Speaker
Nicholas Bloom, PhD
Professor of Economics
Stanford University
Keywords
Remote Work; Hybrid Work; Job Performance; Attrition
Key Points
- Dr. Bloom conducted a randomized controlled trial at the Trip.com headquarters in Shanghai to test the efficacy of a hybrid WFH model. 1,612 employees in the IT and Airfare divisions were randomized to come into the office either five days/week (the control arm) or three days/week, with the option to work remotely on Wednesdays and Fridays (the intervention arm).
- The research team collected attrition and performance data during the six-month intervention period and 18-month follow-up period.
- Over the six-month intervention period, quit rates were 33% lower in the treatment group than in the control group. The impact on attrition varied by group, with the greatest improvements among non-managers, women, and employees with long commutes. Satisfaction survey results were also more positive within the treatment group.
- They found that hybrid WFH had no impact on performance reviews, promotion rates, or lines of code written. At the outset, managers were skeptical of the effect hybrid WFH would have on productivity; over the course of the trial, however, their attitudes became more favorable.
- In the interest of reducing costs incurred by turnover, the company rolled out the hybrid WFH option to all employees shortly after the trial concluded. The research paper is open-access; read it in Nature.
Discussion Themes
To maximize the success of the hybrid WFH model, employees should coordinate the days that they come into the office with their colleagues and employers should base the number of days they allow people to work from home on their capacity to measure performance.
Though employees worked slightly fewer minutes on average on WFH days, taking advantage of the increased flexibility to pick up children, go to appointments, etc., they made up for that time by working more minutes on in-office days and on weekends.
There are tradeoffs involved in the decision to WFH: Though an employee may have more flexibility and even be more productive, they may also be less likely to get promoted compared to peers that are working in-person.
Going forward, Dr. Bloom predicts the percentage of hours worked from home will continue to increase due to three practical factors:
- Leases are expiring, and as they expire, companies will downsize to save money on real estate.
- Younger executives are more in favor of WFH.
- The technology is improving, making it easier and cheaper to WFH.