hybrid work reduced in 35% the dropout rates in a large technology company and improved job satisfaction ratings self-reported, without negatively impacting performance ratings or promotions, according to a new study co-authored by Nicholas Bloom of Stanford University.
Following the explosion of remote work during the COVID-19 pandemic, many companies have adopted hybrid work arrangements for their employees. This usually involves working two or three days a week in the office and the rest at home, allowing employees Divide the tasks that are best done in person and those that are best done individually.
(See: The differences between working at home, telecommuting and remote work).
With the unemployment rate near its lowest level in five decades, even some of the staunchest opponents of working from home have changed their minds about attracting and retaining employees.
Randomized control test of 1,612 marketing and finance engineers and employees was conducted in 2021 and 2022 at the global travel agency Trip.com.
Those born on an odd date (for example, June 3) had the option to work from home on Wednesdays and Fridays, while the others had to work in the office full time.
Following the study, Trip.com rolled out hybrid working throughout the company.
The paper’s authors are Bloom, Ruobing Han of Stanford University, and James Liang.
(See: Remote work: what employees want and what companies offer).
In addition to the improvement in dropout rates, the document released by the National Bureau of Economic Research also highlighted how hybrid arrangements alter work schedules and habits.
Employees worked fewer hours on remote work days, but increased the number of hours worked on other days, including weekends.
In total, employees worked about 80 minutes less on work-at-home days, but about 30 minutes plus the other weekdays and the weekend.
(See: This is how remote work will govern with the new regulations in the country).
In addition, employees who worked from home increased individual messaging and group video communication, even when they were in the office.
The study found no impact of working from home on performance reviews or promotions overall or in any individual subgroups.
Nevertheless, those with the option to work from home reported slightly higher productivity.
There was also an 8% increase in lines of code written by that group compared to office workers, a measure of productivity for IT engineers.
(See: Remote work boosts US hiring in Latin America).
“Overall, this highlights how hybrid work from home is often beneficial for both employees and companies, but is often underestimated out of hand.“the authors wrote.
BLOOMBERG
