After the pandemic’s surge, Latin America now ranks as the region with the lowest adoption of remote work, only contributing 10% to its workforce model.
This contrasts sharply with Europe, the Middle East, and Africa (EMEA), where remote work makes up 29%, outpacing on-site work’s 17%, according to a report by the multinational real estate services firm JLL.
Following EMEA, the strongest adopters of remote work are Asia-Pacific (APAC) at 25% and North America at 24%, as per the “Future of Work: Work Schemes in Latin America” report.
In Latin America, on-site work contributes 19%, but the hybrid model dominates at 71%, based on JLL’s data up to the third quarter of 2023.
This makes Latin America’s hybrid model usage the highest compared to other regions, where it’s adopted by 54% in EMEA, 44% in APAC, and 41% in North America.
This trend could stem from balancing a strong culture of on-site work and addressing urban challenges like public transport and traffic congestion, the report suggests.
The survey, part of the report, questioned about 300 companies across 13 Latin American countries on their work models.
The most popular hybrid model in the region involves two on-site days and three remote days, preferred by 29% of companies, especially those with over 750 employees, multinationals, and firms in finance, insurance, and tech.
Shifting Work Models in Latin America
Brazil leads, with 45% of companies using this model.
The second favorite involves two remote days and three on-site days, adopted by 18% of companies.
According to JLL, these models, which were less common pre-pandemic, have now doubled in relevance, surpassing the previously popular model of one remote day a week.
Post-pandemic, the share of fully on-site work dropped from 66% to 19% in Latin America, with variations by country and industry.
In Mexico, 31% of companies prefer on-site work, while Argentina has seen the biggest shift away from it, both before and after the pandemic.
The on-site model is more common in industries like manufacturing, logistics, construction, and real estate.
Typically, employers mandate fully on-site work in 85% of cases, while schemes allowing two or more remote days result from mutual agreement in at least 50% of instances, indicating a worker demand for flexibility.
Amid changing business dynamics, half of the companies are still determining their optimal work model, highlighting the challenge of forecasting future office space demand, JLL notes.
Developers and investors in the region’s main office markets remain cautious, as seen in the slowdown of new inventory production, decreased transaction volume, and increased capitalization rates for this asset type.
Among companies planning a model shift, 3% aim for a more remote setup, while 12% will increase on-site workdays.
Of these, 70% currently use hybrid models with two to three remote workdays.
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error
Read More from The Rio Times