support the idea that In-person teams do collaborate better - they have better psychological safety. In person teams do innovate better and people who go to the office have better career prospects than people who don’t.
Will working in an office make you happier?
Some companies are even claiming that returning to the office will make their teams happier, saying it’s in their best interests.
Again, there’s some truth to this.
Social connection is one of the fundamental drivers of happiness. Humans are social creatures and have evolved to be in groups, it is no wonder that loneliness is actually more dangerous than smoking 15 cigarettes a day. Working closely with others in a team can enhance your sense of belonging and make you happier.
However, if you tell that to someone who has been enjoying working from home for the last three years, don’t expect a positive response.
Working from home isn’t all good for your health
In July 2022 Malcolm Gladwell stated in an interview that “It is not in your best interest to work from home”. The internet went mad. “What does he know?” “He doesn’t have a 1-hour commute” etc.
The problem, according to research, is that Malcolm Gladwell is right. Despite the obvious immediate advantages of remote work, the long-term disadvantages, such as loneliness and lack of belonging, may outweigh them, and it actually may not be in your best interest to work from home.
So, if working from the office is so much better for us, why is everyone complaining?
This is at the heart of the remote versus in-person work debate: two essential psychological needs are clashing in a way we haven’t felt before. Our minds crave autonomy, while our hearts long for connection.
So which will make you happier, working at home or in an office?
In the long term, the social benefits from working in a team are likely to make you happier. In the short term, however, the feeling of lost autonomy will almost certainly make you unhappier.
Tip of the week:
If you’re an employer considering an RTO mandate, be empathetic with your staff. Although it may benefit them and the company in the long run, it also takes away something they value. Be considerate and understanding, as they may be upset. Work around their needs and provide as much autonomy as possible.
If you are an employee facing an RTO mandate, try to think beyond the immediate loss you will be experiencing. Be empathetic with your employer and, remember, long term it may just benefit you.
In all cases, work together to create a plan. If employees feel they have some control over how the RTO plan is executed they’re likely to feel a greater sense of autonomy, helping to reduce some of the negative feelings that may arise.
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