Working from Home, the New Normal: A Look at the Benefits and Challenges of

Working Remotely – A Literature Review

By

Pureheart Irikefe
Department of Business Administration, Bingham University

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 CHAPTER 1
INTRODUCTION

1.1. Background of Study

The phrase “working from home” or “working remotely” usually means working from
home or at a place close to home, like a café, library or co-working space. Working from home
involves telecommuting. Telecommuting is an alternative to conventional arrangements by
which employees perform their job functions outside of the employer’s office (Ye, 2012).
Whilst working from home may seem like a contemporary scheme, working from home
was a norm long before corporate offices and mainstream commuting existed. Working from
home could be traced back to before the Industrial Revolution. Cowan (1976), averred that
before the Industrial Revolution, almost everyone worked from their homes—skilled
carpenters, potters, leather workers and the likes set up shop at their homes and sold their
products there. But since the Industrial Revolution and the advent of formal job titles and
corporate offices, working from home was termed “non-standard” (Quinlan, 2015).
In the 1980s, companies focused on telecommuting as a way of cutting costs—they
pointed to telecommuting as a means to reduce the expense of maintaining an office space
(Kurland & Bailey, 2003). Also, with the advent of the internet from the 1980s, working from
home has been growing in popularity due to technology and in most recent times, as a result of
social media. Albeit viewed as “non-standard,” working from home is somewhat prevalent in
developed countries and viewed with scepticism in developing and underdeveloped countries
(Gottlieb et al, 2021). With the most recent paradigm shift in the workplace due to a
coronavirus pandemic, most nations of the world have embraced working from home and
standardizing its status as a new normal (The CEO Magazine, 2020).
In December, 2019, a cluster of pneumonia cases from an unknown virus surfaced in
Wuhan, China. Based on initial laboratory findings, the disease was named Coronavirus
Disease 2019 and abbreviated as “COVID-19.” The COVID-19 was described as an infectious
disease known to cause illness ranging from the common cold to more severe diseases such as
Severe Acute Respiratory Syndrome (SARS). The COVID-19 outbreak has since spread to
almost all countries of the world. Nevertheless, there are ongoing efforts to curtail the further
spread of the infection which is almost entirely driven by human-to-human transmission
(WHO, 2020). The virulence and the infectiousness of the COVID-19 are so high that it led the
World Health Organisation (WHO) to declare it as a pandemic in March, 2020. The Centers for
Disease Control and Prevention (CDC) emphasized that the novel coronavirus (COVID-19)

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coded as “SARS-CoV-2” is a new strain of the virus that has not been previously identified in
humans, that SARS-CoV-2 is the virus that causes COVID-19 (CDC, 2020). WHO (2020),
recommended that the preventive measures for the virus include social distancing, wearing face
masks in public, ventilation and air-filtering, hand washing, covering one’s mouth when
sneezing or coughing, disinfecting surfaces, and monitoring and self-isolation for people
exposed or symptomatic. In retrospect, the main preventive measure of the virus is physical
distancing which prevents physical interactions. According to Bai and Marks (2021), the
COVID-19 pandemic may linger beyond 2021 and may even become endemic in some areas.
This has a huge impact on how businesses are conducted and has skyrocketed the relevance of
working from home vis-à-vis telecommuting.
Since remote working and telecommuting encompasses reduced physical contact, it has
become an increasingly popular topic due to the COVID-19 pandemic. Hitherto the outbreak of
the coronavirus and the mandatory lockdown that was implemented, companies had no option
other than to let their employees work from home. However, adapting to a home-work
environment was mostly new to most organisations and employees. As a result, several
organisations and employees found it challenging to work from home, while others prefer
working from home rather than in the office (Roose, 2020).
From the employee perspective, there are several advantages of working remotely. The
most obvious advantage of working from home is less time commuting to and from work every
day. Therefore, employees have more autonomy and flexibility. Although employees need to
be available to attend to clients and employees during the typical work hours. According to
Hamilton (2002), “Working remotely allows employees to focus on work when they feel
energized and efficient. Besides, it also provides flexibility to attend to outside issues and
family needs such as a doctor’s appointment or children activities.” In other words, it creates a
work-life/family balance. In return, this will lead to increased productivity and job satisfaction.
Although working from home can provide benefits such as more autonomy and
flexibility. It can create challenges for employees. One of the key challenges among employees
is isolation. The lack of face-to-face interaction between employees and managers can leave
employees feeling socially isolated and benighted. The feeling of isolation can manifest itself
in different forms. According to Hamilton (2002), “Job successes and achievements can seem
less exciting without others with whom to celebrate. Also, some work tasks can seem daunting
if the employee feels isolated from supporting resources (like a knowledgeable co-worker or
manager willing to provide feedback or advice).” Thus, employees may not have the zeal or the
motivation to optimally perform.

