Home working linked to productivity gains for French firms
Télétravail is more common since the Covid-19 pandemic
Reduced commuting time, greater autonomy and quieter working environments contributed to the rise in productivity
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French companies that have adopted home working (télétravail) for at least two days a week experienced a small but measurable rise in productivity, according to state statistics agency Insee.
Part of the gains stemmed from firms being able to rent smaller offices and purchase fewer computers.
Since Covid-19, when many employees were forced to work entirely from home, two days at home and three in the office has rapidly become formalised in a large number of firms, with numerous unions approving the new working arrangements.
According to Insee, a 10% increase in home working corresponded on average to a 1% rise in productivity during the 2019-2022 period.
However, companies that rented offices separate from their production facilities before the pandemic benefited more. They were more likely to continue home working arrangements after the Covid-19 lockdowns.
By subsequently renting smaller offices, they found that a 10% increase in home working boosted productivity by 2.7%.
However, Insee said the move to smaller, less expensive offices only partially explained the productivity gains.
Another factor it identified was a general reorganisation of work as large numbers of employees started doing their jobs remotely, which improved efficiency.
Insee also cited reduced commuting time, greater autonomy and quieter working environments as possible contributors to higher productivity.
The report noted that productivity gains stopped when the proportion of work done at home rose from 20% to 25% or more, with increased organisation costs a likely cause.
An analysis of economic sectors found that transport firms benefited the most, with 3% productivity gains, followed by administrative services with 2% gains.
Industrial companies saw gains of around 1.8% while construction, commerce, IT and scientific and technical companies were all under 1%.
Insee said its research was prompted by ongoing debate over home working in France.
Supporters argue that it makes companies more attractive, and improves working conditions and staff commitment. Critics say firms suffer from a lack of cohesion and coordination when employees do not see each other each day in the office.
Productivity boost not shared by all companies
Insee noted that the improved productivity seen in companies with high levels of home working was not shared by everyone.
Financial firms, which were not included in the study, were particularly unlikely to benefit. Compared with other sectors, they are more likely to own the buildings they occupy and to operate commercial property divisions, both of which were hit as clients moved into smaller, cheaper office space.
The Insee study, produced with help from Dares, a state agency specialising in employment data, compared various research projects covering 6,600 companies of all sizes.
Productivity is usually measured by comparing output or profits with labour costs.
France has traditionally ranked highly in international productivity comparisons, although this has weakened in recent years. This is partly due to the rapid growth in apprenticeship schemes, which has increased the number of salaried workers spending time in training rather than directly contributing to output.
