Data Supports Benefits of Hybrid Work Arrangements
Despite the sense we are getting from recent headlines, participation in Work from Home arrangements has remained fairly constant since early 2023. A recent study published in Nature by Nicholas Bloom, Economics Professor at Standford and colleagues, Ruobing Han and James Liang, explored the effects of hybrid work on productivity, career advancement, and employee retention. The study followed 1,612 employees at Trip.com, a company that had no prior remote work policy, comparing those working five days a week in the office with those working three days in office. The findings revealed that hybrid work had no significant impact on productivity or career progression, but it greatly improved retention rates, reducing employee turnover by 35%.
Key takeaways from the study include:
No Productivity Loss: Hybrid work did not reduce productivity. Despite initial skepticism from managers, who believed remote work would harm productivity, after six months they adjusted their views, recognizing that hybrid work, if well-organized, could be effective. The arrangement where all employees came to the office on the same days each week proved crucial.
Enhanced Retention: Employees highly valued the ability to work from home a few days a week, citing benefits like saving commuting time and better work-life balance. This contributed to a significant reduction in attrition, saving the company millions of dollars in recruitment and training costs.
Performance Management Systems: Trip.com’s success with hybrid work was partly due to its strong performance management system. Employees were evaluated based on clear performance metrics rather than in-office presence, making remote work feasible without sacrificing oversight.
Broad Implications: Bloom's ongoing research suggests that hybrid work policies, when well-structured and supported by leadership, can be a win-win for both employers and employees. Moreover, data shows that remote work has stabilized in recent years and is unlikely to decline significantly.
The study also emphasizes the need for companies to embrace flexibility and adapt policies that reflect both employee preferences and organizational goals. Moving forward, Bloom plans to explore further how remote work affects cities, economies, and other dimensions of work culture.
If you are working through your company’s hybrid work structure, reach out to us at Conover Consulting where we have over 25 years’ experience guiding clients regarding compensation, leadership and culture.