Determinants and Effects of Remote Work Arrangements: Evidence From an Employer Survey

ABSTRACT Remote work arrangements are compelling examples of an organization's ability to utilize digital technology. This study analyzes data from a representative survey of Atlantic Canadian employers to evaluate three phenomena: how remote work evolved during the recent COVID‐19 pandemic; the factors influencing these changes; and the impact of these changes on business outcomes. Our findings suggest that urban firms, technologically advanced companies in certain highly skilled industries, and firms offering greater flexibility for remote work were most likely to enhance remote work practices during the pandemic. For the average firm, an increase in the share of remote work correlated with higher organizational productivity, improved employee performance, and greater new product/service innovation. The primary downside was heightened management complexity. Variations were observed along industry and provincial lines.