Marcus is excited to share some research and analysis on productivity and the future of work from our friends at Goldman Sachs Global Investment Research. You can read their original article here.
When the pandemic began, many of us had to adjust to new ways of working. While you were becoming a video-call pro and sound-proofing your home office, companies were rushing to find innovative ways to get things done with less interaction and fewer people.
At the beginning, it seemed like this “new work normal” would be short-lived. But our colleagues at Goldman Sachs Research say there are compelling reasons to believe pandemic-driven practices – including remote work and process automation – are sticking around.
It helps that a lot of us actually like working from home, part or full-time. And automation can help workers take on more interesting work. But one major reason these practices are still with us is that they helped boost productivity during the last two years.
Our GIR colleagues called out three important facts that shed light on the future of our productivity and business practices:
1. We gained a lot of productivity in those two years. Sometimes a picture really is worth a thousand words:
2. We went big with changes to the workforce and company business models. The sizeable productivity lift helped balance out Covid-related worker shortages and even paved the way for higher profits. Those wins helped convince companies to invest more and change more.
3. Gains were concentrated in industries where digitization and WFH (work from home) were most effective. Industries that could quickly get these two trends up and running showed the biggest productivity gains.
All of this company investment and productivity success leads Goldman Sachs economists to expect recent efficiency gains, and the workplace trends that support them, to stay with us for a while.
Successful trends stick around. That’s not a surprise. So, even now, long after lockdowns have gone away, close to a third of positions include some time working from home. A recent study by career site Ladders Inc. estimates as many as 20 million office jobs (over 25% of the total) could become fully remote in the next few years.
The digital solutions that helped companies survive the pandemic have spread far and wide. We now think of many of them as ordinary parts of our daily lives, including:
So, we’ve seen how WFH and automation trends help businesses. But they can also help you improve your own future, especially with a little planning. Based on this Goldman Sachs productivity research, here at Marcus we’ve thought about four ways you can shape your career and financial life around the possibilities in the new workscape.
This article is for informational purposes only and is not a substitute for individualized professional advice. Individuals should consult their own tax advisor for matters specific to their own taxes and nothing communicated to you herein should be considered tax advice. This article was prepared by and approved by Marcus by Goldman Sachs, but does not reflect the institutional opinions of Goldman Sachs Bank USA, Goldman Sachs Group, Inc. or any of their affiliates, subsidiaries or division. Goldman Sachs Bank USA does not provide any financial, economic, legal, accounting, tax or other recommendation in this article. Information and opinions expressed in this article are as of the date of this material only and subject to change without notice. Information contained in this article does not constitute the provision of investment advice by Goldman Sachs Bank USA or any its affiliates. Neither Goldman Sachs Bank USA nor any of its affiliates makes any representations or warranties, express or implied, as to the accuracy or completeness of the statements or any information contained in this document and any liability therefore is expressly disclaimed.
Join our Marcus social media community, where we share content and inspiration to help improve your financial health. See you there!