Remote Work Stays Despite Employer Discontent in Service Industry

remote work stays despite employer discontent in service industry.jpg Business

In a post-pandemic world where the concept of work has been drastically redefined, the tension between employers and employees over remote work is intensifying. A recent survey by the Federal Reserve Bank of New York reveals that while service industry workers are clocking in over 20% of their hours remotely, employers would prefer to slash this percentage down to 15%. This tug-of-war over the work-from-home model is not just confined to the Empire State but is a reflection of a broader conflict unfolding across the labor market.

The survey underscores a significant shift in the power dynamics between employers and employees, catalyzed by the global pandemic. Employees, having experienced the perks of remote working, are keen on retaining this flexibility. Conversely, employers are pushing for a return to the traditional office setup, citing detrimental impacts on team-building and communication. The current labor market, with job openings outnumbering the unemployed, has forced employers to make some concessions on remote work, adding another layer of complexity to this unfolding narrative.

Tug of War: Employers and Employees Battle Over Remote Work

A survey conducted by the Federal Reserve Bank of New York reveals a significant conflict between employers and employees in the service industry regarding remote work. It indicates that while employers prefer to reduce remote working hours from the current 20% to 15%, employees, having experienced the benefits of telecommuting during the pandemic, wish to maintain the existing status quo.

Remote Work: A Double-edged Sword

The survey’s results reflect a broader trend in the labor market, where the number of job postings significantly outweigh the unemployed. Despite the perceived drawbacks of remote work, such as hampered team-building and communication, employers have been compelled to adapt to the trend to attract and retain talent. On the other hand, employees prefer remote work due to factors like saving time and money on commuting and having a more flexible schedule.

A Shift in Power Dynamics

The future of remote work relies heavily on the power dynamics between employers and employees, states Jaison R. Abel, head of urban and regional studies at the New York Fed, along with other researchers. This statement is backed by a nationwide study conducted by the Pew Research Center which found that as of February, 35% of all jobs that could be performed remotely were being done by people working remotely full-time—five times as much as before the pandemic.

Balancing Act

While businesses gave mixed results on remote work productivity, with 30% saying it boosted output and 40% saying it reduced it, a consensus was reached on the benefits and drawbacks of remote and in-person work. Despite acknowledging the advantages of remote work in terms of recruitment and retention, businesses expressed concerns over the detrimental impact on team building, communication, and workplace culture.

The Future of Work

The WFH Research poll, a project by researchers from the University of Chicago and other academic institutions, found that U.S. workers would prefer to work just over half of all days from home. However, they also acknowledged that working in the office provided better opportunities for collaboration.


The tug of war between employers and employees regarding remote work is a reflection of the evolving dynamics in the labor market. While employers are keen on returning to pre-pandemic office routines, employees, having tasted the benefits of remote work, are not willing to give them up without a fight. This tussle is likely to shape the future of work, with compromises and innovative hybrid work models emerging as potential solutions.

The pandemic has undoubtedly altered our perception of work and the workplace. As we move forward, the challenge lies in balancing the benefits and drawbacks of remote and in-person work, ensuring both employee satisfaction and business productivity.

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