Home Office: Most German Firms Plan to Keep Options Open
Economy / Finance

Home Office: Most German Firms Plan to Keep Options Open

A recent survey indicates that the prevalence of remote work arrangements in Germany is expected to remain stable, with a potential for further expansion in the coming two years. The Leibniz Centre for European Economic Research (ZEW) published the findings this week, detailing employer perspectives on the ongoing adoption of home office practices.

The study revealed that a significant majority of companies – 80% in the information and communication technology (ICT) sector and approximately half in manufacturing – currently allow employees to work remotely at least one day a week. Larger enterprises, those with 100 or more employees, exhibit notably higher rates of remote work adoption, reaching 88% in manufacturing and 98% in the ICT sector.

While around 10% of companies offering remote work intend to scale back or eliminate these options, a considerably larger percentage – 29% in ICT and 34% in manufacturing – plan to expand their existing remote work capabilities and extend access to a greater proportion of their workforce. Furthermore, a notable proportion of companies not currently offering remote work are considering its introduction, with 21% in ICT and 9% in manufacturing expressing plans to do so.

Employers generally view remote work favorably in terms of employee satisfaction, with approximately two-thirds reporting a positive impact. Hybrid models, combining remote and on-site work, are also seen as beneficial for talent acquisition, with over half of companies indicating they ease the recruitment of skilled workers.

However, opinions are more divided when it comes to employee retention. Around half of companies believe remote work positively impacts retention, while 31% anticipate negative effects.

Internal communication and teamwork are frequently cited as areas where remote work poses challenges, with roughly two-thirds of companies perceiving a disadvantage. This concern potentially contributes to the fact that 41% of companies foresee potentially negative effects on innovation capabilities. Fewer than 10% anticipate positive effects on either internal communications or innovation through hybrid models.

Views on productivity are also mixed. Approximately one-third of companies fear negative effects on productivity, while around 20% foresee benefits. The remaining companies believe hybrid models will have no significant impact on productivity.

The survey, conducted in June 2025, encompassed around 1,200 companies in Germany, spanning the manufacturing sector and the information and communication technology industry, which includes ICT businesses, media providers and knowledge-intensive service providers.