Improving Productivity by Working from Home

Does working from home improve productivity? A Stanford University study of a Chinese travel agency concluded that it does. 

The study found that employees working from home: 

  • Were 13% more productive (9% worked more hours, taking less breaks and fewer sick days and 4% had higher performance rates per minute – hypothesized to be due to quieter working conditions).
  • Had 50% less attrition.
  • Reported higher feelings of work satisfaction.

Total factor productivity increased between 20 and 30 percent (the increase was due from two sources – efficiency in calls per minute and capital input). In addition, the company estimated annual savings of $1,900 per employee.

The learning from the experiment included the following:

  1. Working from home improves performance.
  2. Allowing employees a choice generated a far greater effect than requiring employees to work from home.
  3. A large sample of treatment and control employees allowed the firm to evaluate the impact on different types of employees.
  4. Management was surprised by the dramatic drop in attrition.

In addition to benefits to employees and employers for working from home, society as a whole sees benefits. These benefits include people choosing where they wish to live (instead of close to the employer’s office), less pollution and traffic congestion from work commutes, and an overall better family and community life because of the flexible hours.

However, improving productivity and saving money by having employees work from home does not work (pardon the pun) for everyone. People need to be able to recognize in themselves whether they have the discipline to perform as well as, or better than, working in an office environment.

Also, some individuals need the socializing that comes with working in an office – these individuals cannot thrive in isolation. For others, a careful balance must be struck.

As John James Jacoby (proclaimed lover of naps) writes: “For me, home was always where cool stuff happened, and the office was where I spent time waiting to go home to make more cool stuff happen.”  

Self-control and pride in one’s work is mandatory for working from home. An ability to complete tasks and communicate effectively with others is also a requirement. Trust is also a big element when working from home – employers need to trust that their employees are doing their best, but they also need to respect schedules and expectations.

I work from home most of the time and I cannot be happier about this arrangement. In fact, my most rewarding client work is done at home. This is likely because I am disciplined and have the necessary self-control about my work. It also helps that I love what I do.

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