Remote work and firm productivity: which UK firms benefit and why
Abstract
Working from home (WFH) has become a standard work arrangement for employees in advanced economies. Existing aggregate statistics show that the share of workers engaged in remote work has roughly doubled since 2019, with UK levels remaining among the highest in Europe. The latest figures from the ONS confirm that around 40% of the UK workforce worked from home at least some of the time during the week in 2025. The expansion of remote work has created a growing tension between employees, who value the flexibility it offers, and some employers, who are pushing for a return to in-person arrangements Yet there is limited evidence on what firm characteristics and strategies are more conducive to benefit from remote work, and what factors are instead more conducive to productivity losses. To shed light on these patterns, this Report presents new evidence based on a survey developed and disseminated in collaboration with Confederation of British Industry (CBI) Economics. The survey covers 801 UK firms (Appendix A documents the survey methodology and sample) and examines the extent of remote and hybrid work adoption, its perceived impact on performance, innovation and workforce wellbeing, as well as the main opportunities and challenges in remote work adoption. The evidence that emerged provides new insights into how flexible work practices are shaping business outcomes and what this implies for future business and policy decisions.
Fields of Study & Subjects
Work-Family Balance Challenges
Employee Performance and Management
Labor Law and Work Dynamics
Publication details
- Journal / source
- London School of Economics and Political Science Research Online (London School of Economics and Political Science)
- Publication date
- 4 March 2026
- Language
- EN