Ifo Institute Reports Home Office Work Model Remains Popular in Germany

The trend of remote working, which gained momentum during the COVID-19 pandemic, has become a staple in many German workplaces. According to a recent survey by the Ifo Institute in Munich, nearly one in four employees continues to work from home at least part of the time. As of February, the percentage of workers engaged in home office arrangements stood at 24.5%, a slight increase from 23.4% in August 2024.

Despite a gradual push from companies to bring employees back to the office, the data does not indicate a significant decline in the home office model. Ifo researcher Jean-Victor Alipour commented on the findings, emphasizing the stability of remote working arrangements. He noted that current trends do not show any statistical evidence supporting a retreat from home office practices, asserting that such arrangements have firmly established themselves in the workforce.

Home office work is particularly prevalent in the service sector, where 34.3% of employees opt to work from home. In comparison, 16.9% of workers in the manufacturing sector and 12.5% in retail have adopted similar practices. The construction industry lags behind, with only 4.6% of its workforce working remotely.

Research from the United States suggests that economic pressures may lead some companies to curtail remote working options, although this practice does not necessarily correlate with enhanced employee productivity. Alipour warns that such measures could inadvertently result in increased turnover, as employees may seek positions that offer more flexible working conditions.

Moreover, hybrid work models, which combine in-office and remote work, have been shown not to detrimentally affect productivity levels. Coordinating in-office days can foster better personal interactions among employees, thereby enhancing overall productivity. While this may reduce flexibility for workers, it does not automatically diminish the amount of home office time available.

As companies continue to navigate the balance between in-person and remote work, the data highlights the growing acceptance of home office arrangements in the everyday working life of many Germans. This trend reflects a significant shift in workplace culture, suggesting that remote work is likely to remain a viable option for the foreseeable future.