Flexible Work Arrangements on the Rise in Germany
Expanding Horizons of Remote and Hybrid Work
Remote work gains traction - One out of four make use of it. - Remote Work Setting Firmly Established - One Quarter of Workforce Utilizes Home Office
The German landscape has embraced the shift towards non-traditional work arrangements, with the rise of home office and hybrid models gaining momentum. The recent surge in remote work stands at an estimable 24.5% of the workforce, indicating a slight uptick from the 23.4% observed in August 2024[1].
Breaking Down the Sectors
- Service SectorThe service sector has spearheaded the remote work revolution, with a notable 34.3% of employees working remotely, contrasted with the 16.9% in manufacturing and 12.5% in retail sectors[1]. The sector's reliance on knowledge-based work has facilitated this ease of transition into remote work.
- Hybrid HarmonyAllowing for a harmonious mix of in-office and remote work, hybrid models have become increasingly popular, improving productivity while maintaining flexibility for employees[1]. These models optimize office space usage and contribute to balanced employee satisfaction [1].
Post-Pandemic Adaptation
Regardless of efforts to return to conventional office settings, recent data shows no decline in remote work[1]. Both employees and companies appreciate the value of flexibility, with companies fearing talent loss should they forsake flexible work options.
Nonetheless, challenges persist in sectors where remote work is less feasible, such as manufacturing and construction, which require a physical presence[1].
[1] Ifo Institute Data utilizing surveys conducted in February 2025 and August 2024.
- The community policy should address the growing need for flexible work arrangements, as the Ifo Institute data shows a 24.5% increase in remote work in Germany, with the service sector leading the remote work revolution.
- Employment policies, including those supporting remote work and hybrid models, could significantly boost productivity, considering the 34.3% remote work rate in the service sector and the observed improvement in productivity and employee satisfaction with hybrid models.
- The employment policy should also consider the challenges faced in sectors like manufacturing and construction, where remote work is less feasible, and provide solutions for maintaining a balance between flexibility and the necessity of a physical presence.
