Remote workers most likely to be laid off first in recession: study

Remote workers will most likely be the first to go amid a looming recession, according to a new report.

Beautiful.ai, a presentation software company, surveyed 3,000 managers in the United States about the future of the digital workplace and what the future holds for remote workers.

The survey found that 60% of managers said remote employees were very likely to be fired first if downsizing became necessary.

“Even with the shift to a digital workplace and the elimination of overheads like large office spaces and catered lunches, many companies have frozen hiring or been forced to lay off employees due to the recession. “, we read in the report.

He adds that employees working in a hybrid remote situation could be at greater risk than those working in a fully remote team, due to overhead costs like physical office space.

“Seventy percent of managers agree that a successful digital workplace that limits the need for physical office space is more recession-proof than a company with all of its employees in the office,” says The report.

The COVID-19 pandemic has seen businesses adapt to a new normal as employees transition from working in the office to working from home.

According to the latest statistics from March 2021, around five million Canadians were working remotely, representing more than 30% of the workforce in Canada. That’s a huge jump from 4% of remote employees in 2016, according to Statista.

Although this study covers the United States, Beautiful.ai CEO Jason Lapp says remote workers in Canada will also be impacted by a looming recession.

“We know management decision makers need to understand the pulse of budgeting, managing hybrid teams, and employee resources in the face of economic uncertainty,” he said in a statement to the Daily Hive.

This can be seen in managers’ attitudes towards a remote work environment. According to the survey, 62% say management is more difficult in a remote workplace.

Only 38% think management is easier with more employees working remotely.

“Managers in Canada and the United States need to understand that the future of remote work allow employees the freedom of work where they want to live and to provide them work– a life balance that makes them happy, engaged and more productive employees.”

This report comes as countries around the world are taking advantage of the rise in the number of remote workers.

Digital nomad visas are now being offered by holiday destinations like Indonesia and Portugal.

All data found in this report is derived from a Beautiful.ai survey conducted online via the Pollfish survey platform. A total of 3,000 American adults in leadership positions were surveyed.

This survey was conducted over a period of five days, and all respondents were asked to answer all questions as honestly as possible and to the best of their knowledge and ability.

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