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The key to increasing productivity, worker satisfaction and retention at your company? Allow your employees to work from home, says a recent study.
Professor Nicholas Bloom of Stanford University and James Liang, co-founder of Chinese travel website Ctrip, conducted a study by sampling callers at Ctrip to assess the effects of working from home on employee productivity and happiness.
Ctrip predicted a blow to its productivity, but was pleasantly surprised by the results. The company found that people working from home completed 13.5 percent more calls than the office staff. These workers also quit at half the rate and reported a “much higher job satisfaction.”
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In the end, Ctrip received an “extra workday a week” and saved an estimated $1,900 per employee.
The reasoning behind the increased productivity can be attributed to multiple factors. Professor Bloom states that two-thirds can be explained by the fact that the people working at home were able to put in more hours. They avoided the dreaded trafficked commutes, started early and didn’t need to perform lunch errands.
They also didn’t get sick as often from breathing infectious pathogens. Another factor is the quieter environment; offices can be incredibly noisy and can distract the workers from efficiently processing their calls.
Bloom and Liang’s results proved to be true throughout the nine months. There was speculation that worker output would taper off after a couple of months, but the positive impact on homestay workers remained constant over the nine-month period.
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However, Bloom wants employers to keep in mind that this method may not work for everyone. Some men and women don’t have the self-discipline to work from home. There were a select few volunteers in the experiment who opted out of working from home because they found that it wasn’t right for them.
Because employees were given the choice, however, Ctrip had a select group of workers enthusiastic to work remotely and another group of office workers, all of whom put in good work as a result.
There is still research yet to done on the effect of working at home on teamwork in creative industries. However, Bloom notes that regardless of profession, it is important to allow employees one to two days a week at home. According to the researcher, creating this habit of working from home is “hugely beneficial to their well-being, helps attract talent, and lowers attrition.”
Survey responses at the end of the study revealed that compared to their office counterparts at-home employees were “happier, less likely to quit and more productive.” In the end, Bloom advises that it is up the employer’s discretion how they want to schedule at-home days. But evidence still suggests no matter what your industry, compromise can make an enormous difference both in terms of financial profit and bodily well-being.
