Out of the Office, on the Clock
Last week, Marissa Mayer, the chief executive of Yahoo, issued a new policy requiring all employees to report to work at Yahoo offices and not remotely. While the company is now distancing itself from the national debate it has stirred, the decision flies in the face of flexible work schedules that characterize many tech companies and is an affront to working parents trying to balance job demands with raising a family — an issue that rankles some because it comes from Mayer who is herself a new mom. What is lost or gained when workers telecommute? And how should companies decide whether and when to allow people to work remotely?
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1. Workers Know Where to Work
Get clear on what needs to get done and how it's being measured, and stop managing how and where people do it.
2. One Approach Does Not Fit All
'Telecommuting' has lost much of its meaning, as the nature of work is changing and the lines between work and time off are becoming fuzzier.
3. Workplaces Can Adapt to Reap the Benefits
Many organizations find it easiest to ban telework, but employees do it anyway. Without structure, they overwork and feel anxious.
4. Working From Home, and Wondering ¡®Why?¡¯
While we sometimes hate the meetings and the cubicles, they do locate us in social space and by so doing give us meaning.
5. At Home, Work a Bit Longer and Get Lots More Done
In my experiment, home workers produced 13 percent more, while working 9.5 percent more hours by reducing commuting and sick leave.
Sample Essay
At Home, Work a Bit Longer and Get Lots More Done
I have always worked from home – in government at the Treasury, in consulting at McKinsey and as a professor at Stanford. But my friends would always tease me: was I ¡°working remotely¡± or just ¡°remotely working¡±?
Piqued by years of teasing, I decided to uncover the truth about working from home. To do this I teamed up with CTrip, China¡¯s largest travel agency, to run an experiment. We rounded up 250 volunteers for home working and ran a lottery. Those whose birthdate ended in an even number worked from home four days a week. Those with odd birthdays stayed in the office. The experiment ran for nine months.
We found three results. First, home workers worked harder and smarter. They produced 13 percent more, while working 9.5 percent more hours by reducing commuting and sick leave.
Second, home workers were happier. A lot happier. Rates of workers quitting dropped by half.
Third, working from home slowed down promotion. Controlling for employee performance, we found the rate of promotion for home workers was almost half that of their office-based colleagues.
Financially, the experiment was also a success for the company. By saving office space, reducing attrition and increasing productivity, CTrip saved $2,000 per employee per year. This was such a success that the company expanded the option to most workers in its call center.
But working from home is not for everyone. Only 50 percent of employees volunteered, and many changed their minds after a few months. They complained of loneliness and the reduced chance for promotions.
So my advice to companies and workers is to experiment. Many firms find working from home is a huge success. Typically this involves letting employees work at home one or two days a week, keeping employees connected to the office while providing flexibility and home quiet time. Certainly I¡¯m enjoying the peace at home writing this.