Nea Rapo Work-life balance in remote working conditions Vaasa 2022 School of Management Master’s thesis in Economics and Business Administration International Business 2 UNIVERSITY OF VAASA School of Management Author: Nea Rapo Title of the Thesis: Work-life balance in remote working conditions Degree: Master of Science in Economics and Business Administration Programme: International Business Supervisor: Vesa Suutari Year: 2022 Sivumäärä: 103 ABSTRACT: Koronapandemian alettua etätyöstä tuli uusi normaali monille työntekijöille ympäri maailmaa. Perinteisestä toimistosta kotitoimistoon siirtyminen oli nopea muutos, johon organisaatiot ja työtekijät eivät olleet täysin varautuneet. Muutos on vaikuttanut työntekijöihin monin eri ta- voin. Yksi merkittävä muutos liittyy siihen, miten työtekijät ovat pystyneet tasapainottelemaan työtä ja vapaa-aikaa kotoa käsin. Tämän tutkimuksen tavoitteena on selvittää, kuinka etätyö vai- kuttaa työntekijän työn ja vapaa-ajan tasapainoon ja kuinka näiden kahden tasapainoa voidaan johtaa. Tutkimuksessa käsitellään etätyön vaikutuksia työn ja vapaa-ajan tasapainoon, minkälai- sia haasteita ja hyötyjä tilanteesta on aiheutunut, kuinka työtekijät voivat johtaa omaa työn ja vapaa-ajan tasapainoaan, sekä miten esimies sekä organisaatio voivat tukea tässä työntekijöitä. Tutkimuksessa työn ja vapaa-ajan tasapainoa tarkastellaan rajateorian näkökulmasta. Teorian mukaan työ ja vapaa-aika ovat toisistaan erillään olevia osa-alueita, jotka ovat vuorovaikutuk- sessa keskenään. Tutkimus on toteutettu laadullisena tutkimuksena ja tutkimuksen haastattelut toteutettiin puolistrukturoituina teemahaastatteluina. Tutkimukseen haastateltiin seitsemää työntekijäasemassa toimivaa henkilöä eri aloilta ja maista. Lisäksi osalla henkilöistä on esimies- taustaa. Tutkimuksen löydökset osoittavat, että etätyö vaikuttaa työn ja vapaa-ajan tasapainoon sekä sen johtamiseen monella eri tapaa. Etätyöstä on tullut normaali työjärjestely pandemian aikana ja työntekijän näkökulmasta sen vaikutukset työn ja vapaa-ajan tasapainoon ovat olleet pääosin positiivisia. Tutkimuksen tuloksissa ilmeni, että työ ja vapaa-aika ovat merkittävässä vuorovai- kutuksessa etätyöskentelyn aikana. Näiden osa-alueiden rajojen hämärtyminen koettiin ajoittai- sena haasteena. Kuitenkin tutkimuksessa korostui työn ja vapaa-ajan erottamisen merkitys, jotta toivottu tasapaino näiden kahden välillä voidaan säilyttää. Tutkimuksen tulokset osoitta- vat, että etätyössä työn ja vapaa-ajan tasapainon hyödyt ovat suurempia kuin haasteet. Haasta- teltavien mielestä itsensä johtamisen taito ja työkalut ovat merkittävin tapa ylläpitää työn ja vapaa-ajan tasapainoa. Lisäksi esimiehen ja organisaation tuella on merkittävä rooli työntekijän työn ja vapaa-ajan tasapainon ylläpitämisessä. Tutkimuksen löydökset osoittavat, että avoin kes- kustelu esimiehen kanssa, monipuoliset käytännöt ja linjaukset työntekijän työn ja vapaa-ajan tasapainoon liittyen, sekä investoinnit työntekijän hyvinvointiin organisaation puolesta ovat tär- keitä tekijöitä, jotta työntekijän työ ja vapaa-ajan tasapainoa voidaan tukea paremmin. KEYWORDS: Remote work, Covid-19, work-life balance, self-management, managers support, organizational support 3 Contents 1 Introduction 6 1.1 Research question and objectives of the study 10 1.2 Structure of the thesis 11 2 Remote work 14 2.1 Definition of remote work 14 2.2 The impact of the Covid-19 pandemic on remote work 16 2.3 Benefits of remote work 18 2.4 Challenges of remote work 20 2.5 International perspective of remote work 23 3 Work-life balance 26 3.1 Nature of work-life balance 26 3.2 Definition of Work-life balance 28 3.3 Work-life balance theories 30 3.3.1 Border theory 30 3.3.2 Boundary theory 32 3.3.3 Segmentation theory 32 3.3.4 Spill-over theory 33 3.3.5 Compensation theory 33 3.3.6 Instrumental theory 33 3.3.7 Conflict theory 34 3.4 Challenges and benefits related to work-life balance 34 3.4.1 Challenges 34 3.4.2 Benefits 35 3.5 Management of work-life balance 36 3.5.1 Employees’ self-management of WLB 36 3.5.2 Supporting employee WLB from the role of the manager 36 3.5.3 Supporting employee WLB from the role of the organization 37 3.6 Work-life balance in remote work 38 3.7 Summary of the theoretical framework 40 4 4 Methodology 43 4.1 Research philosophy 43 4.2 Research approach and strategy 44 4.3 Research method 45 4.4 Data collection and sample 47 4.4.1 Sample 49 4.5 Data analysis 51 4.6 Trustworthiness of the study 52 5 Results and Analysis 54 5.1 The impacts of remote work on work-life balance 54 5.2 Work-life balance challenges and benefits in remote work 61 5.2.1 Challenges 62 5.2.2 Benefits 65 5.3 Management of work-life balance 68 5.3.1 Self-management 68 5.3.2 Managers’ role in supporting employee work-life balance 70 5.3.3 Organization’s role in supporting employee work-life balance 73 6 Conclusions 77 6.1 Summary of the key findings 77 6.2 Theoretical contributions 81 6.3 Managerial implications 83 6.4 Limitations of the study 84 6.5 Suggestions for future research 85 References 87 Appendices 102 Appendix 1. Interview questions 102 5 Figures Figure 1. Summary of the key findings 81 Tables Table 1. Structure of the thesis 12 Table 2. Definitions by different scholars of work-life balance 29 Table 3. Practical ways managers can use to help employees improve WLB 37 Table 4. Participants 50 6 1 Introduction Ways of working and living have changed drastically in post-industrial economies in the last decade. Technological developments have enhanced work beyond traditional offices and working hours, more women are working, expectations of parenthood are changing, and mothers are working more. Moreover, organizations are offering flexible working arrangements in order that employees can change the location, time, and schedule of work, to be suitable for their needs (Field & Chan, 2018). As information and communication technologies (ICTs) have developed in their capabil- ities, and with greater availability of high-speed internet, remote working has grown as a new manner of work in the past several decades (Allen et al., 2015, p. 59). For example, in Europe, an average of 5.4% of employed persons worked from home on a regular basis in 2019 (Eurostat, 2020). However, this number has escalated after 2019. The Covid-19 pandemic has required millions of people worldwide to be remote workers (Wang et al. 2020). The acceleration of flexible and digital work arrangements is now on a scale un- discovered before. Due to the Covid-19 pandemic, businesses have not been able to operate in the usual way (Bank of England, 2021). Companies have had to let people go to cut costs and sta- bilize the income of the company. Furthermore, the pandemic has slowed economic ac- tivities which has consequently affected the labor market (Eurostat, 2021). Organizations have faced uncertainty and challenges that have shaped the work environment rapidly. Nonetheless, economic recovery and other signs of adaptation to the situation have been gaining steam (Best, 2021). Even though remote work is not a new trend, measures are taken to prevent the virus from spreading. Hence, confining employed people to their homes has sped up the re- mote work practices in organizations. The switch from a traditional office to remote work has been quite sudden and many people are working for the first time remotely without any preparation. However, throughout the several waves of the pandemic, adaptation, 7 and acceptance of remote work have become the norm (Best, 2021). Normally, this type of flexible working manner requires time to prepare, design, and adapt for the whole organization to assure better work-life balance and support employees’ productivity. However, the Covid-19 outbreak has considerably forced a remarkable number of indi- viduals and organizations to adapt to remote working (Al-Habaibeh et al. 2021). Accord- ing to Foss (2020), the pandemic will have multiple complex consequences for organiza- tional design. Overall, the pandemic will likely lead to more widespread use of workers who are more loosely connected to the organization, and more remote work (Foss, 2020). The post-pandemic situation will show how the taken measurements will be used in the future (Best, 2021). Employees have been put in a situation where they try to maintain the same level of productivity without having the necessary skills to succeed in working from another place than the office (Al-Habaibeh et al., 2021; Galanti et al., 2019). Despite the job re- sponsibilities being the same whether the work is conducted from the office or from home, there are several factors that change when a rapid shift in working habits trans- formed. Factors such as job performance, flexibility, and work-life balance influence the employees’ ways of working. Remote work has gotten immense attention from research- ers because of its potential for extensive benefits at the individual and organizational levels (Allen et al., 2015). Therefore, employees’ adjustments to a remote working envi- ronment in the “new normal” are important and should be further studied. Because multipolar work and remote teams have become common in all types of organ- izations it is important to understand the impact of those on the employees. Remote working has had positive effects on the employees such as flexibility and increased per- sonal time (Diab-Bahman & Al-Enzi, 2020). Furthermore, most of the studies show that flexibility of work arrangements is seen as a positive factor (Diab-Bahman & Al-Enzi, 2020; Ferreira et al, 2021; Mulki et al., 2009). Flexibility has been identified with work auton- omy. Employees can outline patterns that suit them best which leads to higher produc- tivity. From the perspective of the organization, remote working can be beneficial for 8 workers' attachment to the organization, job satisfaction, and enthusiasm for the work. It is crucial that employers support the employees to enhance work-life balance and the organization of remote work (Lonska et al., 2021). This way, employers can help employ- ees increase productivity, increase job efficiency, strengthen loyalty, create higher moti- vation towards work, and improve employees’ health. Even though there are multiple benefits to working remotely for employees, there are risks and challenges that might affect job satisfaction. Haapakoski et al. (2020, p. 152- 153) state that the risks and challenges concerned matter such as feeling lonely, worry about career development, and remote leadership. Additionally, Vilkman (2016) states that the biggest challenges in remote work have to do with a sense of community, trust, interaction, and working habits. An increase in remote work and reduction of social mobility means a critical change in the organization of their lives for many employees. The balance between work and pri- vate life can be difficult to maintain. In the article of Woodard (2021) it is presented that recent research has shown that 29 percent of remote workers struggle to maintain a proper work-life balance and have expressed higher stress levels. Some studies noted that not having defined work-life boundaries can be difficult for employees (Felstead & Henseke, 2017; Galanti et al., 2021; Vartiainen, 2021). Furthermore, studies have shown that one of the biggest challenges with remote work is maintaining work-life balance (Bulińska-Stangrecka et al., 2021; Wang et al., 2020). To emphasize this Aczel et al. (2021) stated that the key challenge in this new work arrangement is to find strategies to bal- ance the demands of work and personal life. Increased flexibility can quickly lead to blurred roles of work and personal life and multitasking. Despite benefits, remote work often contributes to conflict of roles and disturbance of work-life balance. Work-life balance (WLB) is a topic of interest for researchers and practitioners regarding supporting employee well-being (Jones et al., 2013; Kinnunen et al., 2015; Wagner et al., 2014, as cited in Bulińska-Stangrecka et al., 2021). Previous research has demonstrated 9 that