Working from Home and Job Satisfaction: A Mediating Effect of Organisational Culture

The widespread shift to remote work during the COVID-19 pandemic accelerated a debate on its impact on employee satisfaction. Despite assumptions that greater flexibility and autonomy would inherently boost job satisfaction, research findings have been inconsistent. A key mechanism that might help explain these mixed outcomes is organisational culture. This study, based on unique linked employer-employee panel data, examines how various dimensions of corporate culture are associated with job satisfaction among remote and on-site workers. The findings reveal that working from home (WFH) enhances job satisfaction, particularly within companies characterised by weaker organisational cultures in the area of communication, leadership and supervision. Importantly, this effect varies significantly by gender: men predominantly benefit from WFH in weaker cultural contexts, while women experience increased satisfaction primarily in organisations with strong supportive cultures. Personality traits, including extraversion and agreeableness, further moderate these relationships. These results highlight the importance of aligning remote work policies with organisational culture to effectively address gender differences and ensure broad-based improvements in employee satisfaction and workplace well-being.