Explained: What new research reveals about the future of work from home

The debate over remote work continues. New data is showing that those that work from home are far less productive than those at the office. Let’s take a closer look: What does the data show? According to Fortune.com, economists Dave Atkin and Antoinette Schoar at MIT and Sumit Shinde at UCLA in a study showed that workers at home are 18 per cent less productive than office workers.

The researchers studied data entry workers in Chennai.

The study showed that a large chunk of that differential between the two groups began on the very first day of work – and the rest came as a result of the remote group picking things up slower. Interestingly, Those that favoured working from home were far less productive – 27 per cent – in a remote setting than when working in-office. Meanwhile, those who prefer being at the office were just 13 per cent less productive. The paper authors explain that discrepancy up to those who are less likely to prefer in-person work because of childcare eldercare responsibilities – which can disrupt the work day. “Workers who most need to be around the house during the workday are exactly the workers who are most distracted working from home,” Atkin told Fortune. “We think our results are most applicable to low-skilled job environments and those hiring new workers,” Atkin cautioned. Meanwhile, the latest working paper from WFH Research by Stanford’s Institute for Economic Policy and Research showed a 10 to 20 per cent drop in productivity for workers that are fully remote compared to their in-office brethren. It is to be noted that this paper has not been peer-reviewed. According to BNN Bloomberg, McKinsey & Co. in a study of its own company determined that the hybrid work model best works when its employees are in the office around half the time. [caption id=“attachment_12960662” align=“alignnone” width=“640”] Representational image.[/caption] Any time spent above that doesn’t improve performance and instead detracts from focus and flexibility, the study found. What do experts say? That managers need to carefully consider when taking a decision – sometimes on a case-by-case basis. In the first study, for example, the data entry workers were all new hires. “There’s obviously going to be a big difference between someone who already understands the work well and already knows the culture of the firm and how things are done, and now you’re saying ‘Ok, now you can work from home a few days a week,’” Atkin told BNN Bloomberg

“In terms of extrapolating, we do need to think carefully about that.”

Jose Maria Barrero, an economist and co-founder of WFH Research, told BNN Bloomberg that the first paper’s results reflect the findings of other studies. Barrero, however, pointed to the fact that companies could save a fortune on real estate through remote work – even if means their workers are less productive. “Many of the articles that come out and criticize remote work and provide evidence that remote work is less productive are really talking about fully remote work, when really what matters for most of the people who can work from home is hybrid,” Barrero told BNN Bloomberg.  “It’s important to keep those nuances top of mind.” Forbes noted that such findings need not necessarily spell the end of remote work. “Instead, they may lead to a more balanced approach. Hybrid work models, combining in-person and remote work, may emerge as a preferable solution. These models can provide the flexibility that many employees value while still maintaining the community and collaboration that offices offer. Companies may need to invest in better remote working tools and training to overcome the identified challenges,” the piece noted. The piece also noted that a dip in employees’ productivity does not detract from the  many advantages of remote work including the lack of commute, flexibility and a larger talent pool to choose from. “A balanced approach can maximize these benefits while mitigating the challenges,” the piece concluded. With inputs from agencies