The Impact of Remote Work Policies on Organizational Performance and Employee Productivity in Public Sector Institutional

Ardianta Sabtu, Oktober 03, 2026
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FORMOSA NEWS

Remote Work Enhances Public Sector Performance and Productivity When Supported by Strong Digital Infrastructure

A new empirical study reveals that remote work policies significantly improve organizational performance and employee productivity in public sector institutions. Conducted by Sugiyanto from Sekolah Tinggi Ilmu Administrasi (STIA) AAN Yogyakarta and Klemens Mere from Universitas Wisnuwardhana Malang, the research was published in the International Journal of Contemporary Sciences (IJCS) in September 2026. The study provides vital evidence that flexible work policies in government institutions sustain public service quality while dismantling long-held assumptions that public sector efficiency relies solely on physical office presence.

Background and Relevance

The post-pandemic landscape has permanently altered organizational structures worldwide, shifting remote work from an emergency intervention to a formal institutional policy. Public sector organizations face distinct challenges compared to private firms, as they must ensure continuous public service delivery and maintain regulatory compliance while operating under rigid bureaucratic frameworks. Many public administrators have hesitated to formalize remote or hybrid work arrangements due to concerns over declining employee productivity and accountability. This research addresses a critical policy gap by providing empirical evidence on how public sector institutions can optimize remote work arrangements effectively.

Simplified Methodology

The researchers employed a quantitative explanatory design using data collected from 137 public sector employees in Indonesia who had worked under formal remote or hybrid policies for at least six months. Data were gathered through a self-administered questionnaire measuring schedule flexibility, location autonomy, service quality, output quantity, work engagement, and technological capability. The study used Partial Least Squares Structural Equation Modeling (PLS-SEM) to test how remote work influences productivity and performance, specifically analyzing work engagement as a mediating mechanism and digital infrastructure readiness as a moderating factor.

Key Findings

The empirical analysis yielded several significant insights into public sector remote work dynamics:

  • Direct Performance Boost: Remote work policies exerts a strong direct positive effect on organizational performance ($\beta = 0.428; p < 0.001$) and individual employee productivity ($\beta = 0.391; p < 0.001$).
  • Mediating Role of Work Engagement: Work engagement partially mediates the relationship between remote work policies and employee productivity ($\beta = 0.274; p < 0.001$). Granting schedule flexibility and location autonomy enhances employee vigor, dedication, and focus, directly boosting work output.
  • Digital Infrastructure as a Performance Multiplier: Digital infrastructure readiness significantly strengthens the positive impact of remote work policies on organizational performance ($\beta = 0.163; p = 0.008$). Institutions with robust internet connectivity, integrated information systems, and digital skill training gain greater performance benefits from remote work policies.

Real-World Implications and Impact

The research offers actionable recommendations for government officials, policymakers, and public sector administrators seeking to modernize public administration. Public sector institutions should formalize remote work policies into written regulations that define eligibility, working hours, and clear output expectations. Traditional attendance-based supervision must transition toward outcome-based performance management that evaluates service timeliness and output quality. Furthermore, public institutions must prioritize investments in integrated software systems, network security, and digital skills development, as technological readiness dictates whether remote work policies translate into measurable organizational gains.

According to Sugiyanto from STIA AAN and Klemens Mere from Universitas Wisnuwardhana Malang, "Remote work policies in public sector institutions act as structural job resources that drive internal work engagement and operational productivity when paired with adequate technological infrastructure".

Author Profiles:

  1. Sugiyanto, S.E., M.M. is a researcher and academic at Sekolah Tinggi Ilmu Administrasi (STIA) AAN Yogyakarta, Indonesia, specializing in public sector management, human resource administration, and organizational behavior.
  2. Klemens Mere, S.E., M.Si. is an academic and researcher at Universitas Wisnuwardhana Malang, Indonesia, with expertise in public administration and organizational development.

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