One employee works from home. The other is remote. Same thing, right? Well, not exactly…
While remote and work-from-home arrangements share many similarities, there are several important differences. And the sooner you understand what differentiates the two models, the better positioned you’ll be to help your offsite employees work as productively as possible.
Let’s unpack the biggest differences between remote vs. work from home arrangements — along with insights to help you determine which model is best for your workforce.
What is remote work?
Remote work is an arrangement that allows employees to work from any work location, be it a coffee shop or coworking space. Remote workers are often dispersed across different time zones and thus have different work schedules. Companies that embrace remote work often employ digital nomads who frequently travel and don’t have one set location. They also hire people from a variety of locations, rather than limiting recruiting to geographic regions based on office locations.
What is a work from home arrangement?
With work-from-home arrangements, companies expect employees to work at a fixed location — typically a home office. In some instances, these policies are permanent. In others, they’re temporary. For example, employees who normally report to the office may be permitted to work from home on occasion due to inclement weather, traffic jams or health issues.
How remote work and working from home impact business operations
While remote work and working from home may sound similar, there are distinctions. Understanding the operational differences between these two work models is crucial for business executives looking to optimize workforce strategies.
1. Productivity
While more employees work from home than ever, the jury is still out on whether they’re more productive than their in-office counterparts. For example, one study indicates quieter home office conditions help boost productivity by an impressive 13%. But additional research indicates work-from-home employees are more likely to “slack off” and work in silos.
Meanwhile, remote employees — including those who work from locations other than home — face an increased risk of overwork and burnout. Studies show employees spend 50% more time on email, messaging and video calls than they did a decade ago, often in attempts to show they’re working just as hard (or harder) when they’re not at the office. As a result, the boundaries between work and personal time often blur, impacting work-life balance.
2. Company culture
The two arrangements also impact company culture in different ways. Remote work generally allows for a diverse range of locations, opening the business to a more expansive recruitment pool. And because remote companies have the flexibility to hire talent from various geographical locations, they often experience significant cost savings. This model not only opens doors to a wider array of skills and experiences but also promotes a culture of diversity and inclusion as organizations attract individuals from different backgrounds and perspectives.
Work-from-home arrangements, on the other hand, often lead to a more static work culture focused primarily on individuals’ home environments. While this streamlines some operations, it may limit your ability to tap into talented candidates looking for the flexibility and mobility of remote work policies.
3. Technology
Technology serves as the backbone for both remote work and work-from-home arrangements. Remote work software like Zoom, Slack, and Asana are vital for communication and task management in these environments. However, the effectiveness of these technologies varies between the two arrangements.
Remote workers often choose which tools best fit their workflows, while employees who work strictly from home might require more standardized solutions aligned with company policies. This distinction can lead to varying levels of satisfaction and efficiency. While remote workers feel empowered by autonomy, work-from-home employees experience frustration if the provided tools don’t meet personal productivity needs.
Communication and collaboration for remote vs. work-from-home employees
Understanding how remote and work-from-home arrangements impact team members’ ability to communicate and collaborate is critical to effective management.
With remote teams, employees are frequently spread across various time zones. This means it’s up to managers to foster remote collaboration. Training team members on virtual communication, establishing clear communication guidelines and setting distinct goals all play a role — overlook just one of these factors and you face the possibility of disengagement.
While the advantages of working from home shine a little brighter in this area, this model also comes with unique challenges. One experiment found that work-from-home teams generate 15% to 20% fewer ideas than teams that meet in person. There are often too many distractions — laundry, family members, pets — to stay focused. For this reason and others like them, work-from-home team managers must be very deliberate about improving accountability among employees who work from home.
The future of work: remote or work from home?
So, will remote work or work from home emerge as the long-term solution? Some analysts say remote work will solidify its place in the business landscape, driven by the benefits of flexibility and broader access to talent. Others claim work-from-home models are more viable long term. The key is to identify which model works best for your unique workforce.
The best of both worlds — when to go hybrid
While some businesses are opting for either remote work or work-from-home arrangements, many are exploring a mix. This is where hybrid work models come into play. These arrangements allow employees to choose where they work on most days, often with the option to come into a nearby office. They’re typically defined by flexible schedules, allowing employees to set work hours based on when they’re most productive.
Hybrid policies have become wildly popular in recent years — for good reason. They account for the diverse needs of different employees, making for a more adaptable, agile workplace — one where teams collaborate in-person when needed while still enjoying the flexibility of remote and work-from-home arrangements. Companies benefit from the advantages of various settings, allowing for in-person collaboration when necessary while providing the flexibility that remote work offers.
In fact, hybrid work is so popular most employees prefer it. According to Gallup, six in 10 employees with remote-capable jobs prefer a hybrid arrangement. And 29% of hybrid employees (as well as 64% of full-time remote workers) are “extremely likely” to look for new jobs if their current employers stop offering flexible work options. Meanwhile, 90% of surveyed employees say working from home has positively impacted both physical and mental health.
Remote vs. work from home: a detailed recap
The differences between these two types of flexible work arrangements are nuanced but important. Here are the most critical to consider.
| Remote Work | Work From Home | |
| Work Location | Employees have the freedom to work from any geographic location. | Employees work specifically from home offices. |
| Flexibility | Employees typically have the flexibility to work where and when they’re most productive. | Employees work from set locations, and usually at set times. |
| Productivity | Employees tend to get more done thanks to the flexibility of remote work, but also risk burnout from blurring the lines between work and personal life. | Employees claim to be more productive from home, but also face numerous distractions. |
| Team Interactions | Team members are often distributed across various time zones, which impacts communication and collaboration. | Employees may face distractions in their home environment that makes it difficult to collaborate as effectively as they would in person. |
| Tools and Tech | Employees typically have a say in which digital tools work best for remote setups. | Employees tend to have a set of preset tools based on company policies. |
| Company Culture | Organizations have flexibility to hire from a wide talent pool, regardless of location. | Organizations are limited to a more static work culture defined by home environments. |
Remote vs. work from home: How to choose
Ultimately, choosing between remote and work-from-home arrangements comes down to what works best for your unique workforce. Each organization has its own set of employee preferences. The key is to identify where, when and how your teams work best — and build your model from there.
Best way to do that? Use workforce management software. ActivTrak comes packed with features designed to reveal what your people need to be as productive as possible. It automatically collects and analyzes employee activity data to show you:
- If employees are more productive when working from home, remotely or at the office
- Which technology team members actually use — and which tools they don’t
- How employees spend their time at work and what’s causing distractions
Get started today with a free account to measure productivity and compare remote vs. work-from-home trends.
