Employees are saving on overpriced city-center lunch breaks, and employers are cutting costs on office supplies. So far so good, but according to a new Microsoft study, telecommuting might be hindering workers' creativity, getting in the way of innovative new ideas that businesses desperately need to succeed.

The research surveyed 9,000 managers and employees[1] across 15 European markets, and it starts with some good news. While at the start of the pandemic, many companies worried that remote working would be detrimental to productivity[2], the opposite trend has emerged: an overwhelming 82% of senior executives reported seeing productivity levels either hold steadily or increase as a result of telecommuting.

In parallel, business leaders see the economic value of extending work-from-home policies. More than half of the decision makers surveyed expect to save costs as they reduce their office footprint and business travel expenditures.

Businesses are also aware that establishing remote working as a part of company culture will hugely increase the appeal of their organization to prospective top talents, while at the same time acting as a major factor to retain their current employees.

Managers' enthusiasm for telecommuting is generally matched by employees, who see particular appeal in kissing strict office etiquettes goodbye. The majority (69%) of respondents in Microsoft's study cited dressing more casually as one of the top reasons that they enjoy working remotely, along with being able to personalize their workspace, or to work with their pet by their side.

Employees are also productive at home, as their days go undisturbed by casual interruptions, or overhearing colleagues on the phone in shared working spaces. Similar research carried out by Microsoft last year found that workers felt that 52% of their working day was wasted due to unnecessary disturbances; the number has fallen

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