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 From the organisational perspective, the success of the organisation depends on having
engaged employees. A Harvard Business Review survey by Grenny and Maxfield (2017),
revealed that 52% of employees that work remotely oftentimes struggle with colleague
relationships and office politics, which impact their engagement. Whilst employees working
from home may save office or working cost for the organisation, it may have a negative impact
on employee engagement. Furthermore, remote employees demand a different management
style, and this presents an inherent need for organisations to equip their managers with the
appropriate toolbox to effectively manage remote workers (Larson, Vroman & Erin, 2020).
With the concept of working remotely becoming overly popular or in some cases
mandatory in contemporary times due to the coronavirus, individuals and organisations are
looking at the bright side to working from home. This includes individuals skipping the
annoying commutes and enjoying a better home-work balance and organisations cutting back
on office costs and overcoming geographical recruiting challenges. But this is not all the case
as researches have shown that individuals may suffer isolation and organisations may suffer a
lack of employee engagement (Hamilton, 2002; Grenny & Maxfield, 2017; Roose, 2020). This
presents a need for research to be carried out to look at the benefits and challenges of working
remotely.

1.2. Justification of Study

In the aftermath of the COVID-19 pandemic, as individuals and organizations around the
world are forced to telecommute, many people have been coping with the reality of operating
from home for long periods. Working from home can be seen as someone’s ability to work in a
flexible workplace, especially at home, through the use of technology to perform their work
duties. Working from home, however, may be advantageous for both the organization and its
workers.
Carrying out a study that seeks to examine the benefits and drawbacks of working
remotely may help employees and the organization to make better work decisions.
Furthermore, recommendations can be made which may provide managers with some ideas on
how to effectively manage remote workers. In retrospect, this research paper is intended to help
one understand the nature of working from home and its multifaceted implications. This study
will help discover the factors that influence the productivity of employees who work from
home, whether the influence of these factors is positive or negative.

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1.3. Statement of Problem and Research Questions
Before the advent of the COVID-19 pandemic, telecommuting was a scheme that existed
mostly in developed countries, and its existence was termed “non-standard” (Quinlan, 2015).
With the advent of the COVID-19 pandemic, working remotely became the only means for
several organisations to remain in business. The global lockdown during the worldwide first
wave of the COVID-19 outbreak increased the significance of working from home. Several
countries also embraced telecommuting as a “standard” form of working. However, whilst
some individuals and organisations have embraced the novelty of working remotely, others
struggle with adapting to the new normal of telecommuting or working from home.
Finding out the benefits and challenges of working from home for both the employees
and their employers is one of the most critical considerations for someone who seeks to work
remotely, as well as, organisations seeking to operate on the model. From extant works of
literature—the works by Ye (2012); Kurland & Bailey (2003); Hamilton (2002); Grenny &
Maxfield (2017); Roose (2020) and; Gottlieb et al (2021) focus on the concept of various
aspects of telecommuting, but none of these studies analysed the benefits and challenges of
working remotely to address the problem. However, this study analysed the benefit(s) and
challenge(s) of working from home or remotely.
The following set of questions reflects the thrust of this research:
i) What are the benefits of working from home or remotely?
ii) What are the challenges or drawbacks of working from home or remotely?

1.4. Objectives
The main objective of the study is to examine the benefits and challenges of working
remotely. Other specific objectives of the study are to:
i) Determine the benefits of working from home or remotely.
ii) Examine the challenges or drawbacks of working from home or remotely.

1.5. Hypothesis
The hypotheses given below were tested empirically to weigh the effect on the research
questions raised as against the research problems already stated:
H01: There are no benefits of working from home or remotely.
H02: There is no challenges or drawbacks of working from home or remotely.

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1.6. Scope of the Study
This research will focus on an investigation of the effects of employees working
remotely. The study will be conducted by extracting information from previous studies and will
not be limited to a specific country. Though, the United States of America (USA) seems to
have done extensive research on the effects of working remotely on both the organisations and
employee. The study will entail both exploratory and empirical research that will provide
insights as to the benefits and challenges of working remotely. This study will focus on the
impacts of job performance and engagement as it relates to working remotely.