work-life balance creates positive energy at work and has a positive impact on em- ployees’ well-being (Russo et al., 2016, as cited in Bulińska-Stangrecka et al., 2021). Fur- thermore, it has been indicated that work-life balance is linked to turnover intentions and job engagement (Jaharuddin & Zainol, 2019, as cited in Bulińska-Stangrecka et al., 2021). Moreover, research has shown that remote working and other types of flexible work arrangements admit work-life balance to be retained and help the progress of a balance between professional and private life (Bulińska-Stangrecka et al., 2021, p. 60). As it has been stated earlier, the balance between work and personal life is difficult to maintain. Some of the reasons for a poor work-life balance are increased responsibilities at home, working longer hours, and increased responsibilities at work. Therefore, it can be challenging to split the time between work and other important aspects of life. Alt- hough it is a daily challenge to achieve a work-life balance, employees can manage the boundaries and find ways to balance demands between professional and personal life in remote work. (Heathfield, 2021; Sanfilippo, 2021). Work-life balance in remote work is not only the concern of the employee. Organizations and managers have a critical role in work-life balance as well. Work-life balance is a sub- stantial aspect of a healthy work environment. In order to have a healthier and more productive workforce, employers need to create a work environment that prioritizes work-life balance. However, promoting work-life balance is a challenge to employers since it is difficult to advocate a healthy lifestyle, both emotionally and physically, with- out giving up employee productivity. Organizations can support work-life balance with programs and policies that help employees maintain a better balance between work and personal life. Furthermore, managers’ role in supporting employees’ work-life balance is essential. Managers can help their employees to maintain work-life balance by updating and recreating workplace culture (Kohll, 2021). According to the study of Mulki et al. (2009, p. 65), it was stated that there has been limited research on work-life balance as it relates to remote work arrangements. Wang 10 et al. (2020) disclose that scholars have had enough sufficient evidence to understand the challenges that remote work has. However, remote work as a practice has gained a new meaning during the pandemic and it should be investigated how working remotely has shaped the experience of work-life balance. A comprehensive understanding of both benefits and challenges of remote work and its relation to work-life balance is needed to help employees maintain boundaries and job satisfaction and additionally to shape organizational practices. There is a clear gap in the literature about the work-life balance in remote working con- ditions. Particularly, because of the Covid-19 pandemic when most of the employees have moved to remote work for the very first time and because remote work practices seem to evolve in the new normal and in the future. In this study, the impacts of remote work on work-life balance will be investigated. Therefore, both the negative and positive effects of WLB will be thoroughly explored. Furthermore, how employees can self-man- age work-life balance and the employer’s role in balancing work and private life are im- portant aspects that this study will investigate. 1.1 Research question and objectives of the study The aim of the present study is to understand better how remote working conditions affect work-life balance of employees. The study will focus on employees who work re- motely or partly remotely or have been working remotely, due to the Covid-19 situation. This study will analyze employees’ views on what factors affect positively and negatively their work-life balance. Self-management of the balance between work and personal life will also be covered. In addition, also managers’ and organizations’ roles will be analyzed to understand how they can support their employee’s work-life balance. In addition, it will be studied what kind of support employees want to get from their employers related to WLB, and which organizational practices could help them to maintain better work-life balance remotely. Therefore, the following research question was formatted. 11 1. How do remote working conditions affect the work-life balance of employees and how can work-life balance be managed? Clear and transparent objectives help to answer the research question. The following objectives were chosen to achieve the purpose of the study: • What kind of impacts do remote working conditions have on work-life balance of employees? • What kind of benefits and challenges does work-life balance face in remote work- ing conditions? • How can employees themselves as well as managers and organizations manage the work-life balance of the employees? 1.2 Structure of the thesis The thesis is divided into six chapters. The thesis starts with an introductory chapter which includes the background of the study, research gap, research questions and ob- jectives, and structure of the study. The theoretical chapter that follows the introduction presents an overview of the current literature on the topic. The theoretical chapter is divided into two different chapters. The first chapter of the theoretical review focuses on remote work, the impact of the Covid- 19 pandemic on remote work, the benefits, and challenges of remote work, and the in- ternational perspective of remote work. The second chapter of the theoretical review covers work-life balance from the aspects of nature of work-life balance, definitions, the- ories, challenges, and benefits of work-life balance, management of work-life balance, work-life balance in remote work, and lastly summary of the theoretical framework. 12 The fourth chapter, methodology, includes research philosophy, research approach, re- search strategy, and research method of the study. This chapter introduces data collec- tion, data sample, and data analysis. Finally, the trustworthiness of the study is discussed. The fifth chapter is the key chapter of the thesis and introduces the analysis and results of the empirical findings. The results will be presented according to the following themes: the impact of remote work on work-life balance, work-life balance challenges and bene- fits in remote work, self-management of the work-life balance, and managers’ and or- ganizations’ role in supporting employee work-life balance. Finally, the last and sixth chapter concludes the thesis with a summary of the findings. This chapter provides a summary and key findings of the study, followed by theoretical and managerial contributions, limitations of the study, and suggestions for the future. Table 1. Structure of the thesis Introduction chapter ● Background of the study ● Research gap ● Research questions and objec- tives ● Structure of the thesis Theoretical chapter 1: Remote Work ● Definition of remote work ● The impact of Covid-19 pandemic towards remote work ● Benefits of remote work ● Challenges of remote work ● International perspective 13 Theoretical chapter 2: Work-Life Bal- ance ● Nature of work-life balance ● Definitions ● Theories ● Challenges and benefit of work- life balance ● Management of work-life balance ● Work-life balance & remote work ● Summary of the theoretical framework Methodological chapter ● Research methodology Results and analysis chapter ● Analysis of interview data Conclusion ● Summary and key findings ● Theoretical contributions ● Managerial contributions ● Limitations of the study ● Suggestions for future research 14 2 Remote work The aim of this chapter is to introduce the literature review about remote work. The purpose of the literature review is to present a theoretical background based on existing literature that is in accordance with the research objectives of the study. This chapter provides an overview of the following topics: definition of remote work, the impact of the Covid-19 pandemic towards remote work, benefits of remote work, challenges of remote work, and international perspective. Each topic will be separately discussed next. 2.1 Definition of remote work Remote work is a practice that is increasingly adopted by organizations around the world (Mulki et al., 2009, p. 63). According to Remote Year (2021), it is a working style that grants professionals to work outside of the traditional office environment in places such as homes, coffee shops, or coworking spaces. It is based on the concept that work does not need to be done from a specific place to be executed successfully (Remote Year, 2021). Similarly, remote work arrangements are not dependent on time or place, and based on their characteristics they could be done at the office base (Vilkman, 2016). Remote work can be practiced full-time or part-time depending on the arrangements made with the supervisor (Gajendran & Harrison, 2007, p. 1524). Working from a place other than company premises or a location other than an office can be described with numerous names (Vartiainen, 2021). The names that are most commonly used include “remote work”, “telework”, “mobile work”, “distance work”, and “telecommuting”. However, there is a dispute with these terms because the terms often represent different conceptualizations and overlap (Allen et al., 2015, p. 42-45). This makes it difficult to review the scientific findings. Remote work as a term is mainly con- sidered more extensive than telecommuting and can implicate any form of work not ad- ministrated from the office (Vartiainen, 2021). According to both Vartiainen (2021) and Allen et al. (2015, p. 45), it is important to be clear and specific about the term that is 15 being used to ensure consistency. Hence, in this study, the term that will be used is re- mote work. According to Peek (2021), remote work has become more common during the last dec- ade. To emphasize, Butler (2021) states that the epoch of technology has fastened the transition and increased remote work’s popularity. Moreover, Gajendran and Harrison (2007, p. 1524) state that digitalization has enabled diversifying of work arrangements for employees and that remote work has become comprehensive practice. Previously, remote work has held a bad reputation because employers assumed that their labor force would be distracted too easily at home, where no one could keep an eye on them (Peek, 2021). Nowadays, companies are trying to find a balance between all-remote work and hybrid-remote operations (Choudhury, 2021). Furthermore, some companies are more accepting of the practice while others are more resistant (Peek, 2021). The resistance has to do with insignificant investments in telework tech to support workers and a lack of productivity fear (Peek, 2021). In order to get a more comprehensive picture of remote work, the notion of remote workers will be shortly presented. According to the article of Carreras and Valax (2010), a remote worker is an employee who works outside the organization during an alterna- tive period or regularly. It usually requires good telecommunication between the organ- ization and customers via the internet, phone, or emails (Vartiainen, 2021). Remote workers’ work time differs from the workers at the office. They are usually more flexible, do not count breaks or meals, and might work longer hours because it is harder to iden- tify the line between work and free time when working remotely (Carreras & Valax, 2010). In the future, remote work will increase, and remote work options and flexibility will become more comprehensive (Gupta, 2021). According to Castrillon (2021), 70% of the workforce will work remotely at least five days a month by 2025. Technology companies such as Twitter and Facebook are forerunners with remote work plans (Castrillon, 2021). 16 Other reasons for remote work becoming more common in the future have to do with productivity, digitalization, technological developments, and companies wanting to cut down costs (Peek, 2021). 