The Impact of Remote working on Employee Productivity in IT Sector of Pakistan: Employee Satisfaction as a Mediating Variable

Abstract

Purpose of the Study The purpose of this study is to examine the impact of Remote working on Employee Productivity within the IT sector of Pakistan, with a particular focus on understanding the mediating role of Employee satisfaction. By exploring the intricate relationship between Remote working, Employee satisfaction, and productivity, this research aims to identify key factors that influence these variables and provide actionable insights. The study seeks to determine whether Remote Working leads to increased or decreased productivity and how Employee Satisfaction can enhance or hinder this effect. Ultimately, the goal is to offer practical recommendations for IT companies in Pakistan to optimize their Remote Working policies and practices, thereby improving overall productivity and Employee satisfaction. Design and Methodology This study investigates the impact of Remote Working on EP in the IT sector of Pakistan, with a specific focus on Employee Satisfaction as a mediating variable. In light of the significant shift towards Remote Working due to the COVID-19 pandemic, understanding its implications on productivity and satisfaction has become crucial. Through combining quantitative surveys, data was collected from a diverse sample of IT professionals across Pakistan. The findings reveal that Remote Working has a complex relationship with productivity, where Employee Satisfaction plays a critical mediating role. While Remote Working offers flexibility and can enhance job satisfaction, challenges such as communication barriers, work-life balance, and technological issues can negatively affect productivity. The study underscores the importance of fostering a supportive remote work environment to optimize productivity outcomes. Practical recommendations for IT companies in Pakistan include enhancing virtual collaboration tools, 4 providing ergonomic resources for home offices, and promoting a culture of trust and accountability. This research contributes to the growing body of knowledge on remote work dynamics and provides actionable insights for policymakers and business leaders in the IT sector. Findings The study found that remote working (R) has a positive impact on Employee productivity (EP) in the IT sector of Pakistan, significantly mediated by Employee satisfaction (ES). Employees reported higher job satisfaction due to the flexibility and autonomy offered by R. This increased satisfaction translated into enhanced productivity, as employees were more motivated and better able to manage their work-life balance. Additionally, the reduction in commuting time and the ability to create a personalized work environment contributed to improved focus and efficiency. Overall, the findings suggest that R, when managed effectively, can lead to greater productivity in the IT sector through the enhancement of ES. Limitations: Sample Size and Representation: The study may have a limited sample size, potentially affecting the generalizability of the findings across the entire IT sector in Pakistan. The results may be more representative of specific companies or regions rather than the industry as a whole. Data Collection Method: Reliance on self-reported data from surveys or interviews can introduce biases such as social desirability bias or response bias. Employees may respond in a manner they believe is expected rather than their true experiences. Cross-Sectional Nature: 5 If the study uses a cross-sectional design, it captures data at a single point in time, limiting the ability to infer causal relationships or examine changes over time. Technological Variability: Differences in technological infrastructure and access to resources across various IT companies could affect the consistency of the remote working experience and, consequently, employee productivity and satisfaction. Originality: Focus on Pakistan’s IT Sector: This study uniquely addresses the impact of remote working within the context of the IT sector in Pakistan, an area that has not been extensively explored in existing literature. It provides valuable insights specific to this region and industry. Mediating Role of Employee Satisfaction: By investigating employee satisfaction as a mediating variable, the study offers a nuanced understanding of how remote working influences productivity. This approach helps to identify the underlying mechanisms and contributes to a deeper theoretical understanding. Post-Pandemic Context: Conducted in the aftermath of the COVID-19 pandemic, this research reflects contemporary shifts in work practices and provides timely insights into the evolving dynamics of remote working and productivity in the IT sector. Practical Implications: 6 The findings have practical implications for IT companies in Pakistan, offering evidence-based recommendations to enhance remote working strategies, improve employee satisfaction, and ultimately boost productivity. Contribution to Remote Working Literature: This thesis adds to the growing body of knowledge on remote working by providing empirical evidence from a developing country context, thereby enriching the global understanding of remote work practices and their effects on employee outcomes. Future Recommendations: Future research should explore the long-term effects of remote working on employee productivity in the IT sector of Pakistan, considering the rapid technological advancements and evolving work cultures. It would be beneficial to examine a broader range of mediating variables beyond employee satisfaction, such as work-life balance, mental health, and access to resources. Additionally, comparative studies across different industries and geographic regions within Pakistan could provide deeper insights. Implementing mixed-method approaches, combining quantitative and qualitative data, would enrich the understanding of nuanced employee experiences and organizational outcomes. Finally, investigating the role of company policies, management practices, and technological infrastructure in enhancing remote work productivity would offer practical guidance for businesses striving to optimize their remote work strategies.