The debate over remote work shows little sign of disappearing.
While many large employers have spent the past two years increasing return-to-office requirements, new research suggests that requiring employees to spend too much time in the office could have unintended consequences for both workers and businesses.
A recent study by Xuan Lu and Yulin Yu found that neither fully remote work nor full-time office attendance appears to deliver the best outcomes.
Instead, the researchers found that employees who worked remotely for roughly two days per week experienced the most favourable balance between career progression and employee retention.
The findings arrive at a time when organisations across the world continue to reassess workplace policies amid growing tensions between employee preferences and management expectations.
Published in 2025, the study examined how different levels of remote work influence two key business outcomes: promotion rates and employee turnover.To conduct the research, Lu and Yu analysed large-scale workplace activity data from a company employing more than one million workers.
Rather than relying on surveys or employee opinions, the researchers examined actual behavioural and employment data to understand how varying levels of remote work affected career outcomes.
The analysis focused on the relationship between remote work frequency, promotion likelihood, and employee retention. By studying real workplace data across a large employee population, the researchers were able to identify patterns that may not be visible in smaller studies. The results revealed a surprisingly consistent trend.
As remote work increased, employee turnover initially declined before beginning to rise again at higher levels of remote work. Promotion opportunities followed a similar pattern. Employees initially benefited from greater flexibility, but promotion likelihood eventually started to decrease when remote work became too frequent.
According to the researchers, the optimal balance occurred at approximately two remote working days per week.At this level, employees experienced lower turnover risk while also achieving the highest promotion rates.
The findings challenge arguments from both sides of the remote work debate.Advocates of fully remote work often argue that employees perform best when given maximum flexibility.
On the other hand, some executives have pushed for a full return to the office, citing concerns around collaboration, culture, and productivity.
The study suggests that neither extreme may be ideal.Instead, a hybrid approach appears to provide enough flexibility to improve employee satisfaction while still maintaining the visibility, collaboration, and networking opportunities that contribute to career advancement.
The researchers also found important differences between employee groups.Male employees appeared to receive greater promotion benefits from remote work than female employees.
Support-function employees experienced fewer promotion gains than workers in core business roles. Leaders and managers also appeared to face greater challenges when working remotely, with promotion likelihood declining more rapidly as remote work frequency increased.
These differences suggest that a one-size-fits-all workplace policy may not be appropriate for every organisation or employee group.For South African businesses, the findings are particularly relevant.
Many companies continue to balance employee demands for flexibility with concerns around productivity, collaboration, and organisational culture. At the same time, South Africa’s long commuting times, traffic congestion, and transport costs create additional incentives for flexible work arrangements.
For workers travelling daily between areas such as Pretoria, Midrand, Sandton, and Johannesburg’s broader business districts, even one or two days of remote work per week can translate into significant savings in both time and money.
The study suggests that hybrid work may not simply be an employee benefit. When implemented correctly, it may also represent a strategic business decision that improves retention while preserving career development opportunities.
That could become increasingly important as companies compete for skilled employees in a labour market where workplace flexibility has become a major factor in recruitment decisions.
The broader message from the research is that workplace policy should be guided by evidence rather than assumptions.While remote work remains a highly polarising topic, the data suggests that the most effective solution may lie somewhere between the office and home.
For businesses looking to balance productivity, talent retention, and employee wellbeing, the future may not be fully remote or fully office-based. It may simply be hybrid.
Source Information
Study Title: Balancing Turnover and Promotion
Outcomes: Evidence on the Optimal Hybrid-Work Frequency
Authors: Xuan Lu and Yulin Yu
Journal: arXiv Working Paper
Year: 2025
