New Report from Thumbtack Uncovers Hidden Costs of Return to Office for Businesses and Employees, Challenging CEO Mandates

Data reveals a majority of remote workers would require at least a 30 percent raise to consider returning to an office

SAN FRANCISCO--(BUSINESS WIRE)--Thumbtack, the technology company helping millions of people confidently care for and improve their homes, today released its 2024 Culture Predictions Report, which examines the pros and cons of in-office vs. remote work. The data overwhelmingly reveals that remote work is better for business, with employees reporting increased productivity, job satisfaction and mental and physical health. At a time when executives are issuing return-to-office (RTO) mandates, the report encourages leaders to rethink what makes their team and their company most effective.

The report, which is based on a market survey of remote-first professionals who previously worked in an office environment, shows why RTO mandates may prove a costly business decision. If the two-thirds of CEOs who predict there will be a full return to office by 2026 are right, businesses are likely to see impact to their bottom line, as over 50 percent of respondents require at least a 30 percent raise to return to the office and over a third (36 percent) said they would seek new job opportunities altogether if asked to return to the office.

Thumbtack’s Culture Predictions report examines what specifically about remote work is driving these positive outcomes:

• Heightened productivity: 74 percent of employees and 75 percent of senior leaders (VP and above) report heightened productivity in remote work environments, with avoiding burnout, improved ability to perform, less anxiety, and avoiding office politics cited as the biggest drivers.
• Focus on Career Development: 69 percent of employees actively pursue additional professional development opportunities, utilizing newfound flexibility to acquire new skills.
• Work-Life Integration: 81 percent of employees say they’re less likely to be forced to choose between family and career, feeling that they’re able to be both a good employee and good parent.

"Many leaders are making workplace decisions based on fear or lack of control instead of looking at the data and adapting their approach," said Marco Zappacosta, CEO of Thumbtack. "Virtual work drives powerful results for our business – helping us go further faster – while also alleviating challenges around recruiting, retention and employee engagement. The key is not looking over someone’s shoulder, but rather creating intentional ways of working, setting clear expectations, and holding one another accountable."

The findings are clear: work isn’t one-size-fits-all and employees have strong preferences for how and where they work. At Thumbtack, we’ve experienced this first-hand, seeing a 400 percent increase in the number of applications per job opening since implementing our virtual-first model.

"The success of a business depends on the success of its people, making it vital that leaders actually understand what helps their employees thrive,” said Jelena Djordjevic, VP of People at Thumbtack. “In the year ahead, companies that force employees back into the office will see decreased engagement and increased attrition. After getting a taste of the benefits of remote work, employees will seek out companies that provide the flexibility they desire.”

Virtual work also helps employees take better care of their physical and mental health, leading to greater engagement and performance at work.

• 76 percent are mentally healthier because of virtual work
• 67 percent are more comfortable taking time to go to therapy
• 73 percent are physically healthier
• And 39 percent would have to forgo exercise to return to in-office work, the most common sacrifice

Culture Predictions Index Methodology:

This sample of 1000 US adults (aged 22 to 65) was surveyed between October 5 and October 9, 2023. All respondents are (1) currently employed for wages in a professional or knowledge-based job and (2) shifted from working fully in-office to working at least mostly remote, confirmed by both consumer data and respondent self-confirmation. DKC Analytics conducted and analyzed this survey with a sample procured using the Pollfish survey delivery platform, which delivers online surveys globally through mobile apps and the mobile web along with the desktop web. No post-stratification has been applied to the results.

About Thumbtack

We’re Thumbtack, a technology company helping millions of people confidently care for and improve their homes. Our homeowners get personalized guidance on what to do and when to do it as well as who to hire from our growing community of 300,000 local service businesses. Every day in every county of the U.S., people turn to Thumbtack to complete small fixes, routine maintenance, and major improvements. With over 10 million 5-star projects and counting, we empower homeowners to take control and local businesses to grow. Accomplish more with Thumbtack.

For more information, visit Thumbtack's website.