2.2 The impact of the Covid-19 pandemic on remote work The Covid-19 pandemic is a critical disaster that has affected organizations, employees, customers, and communities globally all over the world. It also has economic and social impacts that are still growing (Mahmud et al., 2021, p. 1-2). Remote work is a way of working that can be utilized as a pandemic response (Ferreira et al., 2021, p. 70). Based on the prevailing circumstances of the Covid-19 pandemic, to maintain business activi- ties, almost all companies must rely on remote teams (Ferreira et al., 2021, p. 70). How- ever, remote work has not been implemented in all sectors and occupations because of the characteristics of work (Lund et al., 2021). The characteristics include factors such as using specialized machinery, work that must be conducted on location, and jobs that require collaboration (Lund et al., 2021). Explicitly, existing knowledge of remote working has mostly been caused by a context in which remote working has not been practiced to a great extent by all or most of the workers within an organization (Wang et al., 2020, p. 17-18). Prior to the pandemic, among employees that worked full-time at office jobs approximately five percent worked remotely. In the new normal, the percentage is settling at 20-30 percent (Levanon, 2020). According to Galanti et al. (2021, p. e426) in the EU, the number of people working from home (at least partly) has increased from 12% before the pandemic to nearly 50%. None- theless, in America, the amount of remote work has increased rapidly because of the pandemic. Before the pandemic, around 5 percent of Americans worked for more than three days from home. Since the pandemic, the number has increased to nearly 37% of Americans working fully remotely (Yang et al., 2021). Levanon (2020) states that the big- gest impact of Covid-19 may be remote work. 17 Prior to the pandemic, remote working was not a broadly used practice, it has been a “luxury for the relatively wealthy” such as white-collar workers (managers, professionals, and executives) and higher-income earners (Wang et al., 2020, p. 17). To emphasize this, Levanon (2020) argued that before the pandemic, employees were less likely to work remotely for various reasons. The reasons included not having the space or equipment to transition to remote work and documenting working hours. Because of this, the re- mote working experience was only little for most of the workers prior to Covid-19. Fur- thermore, companies were not prepared for supporting this practice. Therefore, remote working became the “new normal”, almost overnight. (Wang et al., 2020, p. 17). The pandemic forced millions of people to stay home, which has led to work and private life intertwining regardless of sex or age (Galanti et al., 2021, p. e427). This rushed and un- expected transition has been hard on employees who have had to switch from working at a traditional office to remote work (Diab-Bahman & Al-Enzi, 2020, p. 909-910). In today’s prevalent pandemic situation, the traditional workplace has been replaced with a home base, where workdays take place. Companies have had to redefine the way work can be performed and where it can be done from. Remote work has given employ- ees the possibility to work safely and adhering social distance, within the safety and health regulations. When this type of change happens in the work environment factors, such as work culture, collaboration, and daily routines are being transformed drastically. The remote works role is important for business continuity during the pandemic and companies need to revamp remote work regulations so that the work can be organized and successfully done (de Lucas Ancillo et al., 2020, p. 2304-2309). Technology has become a major factor during Covid-19. It enables interaction that is ag- ile at work and makes the work environment more collaborative (de Lucas Ancillo et al., 2020, p. 2305). Covid-19 has accelerated the digitalization process for many companies. New practices and strategies are required in this economic and business environment to stay competitive (LaBerge et al., 2021). Due to the lockdowns and global restrictions video meetings and online business has increased rapidly. Organizations have been able 18 to adapt to new working styles with the help of software availability and broadly availa- ble internet infrastructure. Innovation and usage of advanced technologies have become a survival tool in the Covid-19 pandemic (Al-Habaibeh et al., 2021, p. 101). It is unlikely that companies will fully return to their pre-Covid-19 work plans. It is more likely that companies will convert to some type of hybrid work model, where both re- mote and office work are included (Yang et al., 2021). To emphasize this de Lucas Ancillo et al. (2020, p. 2302) state that the future workplace will be more comprehensive, novel, and evolved. To create a good balance, both business and employees’ needs must be considered. To conclude, to be able to have an efficient and successful business and happy employees it is important for companies to consider which model works for their operations best. It is inevitable that the concept of the workplace will change. 2.3 Benefits of remote work In today’s world working away from the traditional workplace is an option that is increas- ing (Aczel et al., 2021, p. 1). One of the factors for the increase has been the Covid-19 outbreak. For the first time and without any preparation many employers and workers had to suddenly switch to remote work (Galanti et al., 2021, p. e426). Sudden organiza- tional changes have had both benefits and challenges for employees and companies (Choudhury, 2021). From these perspectives, the experience and adaptation to remote work have been different (Mulki et al., 2009, p. 64). In this chapter, the focus will be on the benefits of remote work. From the perspective of employees, there are several benefits. It needs to be highlighted that there are different motivations that individuals have for wanting to do remote work (Allen et al., 2015, p. 54). According to Allen et al. (2015, p. 54), the fundamental motives are personal life and productivity. Yet another benefit is flexibility which is valued by the employees (Mulki et al., 2009, p. 64). It allows employees to juggle between work, time with friends, and hobbies, which results in stress reduction and an improved work-life balance (Buffer, 2019). Furthermore, factors such as autonomy and schedule control 19 allow individuals to efficiently control resources (Allen et al., 2015, p. 51). Productivity is another benefit of remote work. According to Farrer (2020) employees who work re- motely are an average 35-40% more productive than their co-workers who work from the office. Another factor that the employees value highly is the opportunity to work from anywhere (Molla, 2019). This gives the employees an opportunity to decide where they can work. Additionally, employees with families have enjoyed remote work because it leaves more time to spend with family (Molla, 2019). Lastly, one of the benefits for employees is saving time from commuting to work since they don’t have to do it when they work remotely. Not having to commute to work also saves money and it helps the environment because people drive less (Allen et al., 2015, p. 54). For organizations, remote work benefits include lower real estate costs, higher produc- tivity among employees, lower turnover rates, and greater job satisfaction (Mulki et al., 2009, p. 64). According to the article by Bohrer (2021), the average office space cost per worker is approximately $18,000. By centralizing, relocating, and letting employees work remotely, companies can save a lot of money and employees are also happier and more retained because of work flexibility. Global Workplace Analytics advocates that compa- nies can save per year per employee around $11,000 (Bohrer, 2021). Companies such as IBM have reduced their real estate costs by $50 million (Bohrer, 2021). Remote work practices also reduce sick leave absences which reduces total costs for the organization (Vilkman, 2016). Besides lower real estate costs, the benefits for the organization can be seen from the perspective of the workers. Employees are more productive and work longer when they work remotely. Employees want to build trust with their employers so that they do not lose their remote work privilege. Moreover, if the employee has a proper workspace at home there are fewer interruptions, and they can concentrate on their work better. Hap- pier employees are also another benefit. If the employees are happy while working re- motely it increases their performance and productivity. The reasons for employees being happier working remotely have to do with spending extra time with loved ones and 20 hobbies, freedom to manage their schedule, and lack of commute. Besides remote work- ers being happier, they are also healthier. Remote workers have better physical and men- tal health due to increased flexibility and reduced stress than their counterparts at the office (Poetker, 2021). Employee retention is one of the biggest challenges for companies. Because employees change jobs for many different reasons such as life planning and location, workplace flexibility is one of the crucial factors in retaining employees. Providing flexible work ar- rangements helps to adjust to life changes without having to change jobs (Poetker, 2021). In addition, Vilkman (2016) elaborated that having the possibility to work remotely part- time or full-time attracts applicants more because it enables a better combination of free time and work. The talent pool also gets bigger when remote work opportunities are offered (Poetker, 2021). Successful companies will find ways to adjust to the differences and provide specialized mentoring, training, and broad opportunities for social and business interactions with both remote and traditional employees (Mulki et al., 2009, p. 67-68). Vilkman (2016) elaborates that work is changing and remote work is seen as a future asset for companies. By successfully implementing remote work in organizations’ operations, it will have a positive effect on the results and quality of work, and on the reputation of the company. 