Remote work may not be what makes employees happy, study finds

Remote work may not be what makes employees happy, study finds Gaby Clark Scientific Editor Andrew Zinin Lead Editor For years, remote work has been viewed as one of the most important drivers of employee satisfaction. New research suggests that assumption may be giving remote work too much credit. A study published in the journal Management Science found that while remote employees often report higher job satisfaction, much of that advantage disappears when researchers account for factors such as workplace culture, trust in management, communication, and opportunities for professional development. The findings suggest that what makes employees happy may have less to do with where they work and more to do with how they experience their workplace. The study, "How Do Different Remote Work Arrangements Impact Employee Job Satisfaction and Retention?," was authored by Christos A. Makridis of Arizona State University, Gallup, and the University of Nicosia, and Jason Schloetzer of Georgetown University. "We found that the positive association between remote work and job satisfaction weakens substantially once you account for other factors that shape the workplace experience," said Makridis. "Factors such as feeling appreciated at work, having strong communication with and trust in management, and having access to professional development opportunities can be just as important, if not more so, than simply having the opportunity to work remotely." The researchers analyzed survey data from nearly 165,000 employees across more than 73,000 U.S. firms between 2020 and 2023, covering a wide range of remote, hybrid, and in-office work arrangements. At first glance, remote workers appeared to be more satisfied with their jobs. But after adjusting for compensation, occupation, demographics, and workplace characteristics, the satisfaction advantage associated with remote work largely disappeared. The researchers uncovered another surprising finding. After accounting for workplace conditions and compensation, employees working remotely were somewhat more likely to say they were considering leaving their employer within the next six months than comparable employees working fully onsite. "One way to look at this is that remote employees may be more aware of external opportunities," said Schloetzer. "When work is less tied to a specific location or office environment, employees may feel less connected to a unique workplace culture and more comfortable exploring other opportunities, even when they are generally satisfied with their current role." The study also found that the benefits of remote work are not distributed evenly across all employees. Remote arrangements tended to generate greater satisfaction among workers in roles requiring less real-time collaboration and teamwork. Employees reporting weaker relationships with their managers also tended to experience greater satisfaction when working remotely, suggesting that distance can sometimes reduce workplace friction. Ultimately, however, remote work itself was a relatively weak predictor of both job satisfaction and employee retention when compared with broader organizational factors. Employees who felt appreciated, trusted management, experienced effective communication, and viewed compensation practices as fair were significantly more likely to report higher satisfaction and stronger intentions to stay with their employer. The findings arrive as organizations continue to debate return-to-office policies and hybrid work arrangements. The research suggests that employers may be asking the wrong question. Rather than focusing exclusively on where employees work, organizations may see greater benefits by investing in the workplace conditions that make employees want to stay in the first place. The study suggests that the future of employee satisfaction may depend less on location and more on leadership, culture, and trust. Publication details Christos A. Makridis et al, How Do Different Remote Work Arrangements Impact Employee Job Satisfaction and Retention?, Management Science (2026). DOI: 10.1287/mnsc.2024.07017 Journal information: Management Science