1.7. Definition of Key Terms

 Benefit: Something that aids or promotes well-being for an individual or an organisation.
 Challenge/Draw Back: A matter or situation regarded as unwelcome and needing to be
dealt with and overcome.
 COVID-19: An infectious disease that started in Wuhan, China known to cause illness
ranging from the common cold to more severe diseases such as Severe Acute Respiratory
Syndrome (SARS).
 Pandemic: An infectious disease like COVID-19 that is geographically widespread;
occurring throughout the world.
 Telecommuting: Employment at home while communicating with the workplace by fax,
modem (via the internet) or phone.
 Working from Home: This usually means working from home or at a place close to the
home, like a café, library or co-working space. Working from home usually involves
telecommuting and it is synonymous with “working remotely.”

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 CHAPTER 2
LITERATURE REVIEW

2.1. Introduction
This chapter presents a review of the literature as it relates to working remotely from
home, the new normal. Working remotely is a contemporary issue regarding its impact on
employees and organizations. The main purpose of the literature review is to explore both the
advantages and disadvantages of employees working remotely from home by scrutinizing
several pertinent works of literature on this topic.

2.2. Conceptual Framework

2.2.1. Fundamentals of Telecommuting and Working Remotely: Historical Perspective
The new normal “working from home” is not exactly new as it could be traced back to
before the Industrial Revolution when almost everyone worked from their homes. At that time,
skilled carpenters, potters, leather workers and the likes set up shop at their homes and sold
their products there (Cowan, 1976). Since the Industrial Revolution and the establishment of
large corporations comes the need for persons to formally live their homes to take up work
duties at offices vis-à-vis workplaces. Nonetheless, the narrative soon changed when
organisations in the 1980s were seeking to cut costs and technology was available that supports
remote work (Kurland & Bailey, 2003). Also, the high traffic due to several workers
commuting to their workplaces at the same time, led to individuals considering the concept of
tele-commuting and working remotely (Nilles & Carlson, 2007). Working remotely takes away
the presence of office space as instead, work is being done from home regularly.
The term “telecommuting” often associated with the terms ‘working from home’ or
‘working remotely.’ Telecommuting is thought to be coined in 1973 by Jack Nilles, while he
was stuck in traffic in Los Angeles and seeing the pollution from the cars (Kurland & Bailey,
2003). The initial interest for telecommuting was driven to alleviate traffic congestion, reduce
energy consumption and pollution in densely populated areas. Nilles (1976), envisioned remote
offices located closer to where employees lived—with the payoff being employees who are less
stressed and more productive; employers saving money by forgoing expensive downtown real
estate and; an ecosystem that would benefit from a reduction in commuter traffic.
Whilst Jack Nilles tried to ignite a work-from-home trend 48 years ago, it is finally here
as the new normal (Berthiaume, 2020). With the advent of the COVID-19 pandemic, many

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businesses were forced to implement a “work from home” schema (telecommuting) to survive
or remain in business. At a time where “going to work” was no longer considered healthy,
organisations made alternative arrangements with employees for them to continue employment
at home while teleworking with clients and the workplace by fax, modem (over the internet) or
phone.

2.2.2. Benefits of Remotely Working for Employees

In the contemporary era where there is a coronavirus pandemic looming, employees are
safer and are less likely to contract COVID-19 while working remotely from home as less
contact is made with the public. Research done by Bonacani, Gallo and Scicchitano (2021),
stated that in the recent situation of the COVID-19 pandemic, working from home turn out to
be of great significance for a substantial share of employees since it symbolizes the only
alternative to both keep on working and lessen the risk of being exposed to the virus. Likewise,
working from home reduces or eliminates the risks of road accidents due to the limited need to
commute to the workplace (Saladié, Bustamante & Gutiérrez, 2020).
Another advantage of employees working remotely is the high possibility of being more
productive with little downtime, and higher satisfaction with the work accomplished.
According to Nuwer (2016), employees are more productive working from home as they take a
few breaks and for less time. Nuwer (2016), revealed that employees at home starts work on
time and were able to concentrate better than when they were in the office. The home-based
employees were also highly satisfied with their performance.
Additionally, studies have revealed that the new normal with employees working from
home allows them to keep their job by not getting laid off. Bonacani, Gallo and Scicchitano
(2021), stated that work from home has turned out to be of great significance since it permits
employees to remain working and thus obtaining incomes, employers to keep delivering
services and revenues, and largely controls infection spread risk.

2.2.3. Drawbacks/Challenges of Working Remotely for Employees

Although working from home has its advantages, it also has many drawbacks for the
employee. One of the major disadvantages is that workers may get disoriented because of
isolation and limited movements. According to research conducted by Kaushik and Guleria
(2020), people working from home are constrained to live in social seclusion and emotional
isolation and it affects their productivity.

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 Also, the opportunity for both in-person teamwork and in-person socializing with other
employees is taken away. Though both can be achieved virtually, the in-person encounter feels
more real. Persons who would have socialized physically, basically suffered less with mental
health depression (Diamond & Willan, 2020).