2.4 Challenges of remote work Even though from a company and employee perspective there are multiple benefits of remote work, the challenges of it need to be highlighted to get a full picture of how it impacts organizations and employees. It is important to discuss the underlying issues and risks of remote work because it will be a permanent option for the workforce in the future (Meier & Traber, 2021). The negative aspects of remote work include isolation, knowledge sharing, communication difficulties, and less defined work-life boundaries (Allen et al., 2015; Choudhury, 2021; Mulki et al., 2009). These and some other down- sides will be discussed next. 21 Vilkman (2016) states that it is challenging to build a functional team and to create real co-operation between the team remotely. Building a team is easier if the people in the team are occasionally in the same place. Additionally, it takes more effort, work, and planning to build team spirit with a team that is fully or partly remote (Vilkman, 2016). Another challenge that is related to remote teams is communication. In-person commu- nication is eliminated when people work remotely. However, there are many ways for employees to keep in touch with their co-workers and supervisors, despite that many employees might find it difficult to communicate without the human element (Clark, 2021). According to Clark (2021), remote workers find it hard to build trust and be per- sonal when they meet someone new over the internet, and it is hard to read people’s emotions. This makes it also harder to get to know the co-workers. Because communi- cation is more difficult remotely it also makes knowledge sharing harder. Knowledge sharing is a process in which knowledge distributes from one to another within compa- nies (Allen et al., 2015, p. 53). Knowledge sharing is critical to organizational effective- ness and to social capital development (Allen et al., 2015, p. 53). Because remote work- ers cannot tap one another’s shoulders to ask for help or to ask questions companies need to pay attention that important information gets around and that remote workers have the tools to do their job remotely (Choudhury, 2021). The more there is infor- mation for the remote workers the more they feel like they are part of the company community. Rating and reviewing employees that work remotely is yet another challenge (Choudhury, 2021). The metrics used to evaluate remote workers cannot be the same as those used for the employees who work from the office. It is critical to rethink and identify key per- formance metrics that are suitable for remote work (Castrillon, 2021). Even though the criteria would be clear and transparent it is still more difficult to evaluate remote workers than people who work from the office (Choudhury, 2021). To support the evaluation managers should give feedback continuously to remote workers (Castrillon, 2021). An- other challenge is compensation for the workers who work remotely. Contract type, the 22 experience of the worker, location, and tasks being performed are factors that compa- nies need to consider when setting the compensations for workers. In addition, another key issue with compensation is paying wages. Whether the company should pay remote workers in the currency of a local organization or incorporated one affects the con- sistency of wages because of the exchange-rate fluctuations (Choudhury, 2021). In the review from Mulki et al. (2009, p. 64), the biggest challenges of remote work were overcoming work isolation, compensating for the lack of visibility, finding the right work- life balance, and compensating for the lack of face-to-face communication. Firstly, work- place isolation impacts organizational commitment, turnover rates, and job satisfaction. Isolation perceptions develop when remote workers lack support and sense absence from managers and co-workers. The feeling of isolation is more common among employ- ees who live by themselves. Remote workers who feel isolated miss traditional office because of its social environment. Secondly, lack of visibility affects the career promotion opportunities and contributions to the organization’s success. Losing out on opportuni- ties and not being recognized are factors that negatively impact remote workers. Thirdly, a critical issue for both employees and companies is managing the boundaries between work and home. There are conflicts that the work-family situation creates when employ- ees work from home. For example, expectations that the families of remote employees have often led to distress and disagreements. Another struggle is that remote workers have problems disconnecting from work. Many remote workers work more hours than in the traditional work environment. Even though this might seem positive from the em- ployer’s perspective, the heavy workloads make the remote workers stressed. Lastly, lack of communication contributes to isolation feelings and makes building relationships and trust more difficult in a remote environment. If communication lacks, it leads to frustra- tion and inefficiency on the part of remote workers (Mulki et al., 2009, p. 64-69). Technical difficulties are also a challenge that comes with remote work. Employees get the needed tools from the employer such as computers and other software that is needed for the work. But it is on the remote workers’ responsibility that for example, 23 the internet connection is stable and strong enough to do the needed work from else- where than the office. This can lead to interruptions, hiccups, and in severe cases – se- curity breaches. The employees who are not tech-savvy will have a more difficult time with this aspect (Clark, 2021). According to Malecki (2020, p. 10-12), it is an enormous data security risk to move employees, their computers, and data away from the pro- tected office environment. There is a lot at stake for businesses because the risks range from small technical errors to comprehensive cyber-attacks (Malecki, 2020, p. 10-12). When employers are running a remote workforce, they need to take into consideration the increased security risk. Because of the Covid-19 pandemic, the cyber-attacks on un- protected and unprepared companies have been increasing excessively. For example, in the financial sector cyber-attacks increased by 238% from February to April 2020 (Mal- ecki, 2020, p. 10-12). 2.5 International perspective of remote work One of the driving forces of remote work has been globalization (Ferreira et al., 2021, p. 70). Distributed teams have become more common in the core business structure and physical locations are no longer required (Lau, 2020). Nowadays, many companies rely on employees all over the world, exploiting their local knowledge and diversity to achieve a competitive edge (Neeley, 2015). However, globalization has caused struggles such as not having enough physical space for all the employees within many big compa- nies. These factors have begun a new wave of remote work adaptation (Ferreira et al., 2021, p. 70). Geographically scattered teams are up against a great challenge: cultural differences, physical separation, and lack of emotional connection that can lead to mis- trust and misunderstandings (Neeley, 2015). International remote teams benefit from diversity, which brings together people from a variety of cultures with different perspectives on organizational and strategic challenges and varied work experiences. Furthermore, international remote teams bring a broader understanding of different cultures. Companies benefit from having international re- mote teams because of the local knowledge that can be utilized, diversity, and a bigger 24 talent pool (Fried & Hansson, 2014, p. 143-144). In addition, having employees working remotely around the world enables better time zone coverage for customer service and projects can be done more faster when those can be worked on around the clock. This brings companies both effectiveness and competitive advantage. International perspective can also bring challenges to remote working conditions. Having team members from different functional backgrounds and countries that are working from different locations can be a difficult arrangement (Neeley, 2015). Factors such as different time zones, language barriers, communication styles, and work culture differ- ences impact remote teams enormously (Fried & Hansson, 2014, p. 143-144). Even though international remote work is complex it can be done with the effort of the whole organization. The key factors for international remote work to be beneficial for both em- ployer and employee are clear communication, making information accessible for all the workers, understanding the importance of real-time connection, considering different time zones, and having perks and benefits that suit remote workers’ needs. Haapakoski et al. (2020, p. 62) state that one of the elements of making a globally func- tioning remote team is meeting in person a couple of times a year. The goal of the meet- ing is above all feeling of togetherness. At least for now it is easier for people to get to know and trust one another when people get together physically to work and spend time together. Since 2020, it has been difficult to arrange meetings in person for global remote teams which has given more value to the remote meetings that global team members have. Both one-to-one and group meetings are substantial and the meeting preparations meaning needs to be emphasized. In the meeting preparation phase, an international perspective must be considered. Work cultures differ nationally for example in the United States work culture is more fast-paced and spontaneous whereas in the Asian work culture it is required that everyone who participates in the meeting has enough time to prepare their own part. Moreover, with international remote teams, it is an im- portant phase to tell each participant what the structure of the meeting is, what is 25 expected from them in the meeting, and what takes follow-up actions (Haapakoski et al., 2020, p. 62-65). Even though many employers promise their employees that they can work from any- where, to appear more agile and flexible, this promise may prevail difficult and vague to implement in practice. Moreover, remote work becomes more complex when working happens cross-border. Factors such as taxation, social security, and insurance are issues that come with having a workforce cross-border. Companies must decide whether it is reasonable to invest and use resources to have an option where employees can work in an international remote position. Therefore, it is important to define what “remote work” means within companies. From an international perspective, remote work needs to be prepared on an individual basis. Across companies and countries, remote work will look different for the employees, and therefore it is crucial to set boundaries on remote work possibilities (Meier & Traber, 2021). All in all, current literature shows that remote work has gained a strong place in the work culture (Castrillon, 2021; Gupta, 2021). The impact of the Covid-19 pandemic has in- creased the usage of remote work and it will shape the working conditions in the future (de Lucas Ancillo et al., 2020). Both benefits and challenges of remote work from the perspective of employees and organizations have been acknowledged by many research- ers (Allen, 2015; Clark, 2021; Mulki et al., 2009; Vilkman, 2016). Remote work has given organizations an opportunity to have a workforce across the world which enables organ- izations to have local talents, diverse teams, and a greater talent pool. One consequence that is closely related to this study is related to work-life balance. It was discovered that remote work affects the work-life balance both positively and negatively. Next, a current literature review related to work-life balance will be presented. 26 3 Work-life balance This chapter provides an overview of the current literature review related to work-life balance. At the beginning of the chapter, the nature of work-life balance is briefly defined. After that, the study presents the definitions of work-life balance. The third part of this chapter focuses on the work-life balance theories. The fourth part of this chapter will demonstrate how the challenges and benefits of work-life balance. The fifth chapter rep- resents how work-life balance can be managed by employees, and how managers and organizations can support employees’ work-life balance. The sixth chapter illustrates work-life balance in remote working conditions. Lastly, a summary of the theoretical framework will be presented. 