How Two Megatrends Affect Each Other: Studying the Interplay of Remote Work and Workplace Inclusion with a Random Intercept Cross-Lagged Panel Model

Two megatrends characterize the modern working world. First, remote work has become the "new normal" for many employees. Second, the increasing heterogeneity of the workforce has made a case for inclusion, i.e., belongingness and the opportunity for authenticity, that employees must perceive to reap the benefits of diversity. However, it is unclear whether the relationship between remote work and inclusion is positive or negative and if these two factors cause a unidirectional or reciprocal impact on each other. Furthermore, it is unresolved whether diversity dimensions, such as gender, have a moderating impact on the relationship. To address these questions, we collect a large-scale longitudinal dataset (N = 2,380) and use an advanced methodology (random intercept cross-lagged panel model) to separate the between-person from the within-person variances, thereby allowing for causal conclusions from the within-person effect. Our results show opposing effects at the between-person and within-person levels: although the employees who worked remotely more experienced more opportunity for authenticity and belongingness in general (between-person variance), an increase in remote work led to lower belongingness and authenticity within a single employee (within-person variance). A gender effect was observed for the opportunity for authenticity, with only negative within-person effects being shown for women.