2.2.4. Benefits of Working Remotely for the Organization

According to Kaushik and Guleria (2020), several organizations, moving in the future are
looking at working from home as an important business pattern. The working from home
model is assisting some organizations and works in maintaining their businesses operating in a
constrained way. This allows the businesses to not go into foreclosure although profits are
limited.
In a study conducted by Bloom et al (2015), on employees of a Chinese company with
some employees working at home and some in the physical office space, it was revealed that it
is more profitable for companies to allow employees to work from home. Remote working
saves the company large sums of money on rent and utility cost. This showed an increase in the
company’s overall profit.

2.2.5. Drawbacks/Challenges of Working Remotely for the Organization

The new normal businesses which allow employees to remotely work from home may
lack teamwork which may pose added stress to the organization. Kaushik and Guleria (2020),
stated that collaboration is one of the major encounters that organizations face when they let
employees work from home. Effective teamwork goes further than just making sure that
employees log in for discussions and calls when they are expected to. Businesses will have to
make available a good collective structure, consisting of meeting tools, chat apps and data
sharing software which will be an additional cost to them. According to Larson et al (2020),
organisations to equip their managers with the appropriate toolbox to effectively manage
remote workers as telecommuting require a different management style.
Whilst working from home has become more prevalent in many countries because of its
benefits, due to its inherent disadvantages, some nations of the world and some organizations
still have the reluctance to embrace the model. According to Ford and Butts (1991), the
downside of operating from home is focused on the organization’s real lack of influence.
Organizations fear that employees may give priority to personal tasks over work, which further
reduces the control of the organization.

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 Organizations also have to bear the cost of facilitating training for employees working at
home. The employees will need to be thoroughly educated on cybersecurity measures as
remote working can create more opportunities for hackers and scammers to create scams and
schemes which can negatively affect the organisation. Miranda (2020), reported that malware
and ransomware sites especially in the name of COVID-19 have been developed by
cybercriminals and is targeting individuals and organisations. This also poses a high risk for
companies to have their confidential data exposed as employees are working from home.
Hitherto the foregoing, companies may need to bear an additional cost to ensure that their
servers and information systems are secured.

2.3. Empirical Review

This subsection reviewed the works of other researchers as well as their findings and
conclusions. It covered studies by other researchers who used empirical evidence—through
direct and indirect observation or experience that was analysed quantitatively or qualitatively.
This presented the opportunity for the researchers to identify and fill gaps left by previous
studies, and by so doing, enrich the knowledge of understanding of the benefits and challenges
of working remotely.
Allen, Golden and Shockley (2015), carried out an empirical review of existing research
on telecommuting to better understand what the scientific community know about
telecommuting and its implications. They brought to the surface some of the intricacies
associated with telecommuting research and shed insights into the debate regarding
telecommuting’s benefits and drawbacks. They sifted through divergent and conflicting
empirical works of literature to develop an overall sense of the status of their scientific findings
—to identify not only what is known about telecommuting, but also what must be learnt to
fully understand the “working remotely” work mode. Allen et al (2015), recommended that
there is a need to have a balanced mix of face-to-face and virtual contact for optimal
productivity; that trade-offs should be acknowledged and considered, such that organizations
must weigh the desire of individuals to work more flexibly; that a multifaceted approach is
needed and; that public policy can play a role in using telework as a tool to expand
opportunities. They concluded that a multidisciplinary, comprehensive understanding of both
the benefits and the drawbacks of telecommuting can be used to effectively shape and inform
organizational practices and public policy. Although Allen et al (2015), carried out a sound
deduction based on the empirical works of literature they reviewed, the ability to make sound
policy recommendations regarding telecommuting is dependent on the quality and scope of the