3.1 Nature of work-life balance Resulting from employees’ concerns about the expected demands by their work, work- life balance (WLB) is a considerably new phenomenon. There are three traced factors that can be recognized in these demands: Changes in life, changes in the work environ- ment, and changes in individual attitudes (Nortje, 2021). The concept of “Work-life bal- ance” came into use in the 70s and 80s when baby boomers were stressed to achieve a balance between family, career, and other aspects of their lives (Alton, 2019). Addition- ally, there was a concern encompassing women joining the workforce. Earlier, the work- force mainly consisted of men. However, when women started joining the workforce, the juggle between both family-life responsibilities and work became an essential con- cern (Nortje, 2021). Nonetheless, work-life balance affects organizations, families, women, and men. It is an important issue that concerns men, women, singles, couples, parents, and non-parents (Nwachukwu et al., 2021, p. 30). Because of this, the concept has been adjusted from work-family life to work-life balance because our personal lives cannot be limited only to family needs (Nortje, 2021). Furthermore, there are other concerns about WLB within the work environment such as increased work pressure as a result of technological 27 improvements, increasingly tight deadlines, increased expectations about the level of customer service, and shorter response times for communication (Nortje, 2021). Be- cause of these changing work demands; personal lives are inevitably influenced. Work-life balance can be defined as the separation between the personal life and the work-life of an employee in the organization (Nwachukwu et al., 2021, p. 29-30). Bello and Tanko (2020, p. 218) state in their article that work-life balance is a broad concept that prioritizes work and life. The word “WORK” stands for actions that take physical or intellectual abilities to accomplish it. Moreover, the word “BALANCE” can be defined as a construct that gives stability in work and life domains (Bello & Tanko, 2020, p. 218). Garg and Rani (2014, p. 1472) defined work-life balance, at its broadest, as a satisfactory level of “fit” or involvement between the diversified roles in a persons’ life. Work-life balance is formed when priorities and requirements of career and personal life are on the same level. The imbalance between work life and personal life is commonly origi- nated from reasons such as long working hours. Every employee faces the challenge of finding the right work-life balance (Lonska et al., 2021, p. 1). It is crucial for both employers and family members of employees that work and personal life can be successfully combined (Lonska et al., 2021, p. 1). In organizations, the term WLB is commonly used in relation to the well-being of the employees (Bello & Tanko, 2020, p. 218). To emphasize this Wiradendi Wolor et al. (2021, p. 237-238) argue that WLB can be an incentive for the employees which balances work and personal responsi- bilities and then improves employee performance. Organizations are trying to find solu- tions in today’s fast-paced society to retain employees, improve employee morale, and positively impact the work culture. From an organizational perspective, work-life balance is about maintaining and creating a healthy and supportive work environment, where employees are enabled to have a balance between personal responsibilities and work, which generates employee productivity and loyalty (Dhas, 2015, p. 21660). 28 There is no single-use or understanding of the term work-life balance. Therefore, the term has been criticized from multiple perspectives. Work-life balance is an individual experience, and as a result, it is highly problematic to describe the term in workplace practices or policies. It has been also argued that work-life balance is a “favor” that is granted to the employees. Another problem with the term is that is presented as a flex- ible working practice that offers employees freedom and choice; however, it is often manifested in employee-unfriendly ways such as inconsistency and unfairness within or- ganizations. The term is also criticized because of outdated assumptions of ideal workers and not connecting work-life balance with workplace culture, practice, or structures (Shockley et al., 2018). The Covid-19 pandemic has affected the connection between life and work nearly eve- rywhere on the planet (Sandoval-Reyes et al., 2021, p. 1). Furthermore, work arrange- ments have been adjusted in ways such as remote work (Wiradendi Wolor et al., 2021, p. 237). Even though, benefits are being perceived from the connection of remote work and work-life balance there are also negative impacts are shown. According to Wiradendi Wolor et al. (2021, p. 237-238), the benefits include more productive employees, an in- crease in employee retention, and a better balance between work and life. However, social isolation, increased workload, and longer working hours are issues that remote work during the Covid-19 pandemic has created. Covid-19 has created frustration, stress, and fear among people and the relation between the pandemic and work-life balance needs to be highlighted. Exhaustion and stress as a result of Covid-19 affect employee productivity. In addition, separating employees from their co-workers can reduce em- ployee morale and be stressful (Wiradendi Wolor et al., 2021, p. 238). 3.2 Definition of Work-life balance According to Khateeb (2021, p. 29), there are several ways to define the concept of work- life balance. The meaning and perspectives have been formed differently by several scholars (Bello & Tanko, 2020; Khateeb, 2021). Table 2. demonstrates the definitions by several scholars of the work-life balance (Bello & Tanko, 2020, p. 219). 29 Table 2. Definitions by different scholars of work-life balance Scholar / Year Definition Clark (2000) “Good functioning and satisfaction at home and at work with a low amount of role conflict” Frone (2003) “High levels of inter role and low levels of conflict assistance repre- sents work-family balance” Greenhans & Allen (2006) “The extent to where individual’s life priorities are compatible with individual’s satisfaction and effectiveness in family roles and in work” Kalliath & Brough (2008) “The individual’s viewpoint in which non-work and work activities promote growth and are adaptable in accordance with an individuals’ present life priorities” Delecta (2011) “An individual capability to meet family and non-work commitments as well as work commitments” The definition has evolved throughout the years. Factors that have affected the devel- opment of the concept include changes in the work-life and environment, technological advancement and digitalization, and people’s needs to separate work and life. Going from 9-5 jobs where hierarchy prevails to having a flexible and collaborative work envi- ronment hasn’t happened overnight. Organizations are paying more attention to creat- ing a work environment for their employees where there is flexibility to manage work 30 and life together. The impacts of having a good work-life balance can be seen in both employees and employers and therefore it is crucial for organizations to create policies that support the changing mode of non-work and work-life (Nwachukwu et al., 2021, p. 29-30) 3.3 Work-life balance theories Various theories have evolved around the definition of work-life balance. Two major the- ories that the work-life balance has been built on are border and boundary theory (Bello & Tanko, 2020; Khateeb, 2021). In this chapter, besides the two major theories, other current theories such as segmentation, spill-over, and compensation theories will be pre- sented to explain the link between work and personal life. 3.3.1 Border theory The border theory emphasizes that work and personal life are two different domains that are interactive. People can have diverse associations within these domains based on how they feel, what kind of values are most important to them, what kind of behavior and rules do they follow, and what kind of thought patters do they have. Border theory accentuates that people are border-crossers who manage these different domains to acquire a balance between the domains (Karassvidou & Glaveli, 2015, p. 85). The theory focuses on the domains and building bridges between them and how the domains should be managed in order to have a desired balance between them (Karassvidou & Glaveli, 2015, p. 85). According to Clark (2000, p. 751) balance signifies as having mini- mum role conflict and good functioning within work and home domains. The borders of the domains can be psychological, physical, or temporal (Karassvidou & Glaveli, 2015, p. 85). Psychological borders contain emotions as well as thinking patterns and behavior patterns. Moreover, these borders do only exist in one domain and are produced by individuals. Physical borders on the other hand mean for example walls of 31 a home. Whereas temporal borders meaning for example work time creating separation between the domains (Clark, 2000, p. 756). According to Shaw (2021) permeability, flexibility, and blending are three abilities that a border’s strength relies on. ´Permeability´ means which elements can enter other do- mains and to what degree (Clark, 2000, p. 756). For example, dedicated office space cre- ates borders between work and home. However, the border has permeability because family members can enter the space and interrupt the work. Flexibility on the other hand means the borders’ ability to expand and contract depending on the requirements of the domains. For example, people having the opportunity to work remotely makes the phys- ical border flexible. Blending means a mix of both flexibility and permeability occurring at the border. When blending happens the borderland cannot be called work or home domain because both work and personal life are intertwined (Clark, 2000, p. 756-757). It is fundamental to describe border-crossers, individuals who jump between the work and personal life domains repeatedly. One of the important features of border-crossers is their ability to change domains and borders to suit their needs. Moreover, according to Lave & Wenger (as cited in Clark, 2000), they are the key participants in each domain. Influence and identity are two elements that affect these individuals and their adjust- ments to work and home. Influence means the power that the key participants have to make changes to the borders and within the domain. A study from Repetti (as cited in Clark, 2000) has demonstrated that the more the key participant has independency the more satisfied and better adjusted they are at work and at home. Identity means a strong connection between the identity and values that the key participant has towards do- mains and their borders. It is possible that key participants can be within a domain and not identify it. However, when the domain is identified by key participants, they can shape and commit the domain (Clark, 2000, p. 759-761). Domain members, as well as border-keepers such as family members, play an essential role in the border-crossers capability to control the domains and borders. Domain 32 members who have the ability to influence greatly the domain and its borders are re- ferred to as border-keepers. Common border-keepers are spouses and supervisors. It is common to have disagreements between the border-crosser and the border-keeper since everyone has established their own definition of work and personal life. However, the more there is communication between the border-crosser and the border keeper, the easier it is to come to an understanding (Clark, 2000, p. 761-762). 3.3.2 Boundary theory In this theory, the roles of people are acknowledged through social categories, such as home and work (Shaw, 2021). Boundary theory differs from border theory because there are more social categories in addition to home and work (Shaw, 2021). Individuals have the ability to switch roles and cross boundaries. The roles can be difficult to tell apart if they get blurred. In order to avoid this, boundaries should be kept clear and the roles apart (Shaw, 2021). Permeability and flexibility are characteristics that boundary theory has as well. The more flexible and permeable the boundaries are the more there is an enhancement, and the less there is flexibility and permeability within the boundaries the more there is a disturbance. Employees create and develop boundaries around both personal life and work domains that diversify in strength. Therefore, the interaction between personal life and work is influenced by the strength of the boundaries. (Bulger et al., 2007, p. 365- 367). 3.3.3 Segmentation theory This theory suggests that home and work are segmented and are in no interaction and have no effect on each other. Moreover, this view is one of the earliest in regards to the relationship between home and work. This separation allows individuals to separate their life in function, time, and space. Segmentation is defined as how people can re- strain feelings, thoughts, and behaviors from one domain in another. Yet, this has been 33 proven to be no longer true and now segmentation is presented as an active process in which people create and maintain boundaries between family and work (Rincy & Pan- chanatham, 2014, p. 3). 