A research done at Stanford with a Chinese company (CTrip – the Chinese equivalent of Expedia), reveals that working at home is actually more productive than working physically in the office as well as has other benefits like increased job satisfaction. They have also noted that, fewer people leave too reducing employee turn overs.
CTrip, decided to cut their expenditures on their expensive Shanghai office which resulted them to invite some of their staff to work at home. 500 employees are randomly offered to take part in the trial; half of them would be working at home. The management group fully expected that the space that was saved would also result a drop in productivity. Soon enough, they have discovered that the select home workers’ productivity increased by 13 percent.
Upon studying the details, the 9.5% increase in overall productivity was due to work at home employees had more working hours, started on time, did not deal with the daily commute, took fewer breaks and had fewer days off due to sickness. The other 3.5% was because they took more calls per minute. Also, the quiet working environment allowed workers to concentrate on the tasks at hand. In addition, employees who worked at home reported a higher job satisfaction and were 50% less likely to leave their company compared with their colleagues who stayed in the office.
After the 9 month trial, half of those who worked at home chose to go back to the office. This is a clear indicator that working from home might be interpreted as isolation to some. Choice is the key factor here. Once employees are able to choose where to work, performance impact of working at home is more than doubled.
For entrepreneurs and business leaders’ pressing issue is the employee’s autonomy versus their work location. For employees to be productive and feel fulfilled, they need independence but the corporate world dictates and continues to emphasize systems for control, lean processes and compliance. However, the unintended consequence of a reduction in team members’ ability to choose needs to be heavily factored into decisions that are made.
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