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data gathered. As such, triangulating their result with the analysis of primary data would have
provided better insight into their research.
Nakrošiene, Buciuniene and Goštautaitė (2019), investigated the relationships between
theoretically grounded telework factors and various individual and organizational outcomes of
telework (overall satisfaction with telework, perceived advantages of telework, career
opportunities, and self-reported productivity). They empirically tested ten telework factors that
may affect individual and organizational telework outcomes using the survey data of 128
teleworkers exercising different telework intensity and representing various sectors of the
Lithuanian economy. They found out that the bundle of theoretically selected variables
explained a significant part of the variance of telework outcomes. Reduced communication
with co-workers, supervisor’s trust and support, and the suitability of the working place at
home were found to be the most important telework factors impacting different telework
outcomes. Higher self-reported productivity was related to reduced time in communicating
with co-workers, a suitable working place at home, and the possibility to take care of family
members when teleworking. The study by Nakrošiene et al (2019), provided insights about the
management of telework in organizations by highlighting the factors that promote the
satisfaction, productivity, and perceived career opportunities of teleworkers. Unlike Allen et al
(2015), Nakrošiene et al (2019), carried out an analysis of primary data to triangulate their
reviewed theoretical framework. However, Nakrošiene et al (2019), used only one question as
a proxy to each of their research variables which may not be sufficient. As such, the reliability
of their data collection instrument may not be sufficient for a much detailed recommendation
on each of the variables as they reported. Nevertheless, combining each of the variables in
terms of telework factors as against telework outcomes may be sufficient for a broader
conclusion.
Jalagat and Jalagat (2019), carried out an investigative study to rationalize the concept of
remote working and its implications as supported by secondary data as the basis for analysis
and interpretation. They averred that even though remote working is popular in developed
nations like the United Kingdom, Germany and USA, for developing countries such as the
Sultanate of Oman, remote working is a new concept. From the secondary data they analysed,
they revealed that since the Government of the Sultanate of Oman passed a regulation
encouraging remote working from the beginning of 2017, of all 106,413 transactions that were
processed successfully during the first half of 2017, there was no evidence (formally or
informally) that remote working was utilized. Their findings generally revealed a conflicting
view on perceiving the concept of remote working as some studies affirmed by pointing out its

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advantages while others have outlined its disadvantages. Whilst Jalagat and Jalagat (2019) may
have carried out an extensive review of extant works of literature to make their deduction, the
choice of secondary data analysed (transcript of transactions) may not have been sufficient to
draw an adequate conclusion based on the objects of their research.
Flores (2019), undertook a study to know and understand the challenges of remote
working and its impact on workers. The research objectives aimed at determining the media of
communication between the company and its remote workers; the pertinent skills needed to be
a remote worker; the possible benefits and challenges of working remotely and; the difficulties
encountered by a remote worker. A descriptive research survey design was used for the study.
The respondents were 43 remote workers of Pearson People Services selected through the use
of a random sampling technique. The findings of Flores (2019), revealed that most of the
respondents find working independently and organizing work tasks as the most important skill
in working remotely. The majority of the respondents equally chose “having more flexible
hours” as the most beneficial factor when working remotely. Conversely, more than half of the
respondents find collaborating/communicating with others as the most challenging contributing
factor of remote working and finally work/home balance was selected to be the most difficult
part of being a remote worker. Even though Flores (2019), made a good representation of
pertinent issues associated with working remotely, using the percentage reporting technique as
a method of analysis may not be sufficient to test the objective of the research. At best, what
was done was data reporting and not analysis. A proper analysis needs to be carried out on the
data.
Gottlieb et al (2021), examined workers’ ability to work from home, as well as, their
propensity to work from home in developing countries like Brazil and Costa Rica. They use
worker-level Skills Toward Employability and Productivity (STEP) data covering the task
content of jobs to measure the ability to work from home. Their study revealed that while the
ability to work from home is low in developing countries, it exhibits significant heterogeneity
across and within occupations and worker characteristics. Their analysis indicates that fewer
than 10% of urban jobs in developing countries could be done remotely and various vulnerable
groups are less likely to work remotely, including workers in low-wage occupations, high
school dropouts and self-employed individuals. Their study equally showed that patterns of
actual work from home in data from Brazil and Costa Rica align closely with those predicted
based on STEP data, in terms of both overall levels and variation with occupation and
individual characteristics. Whilst Gottlieb et al (2021), carried out extensive research on
working from home in developing countries using a sample of 163,861 workers in Brazil and

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3,221 Costa Rica as proxies for developing countries, a comparison of the analysis of both
countries may not be too accurate. Using a Taro Yamane formula as developed by Yamane
(1967), on both populations would help equalize the difference to a large degree. Nonetheless,
the work by Gottlieb et al (2021) is very robust.
Even though all of the reviewed empirical works of literature centred on telecommuting
and working remotely, only Allen et al (2015) and Nakrošiene et al (2019), focussed their
research on the benefits and drawbacks of working remotely. However, whilst Allen et al
(2015) only made their deduction from reviewed empirical works of literature, Nakrošiene et
al (2019), in addition, tested primary data with an adequate statistical method. But then,
Nakrošiene et al (2019), used too few questions to test the objects of their research. Other
empirical works such as Jalagat and Jalagat (2019), Flores (2019) and Gottlieb et al (2021),
analysed working remotely in different levels but did not address working remotely with
regards to the benefits and the drawback. This is indicative of a knowledge gap that this study
sought to contribute to.

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