3.3.4 Spill-over theory The spill-over theory emphasizes that experiences, to a certain level, in one domain re- flect negatively or positively on other domains. In theory, spillover has been defined as Positive Spillover and Negative Spillover. Positive spillovers are positive experiences in one domain that are a result of fulfillment in another domain. On the contrary, negative spillover means negative experiences that result from unfulfillment in another domain (Khateeb, 2021, p. 29-30). 3.3.5 Compensation theory Compensation theory proposes that if something is lacking in one domain, as regards to satisfaction and demands, it can be made up in another domain (Guest, 2002, p. 258). Compensation theory has been characterized as a negative relationship between work and family. The reason for this is that negative experiences in one domain affect another domain’s perception positively (Khateeb, 2021, p. 32-33). 3.3.6 Instrumental theory The instrumental theory proposes that actions and activities in one domain help achieve success in another domain (Guest, 2002, p. 259). Meaning that individuals get resources from one domain to another by carrying out certain actions and activities. In addition, this theory advocates that there is a positive link between two domains making it com- parable to spill-over theory (Bello & Tanko, 2020, p. 222). 34 3.3.7 Conflict theory Conflict theory indicates that individuals can face conflicts, overload, and complicated choices when there is a high level of demand in all of the domains of life (Guest, 2002, p. 259). According to Khateeb (2020, p. 30) achievement in one aspect of life outcomes in sacrifice in the other aspect. This theory is based on the assumption that work and life are conflicting with each other because of different requirements and norms (Khateeb, 2020, p. 30). 3.4 Challenges and benefits related to work-life balance The work-life balance impacts everyone, regardless of gender, age, family structure, in- come level, job status, religion, or occupation. Individuals struggle with the stress that comes from juggling work and personal life. According to Lockwood (2003), 70 percent of employees report that they do not have a healthy balance between their personal lives and work. Moreover, the research from Lockwood (2003) states that 90 percent of working adults think that they do not spend enough time with their families, which is for 80 percent of men and women the number-one-rated work/life priority. Next, the chal- lenges and benefits of the work-life balance will be discussed. 3.4.1 Challenges The ability to harmonize work and private life is a pressing social issue. In recent decades, the pressures of work have been growing (Guest, 2002, p. 257). Moreover, one of the biggest challenges to the mental health of the employees is a demanding work culture (Ross & Vasantha, 2014, p. 62). Previous research has demonstrated that increasing de- mands in both work and personal life affect negatively the balance between work and personal life (Millear & Liossis, 2011, p. 1). An imbalanced work-life balance can lead to challenges that affect both the company and the employees. Moreover, the imbalances have a negative impact on both profes- sional and personal life. From an employee perspective, the signs of having a poor work- 35 life balance are high levels of stress which can in a worst-case scenario lead to burnout, working overtime, decreased productivity, and taking a lot of time off from work to deal with personal matters. From a company perspective, the signs of poor work-life balance include higher rates of staff sickness or absenteeism and high levels of staff turnover (Lonska et al., 2021). The issues that arise in the work domain can heavily affect the other domains. Negative effects such as increased amounts of stress can very quickly lead to decreased job satis- faction, low employee morale, and poor productivity (Lockwood, 2003, p. 4). This can then affect personal life and it can cause conflicts and other problems. To avoid these types of situations both employer and employees must contribute to creating and de- veloping a better work-life balance (Ross & Vasantha, 2014, p. 65). 3.4.2 Benefits The benefits of the work-life balance are not only psychological and social but also eco- nomic (Naithani, 2010, p. 151). Companies that introduce employment policies that sup- port a healthier work-life balance can benefit both the company and its staff. From an employee’s perspective, a good work-life balance can lead to increased job satisfaction, increased productivity, reduced stress levels, feeling more in control of working life, greater employee commitment, motivation, loyalty, and improvements in employee mental health and well-being. From a company perspective, flexible working practices and work-life policies can lead to the following benefits: reduced lateness and absentee- ism, improved productivity and competitiveness, employee loyalty, reduced staff turno- ver rates, and increased retention. Work-life balance is a key driver of employees’ satis- faction. Therefore, the work-life balance must be encouraged and supported at all levels of the organization (Garg & Rani, 2014, p. 1475-1477). 36 3.5 Management of work-life balance It is challenging but essential for individuals to balance their professional and personal life. It is important not only for the career individuals are building but also for emotional, physical, and mental well-being (Sanfilippo, 2021). In this chapter, management of work- life balance will be introduced from three different aspects: employees’ self-manage- ment, and how managers and organizations can support employee work-life balance. 3.5.1 Employees’ self-management of WLB To every individual, work-life balance means something different (Lee, 2021). Previously it was mentioned that maintaining a work-life balance helps prevent burnout and helps reduce stress (Kohll, 2021). There are multiple ways an employee can improve their own work-life balance. The first one is to create boundaries and identify priorities. Secondly, prioritize overall physical, mental, and emotional health. Thirdly, being able to unplug from work helps to recover from stress and it gives space for other thoughts and ideas. Fourthly, creating achievable goals and structuring the workday. Lastly, changing the working habits by focusing on valuable activities and delegating tasks that can be out- sourced (Lee, 2021; Sanfilippo, 2021). 3.5.2 Supporting employee WLB from the role of the manager Managers can help their employees to achieve a better work-life balance and also do a better job by supporting employees in multiple ways (Sanfilippo, 2021). Today, business leaders recognize that in order to maintain a healthy workforce, it is important to under- stand work-life balance comprehensively. Managers can improve their employees’ work- life balance by helping them to juggle their responsibilities (Lotich, 2020). As mentioned earlier managers can support their employees’ work-life balance in multi- ple ways. Firstly, managers can show an example of how they find a balance between work and personal life to their employees. The ways managers can show an example include working reasonable hours, having interests outside of the organization, and 37 sharing personal priorities. Secondly, managers can set boundaries and teach the em- ployees that personal boundaries are essential. Thirdly, managers can teach their em- ployees about priorities. Lastly, committing to having a balance between work and per- sonal life. Managers should show an example of balancing work and personal life and also commit to it in order for the employees to do the same. This can be challenging in a hectic work environment, but it is important not only to show an example to the em- ployees but also for the managers to find the desired balance between work and per- sonal life (Lotich, 2020; Sanfilippo, 2021). In Table 3. practical things that managers can do to help employees improve work-life balance are represented. Table 3. Practical ways managers can use to help employees improve WLB o Talk about personal interests and how these interests have helped to manage work and personal life obligations o Talk to employees about the importance of taking time off o Talk about employees’ personal interests and encourage outside interests o Talk about planning and scheduling vacations in advance 3.5.3 Supporting employee WLB from the role of the organization Organizations have a big role in creating a foundation for work-life balance policies, and practices in the workplace culture (Garg & Rani, 2014, p. 1477). Existing literature pre- sents five different organizational programs and policies related to work-life balance: flexible working arrangements, health, and well-being arrangements, provision of leave, organizational support and understanding, and childcare benefits or services (Zheng et al., 2015, p. 359). In the study by Clark (2000), it was stated that these programs and policies are generally considered to be positively associated with better-reported work- life balance. 38 One of the ways to improve work-life balance is to build a culture where employees feel respected and supported. Mutual expectations of inputs and outcomes in the relation- ship between an employer and the employees lead to better performance and higher commitment to the organization. Another way is to create a flexible work environment by allowing people to work more flexible work hours and days from another location than the office. In addition, developing a culture of trust helps to reduce the stress of the employees, asking for feedback is also another way to create an open communica- tion culture (Peart, 2020). The study by Zheng et al. (2015) discovered that work-life strategies and programs that are implemented in organizations have a crucial role in helping employees to achieve a balance between work and personal life. Besides the programs and strategies, individual factors such as occupation, age, marital status, and income level related to meeting life- style commitments, keeping up a positive attitude, and juggling personal and work-life responsibilities significantly influence the balance between work and personal life. Con- sequently, it is essential to re-evaluate and modify organizational work-life balance pro- grams and policies to assure that they are tailored to meet individual employees’ needs (Zheng et al., 2015, p. 371). 3.6 Work-life balance in remote work A growing number of tasks can be done and observed anytime and anywhere because of information and communication technologies and flexible work arrangements that companies offer. In the past few years, remote working was used to prevent workplace- related stress and as an attempt to cut down working hours. During the pandemic, re- mote work arrangements have been seen as a continuity of business activities and in addition, to ensure the safety of the employees (Wiradendi Wolor et al., 2021). Even though the work landscape has changed drastically and permanently, organizations and employees have adjusted to this reality. Stewards (2022) indicates that one of the main reasons people choose to work remotely is a better work-life balance. 39 Courtney (2022) states organizations have insinuated that it is not essential to be physi- cally at the office full-time in order to get great results. Remote work arrangement offers employees independence and flexibility which commonly lead to a better work-life bal- ance (Muller, 2021). Several previous studies have emphasized that work-life balance is positively affected by remote work. Furthermore, it has been stated that reduced family conflicts are one of the positive effects of the remote work option (Akkaya et al., 2021; Rodríguez-Modroño & López-Igual, 2021). Additionally, positive factors that affect the balance include having fewer interruptions, being able to concentrate better, having more time to spend with the family, and having a comfortable and quieter place to work (Muller, 2021). However, remote work can lead to an accumulation of work, longer working hours, and overlap between work and personal life. According to Steward (2022), unplugging after work, affirming that the borders of the domains overlap, is the biggest challenge corre- lated with remote work. Additionally, Akkaya et al. (2021) emphasize that when the du- ties of domains get blurred in remote work it reduces the satisfaction related to work- life balance. However, according to Best (2021, p. 309), some employees want a strict segmentation between work and personal life in remote work whereas some are more receptive to the domains overlapping. This makes it challenging for the organization and supervisor because individual needs must be considered to be able to support the bal- ance between the work and personal life of employees. As a result, the organizational programs and policies related to work-life balance are harder to generate so that these programs and policies help and support the work-life balance of each employee. Because of these factors, the role of organizational factors in defining work-life balance is increasing. Organizations need to develop a transparent personnel policy to support employees who work remotely. As many employees are working remotely is important to identify the aspects that support employees in achieving a balance between work and personal life and maintaining both mental and physical well-being (Akkaya et al., 2021; 40 Rodríguez-Modroño & López-Igual, 2021). Since organizations have seen the benefits of remote work, many are planning to adopt a hybrid model (Courtney, 2022). As work ar- rangements are evolving it is crucial that organizations consider work-life balance poli- cies and programs and adjust those accordingly to support both employees’ well-being and organizational productivity and efficiency. 3.7 Summary of the theoretical framework This chapter presents a summary of the theoretical framework that is used in this study. This study focuses on work-life balance in remote working conditions. Remote work as a practice was introduced and thoroughly explained. As regards work-life balance, the the- ory that will be used to examine the research question and objectives will be the border theory. It is one of the major theories that explain the link between work and personal life. Border theory emphasizes that work and personal life are two different domains that are interactive (Clark, 2000). In remote working conditions, both work and personal life intertwine which makes it difficult for people who work remotely to separate work and personal life domains. There are more distractions from each domain border-keepers which influence the bor- der-crossers experiences and actions in each domain. The behaviors and thinking pat- terns can get mixed in the environment where domains are blurred together. To maintain and create the desired balance domains should be connected with bridges and with proper borders. People are different in this sense, and it is important to understand that some people function on a higher level when these domains are intertwined and some when these are clearly separated. Based on the theoretical framework, it can be stated that work-life balance in remote working conditions is for every individual different based on experiences, life situations, and personality. Since Covid-19, many employees started working remotely for the first time. Now, many employees have become more used to working remotely. Even though the adaptation to the situation has happened, it does not mean that people have found a balance 41 between work and personal life. The pandemic has shown that work-life balance is more important than ever because for many it has been the first-time work and personal life boundaries have been blurred. Traditional working methods have been renewed com- prehensively. Remote work will most likely be an arrangement in the future that organi- zations will utilize in order to distribute flexible work arrangements for employees reten- tion and to attract talents worldwide. The theoretical framework presented benefits related to remote work and work-life bal- ance. It was discovered that remote work has multiple benefits for employees and or- ganizations. Employee benefits of remote work included flexibility, autonomy, control of resources, having more time to spend with family, and saving time when they did not have to commute to work. Organizational benefits of remote work contain higher productivity among employees, lower real estate costs, healthier employees, being able to retain employees better, and attract a bigger talent pool. Additionally, it was deter- mined that a good work-life balance has positive effects on both employees and organi- zations. Employees benefit from having a good work-life balance because it increases motivation, loyalty towards the organization, productivity, job satisfaction, having better mental health, and reduced stress levels. Organizations benefit from flexible work prac- tices and work-life policies in the following way: improved competitiveness and produc- tivity, increased employee loyalty, reduced staff turnover, lateness, and absenteeism. Moreover, the challenges of remote work were emphasized. Problems that were raised from an employee perspective consisted of communication difficulties, isolation, less de- fined work-life boundaries, mistrust, and lack of knowledge sharing. Organizational is- sues that were established related to difficulties in reviewing performance, compensa- tions, paying wages, and technical difficulties such as security breaches. Besides remote work-related challenges, an imbalanced work-life balance can have a negative impact on both professional and personal life. Employees can experience high levels of stress which can lead to burnout, decreased productivity, and work overtime. Organizations are 42 affected by poor work-life balance as well. High levels of staff turnover, sick leaves, and absenteeism were factors that were raised as crucial issues. Apart from the benefits and challenges of remote work, the international perspective of remote work was introduced, and even though, globalization has made it more efficient with benefits such as diversity, broader understanding of cultures, and better time zone coverage, geographically dispersed teams are facing challenges. Underlining the chal- lenges such as working from different time zones, language barriers, work culture differ- ences, and communication styles highlight the complexity of having global remote teams. Managing work-life balance is the key to a good work-life balance. It was recognized that managing work-life balance can happen from three different perspectives: individual self-management, supported by managers, and organizations. Self-management helps to reduce stress and it can improve work-life balance in multiple ways. The most crucial self-management factors were prioritizing health, creating boundaries, identifying prior- ities, and being able to unplug. Managers can support their employees to achieve better work-life balance in various ways. The factors that were highlighted included setting ex- amples to the employees about balancing work and personal life, showing interest in personal priorities outside the organizations, setting boundaries and teaching those to the employees, and committing to maintaining work-life balance in a hectic work envi- ronment. An organization’s support differs from the manager’s support in employee work-life balance. Manager’s role is more personal and is based on their individual self- management. Organizational management refers to policies and programs that have been created to maintain and improve work-life balance. The policies and programs in- cluded flexible work arrangements, organizational support and understanding, provision of leave, health and well-being arrangements, and childcare benefits or services. Re- evaluation of the programs and policies was highlighted to ensure they meet individual employees’ needs better. In the next chapter, the methodological design of the thesis will be presented. 43 4 Methodology In this chapter, the design of the research in this thesis is presented. First, it presents and explains the research philosophy, research approach, research strategy, and research method. In addition, data collection, sample, and data analysis are provided to explain how the empirical data has been gathered and analyzed. Lastly, the reliability and validity of the study are discussed. 4.1 Research philosophy The methodological chapter begins by determining the most appropriate research phi- losophy. Research philosophy relates to knowledge, assumption, and nature of the study, distributing with a particular way of developing knowledge. Moreover, it is a belief about the ways how data should be collected, analyzed, and used about a certain phenomenon. This matter needs to be discussed because researchers may have different assumptions about knowledge and nature, and this chapter helps to understand these assumptions (Saunders et al., 2019). Generally, there are four major philosophies which are positivism, critical realism, inter- pretivism, and pragmatism. Positivism refers to phenomena that can be observed with fact-based data and measurable regularities to gain meaningful data. Furthermore, uni- versal rules and laws help to predict and explain the chosen events or behaviors. Critical realism focuses on explaining what we experience and see, regarding underlying struc- tures of reality that form the observable events. Moreover, the method for this philoso- phy can be either quantitative or qualitative. Interpretivism, on the other hand, empha- sizes investigating subject meanings and social phenomena. The most suitable tool for interpretivism research is the qualitative method with small samples such as utilizing in- depth investigations. Pragmatism study refers to research that focuses on practically ap- plied research, in which mixed perspectives are combined to analyze the data (Saunders et al., 2019, p. 144-151). 44 Looking closer at the interpretivism approach it examines the reality on the basis of ex- periences, backgrounds, and perceptions of participants. With this research approach, participants’ experiences are utilized to find answers and to develop an understanding of the collected data (Saunders et al., 2019). Interpretivism was seen as the most suitable philosophy for this study because participants’ views and experiences about remote working conditions and how it affects work-life balance help the researcher to create understanding from the collected data. In addition, in this study, empirical data will be gathered by using qualitative methods and in-depth investigations with a small number of respondents. 4.2 Research approach and strategy After the most applicable research philosophy is resolved, the research approach and strategy are presented. Deductive, inductive, and abductive are methodological choices from which the researchers can choose (Saunders et al., 2019). Firstly, the deductive ap- proach focuses on building hypotheses and testing if the hypotheses are right or wrong (Zefeiti & Mohamad, 2015, p. 3). On the contrary, the inductive approach doesn’t test theories but aims to develop a theory by observing patterns (Zefeiti & Mohamad, 2015, p. 3). The abductive approach, which is a mixture of the two first ones, begins with un- expected facts, and the research process is dedicated to their explanation (Dudovskiy, n.d.). In addition, existing literature can be altered, or a new one can be built based on the findings of the data collection. In this study, the thesis will follow an abductive methodological approach. The aim is to analyze factors that affect work-life balance of employees in remote working conditions by gathering data through semi-structured interviews. Unlike deductive and inductive reasoning, abductive research can change, explain, and develop the theoretical frame- work before, during, and after the research process. Accordingly, the abductive approach was seen as the most suitable option for a qualitative study with small samples. 45 Researchers have identified the main purposes of research strategy which can be either exploratory, descriptive, and explanatory or a combination of all. The exploratory re- search method aims to investigate a research problem that is not yet sufficiently re- searched or well understood. Furthermore, it aims to study phenomena that are under- examined which relies less on theory, and more on the data that has been collected to recognize patterns that explain these phenomena. With this method, data can be col- lected either from a primary or secondary source. Primary research methods that can be utilized are surveys, interviews, focus groups, and observations. Whereas secondary re- search methods gather information from sources such as studies, newspapers, and books. The descriptive research method on the other hand is used to explain the char- acteristics of a particular phenomenon without inevitably investigating the causes that generate it. Moreover, this method aims to understand more “what” than the “why” of the research subject. Descriptive research can be conducted with three distinctive meth- ods which include an observational method, a case study method, and survey research. Lastly, the explanatory research method, which is the most commonly used, attempts to understand why something takes place when there is only limited information available. It is complementary to the descriptive research method, although it provides supple- mentary facts about the observed object and its interaction with the environment. Most commonly used research methods contain literature reviews, in-depth interviews, focus groups, and case analysis (Bhat, 2022). This thesis aims to find out how remote working conditions affect work-life balance of employees and how work-life balance can be managed. Hence, it is crucial to understand the factors that impact the balance between work and personal life when working re- motely. An explanatory research strategy is the most suitable option for this purpose and is consequently chosen. 4.3 Research method According to Patel and Pater (2019), research problems can be systematically solved with research methodology. Furthermore, the purpose is to find answers to questions with 46 the help of the application of scientific procedures (Patel & Patel, 2019). There are mul- tiple ways to distribute research which include settings, place, technique, time, and pur- pose. The types of research vary, and all the research methods have their own signifi- cance. Williams (2007) describes that there are three common approaches to conduct research which are qualitative, quantitative, and mixed methods. The researcher should choose the method that is suitable for conducting the research. Depending on the research question it should be anticipated what type of data is needed to respond to the chosen question. Qualitative research is a holistic approach that involves discovery. Additionally, Patel and Patel (2019) describe that qualitative research generally works when studying human behavior. According to Williams (2007), this research method is less structured in the description because it formulates and builds new theories. While on the contrary quantitative research mainly concerns the measurements of a phenomenon in terms of quantity (Patel & Patel, 2019). Hence, Williams (2007) states that quantitative research can be used in response to relational questions of variables within research. Further- more, the findings from quantitative research can be explanatory, predictive, and con- firming. The research method used in this research will be a qualitative method. Hence the aim is to explain and explore how remote working conditions affect work-life balance of em- ployees and how can work-life balance be managed. Moreover, what impacts of remote work on work-life balance of employees, which factors affect positively and negatively work-life balance, self-management of the balance between work and personal life, and how managers and organization can support their employees with work-life balance. To get a comprehensive understanding of the research problem, individuals' experiences, perceptions, and behaviors should be further studied by using a qualitative method. The qualitative method provides deeper information on individuals than the quantitative method. In this study, it would not be relevant to discuss the phenomena in terms of quantity. 47 4.4 Data collection and sample Next, the data collection method and a sample of the study will be introduced. First, the data collection method measures and gathers information on variables. The collection of the data should be done systematically in order to answer the research question and evaluate the outcomes. Furthermore, this is one of the most important stages of the study. There are two categories based on their source, primary and secondary data, from which the researcher can collect the data. Firstly, primary data is collected by the re- searcher themselves. This collection method is more objective, authentic, and reliable than secondary data because the data has not been altered or changed. Secondly, sec- ondary data is collected by someone else, and it is fundamental because it captures pre- vious development and changes (Saunders et al., 2007). As shown above, a qualitative research method was chosen for this study. In qualitative research, the most common data collection methods are interviews, observations, sur- veys, and analysis of books or visuals. For this research purpose, interviews were seen as the most suitable option for the data collection method. Hence, there are three es- sential types of research interviews: structured, semi-structured, and unstructured. Structured interviews are questionnaires with predetermined questions that are asked with no scope for follow-up and little or no variation. The questions are standardized and alike which indicates that no biases should arise during the interview. On the contrary, unstructured interviews aim to investigate in-depth a general topic. There are no guide- lines or prepared questions beforehand. Therefore, these types of interviews usually take a lot of time and are difficult to manage. Lastly, semi-structured interviews consist of several important questions that help to describe the areas that are being explored. The flexibility of this approach, specifically when compared with structured interviews, allows elaboration and discovery of information that is important to the people who participate in the interviews but may have not formerly been thought of (Bhat, 2021; Gill et al., 2008, Groenland & Dana, 2019). 48 For this study, semi-structured interviews were seen as the most suitable tool to gather data. In this research, the purpose is to understand better how remote working condi- tions affect work-life balance of employees and how can work-life balance be managed. To answer this question, new insight was gathered and investigated. According to Groen- land and Dana (2019, p 26), qualitative methods are fitting to understand the perspec- tives of participants in their words and the meaning they give to phenomena. Because of the flexible nature of semi-structured interviews, the questions could be adjusted and altered accordingly after pilot interviews to help to answer the research question more comprehensively. Furthermore, in order to interpret patterns from the answers of the interviewees. When the empirical data has been collected, the next step is to analyze, describe, and deduce conclusions. Interviews are the best-suited data collection method for this re- search design and research question. The focus of the interviews was to understand how remote work has affected the interviewees’ work-life balance. Hence, the interviews fo- cused on the interviewee’s experiences. As has been mentioned before, semi-structured interviews were seen as the most suitable tool to gather data for this study. It provides the opportunity to gain in-depth information by asking predefined questions but also to gain an understanding of factors that were not thought of before. The questions were divided into four sections which helped to categorize the findings. The appendix presents the interview questions that were asked by the interviewees. Furthermore, the ques- tions were sent to the interviewees beforehand so that they were able to get familiar with the interview questions and to gain more in-depth information for the study. In total, 7 semi-structured interviews were conducted with people who work in the IT, recruitment, and finance fields. The interviews were conducted one-to-one. Two of the interviews were held face-to-face, and the other five interviews were conducted online via Zoom. The majority of the interviews were held in the native language of the inter- viewees which was Finnish, to assure they were comfortable and had the ability to ex- press themselves extensively. One of the interviews was done in English. The length of 49 the interviews varied from 16 minutes to 1 hour and 19 minutes. The interviews were designed so that the interviewees could express their opinions and feelings freely. During the interviews, to gain a deeper understanding of the interviewees’ thoughts, follow-up questions were asked if the answers were brief. Before the interviews started, all the participants gave their consent to record the interview. Hence, this gave the researcher a chance to properly analyze and transcribe the collected data afterward. For the author to provide evidence for the analysis, the most relevant comments from the interviews that were conducted in Finnish were translated into English. The purpose of the present study is to comprehensively understand how remote work affected work-life balance of employees and how can work-life balance be managed which is why the interviewees will remain anonymous. 4.4.1 Sample As it was previously stated, 7 semi-structured interviews were conducted for the study. The age distribution was quite big. The youngest interviewee was 26 and the oldest one was 60. Big age distribution can be seen as a positive matter in the study because it enables to gain information on how different aged people felt remote work affected their work-life balance. Amongst the interviewees, there were both females and men. Most of the interviewees were women since only two of the interviewees were men. Moreo- ver, the interviewees’ life situations and households differed extensively. Among the in- terviewees, there were people who lived alone, with partners, and with families. This can be also seen as a positive matter in the study because it gives information on how different types of households and life situations affect work-life balance in remote work. Of the interviewees, one worked in the IT field, one in recruitment, and five in the fi- nance field. Conjunctive to all the participants was that the amount of remote work had increased due to the Covid-19 pandemic. Two of the interviewees had not worked re- motely before the pandemic. Most of the interviewees were working remotely now as well. 50 Two of the interviewees were managers. It was crucial to interview both employees and managers to gain understanding from both sides to answer the research question and objectives. Furthermore, half of the interviewees had international work assignments and worked closely with colleagues from other countries. The interviewees were found for this research through the connections and networks that the researcher has. Table 4. presents the background information of the participants. In order to maintain the anonymity of the participants, more detailed information will not be shared. Table 4. Participants Respondent Age Gender Field Remote work- ing before Covid-19 pan- demic Remot