Working From Home: Is this Good or Bad for Companies?

Lately, I have been hearing about more and more employees working remotely (from home) at least one day a week. This is a trend that has grown pretty steadily in the last 10 years, and research indicates the number of remote workers will only continue to rise.

So why the sudden debate over this trend’s impact on productivity and company costs? The recent media coverage of this can probably be attributed to Yahoo’s change in policy. A few weeks ago, Marissa Mayer, Yahoo Inc. CEO, announced she will be abolishing Yahoo’s age old work from home arrangements. Mayer believes that employees are more productive when they work together and are better able to bounce ideas off each other, something remote workers don’t experience.

For some companies, having employees report to the office makes sense, such as in Yahoo’s case. Many of their full-time employees who worked remotely “did little work” and some even started their own companies on the side. This is not to say that workers can never work from home if they need to, such as if a child is sick, but Yahoo’s ban is on full-time remote employees.

There are arguments both for and against home-based workers, and there are advantages and disadvantages to both. Many employers worry that employees who stay at home dawdle in their pajamas all day, and research suggests that workers who work from home at least one day a week are more likely to use Mondays or Fridays as their days to stay home, extending their weekend. Having employees in the office increases the chance they will be productive, but also increases costs in the form of real estate. Requiring workers to be in the office also requires said employees to have an office space in which to work.

Conversely, research has suggested that productivity is higher for companies who allow their workers to work from home at least once a week.  A study by Stanford University and Beijing University discovered that Chinese call-center workers used their time more efficiently and took fewer breaks, if they were allowed to stay home. Also, stay-at-home workers don’t require an office, and that can cut down on real estate costs.

The industries that have seen the most dramatic shift in home workers include management, business, and finance. In these industries, 1 in 4 employees work from home, and almost half are self-employed. Even government has seen a shift in home-based workers, particularly state governments. The biggest shift however is in the computer, engineering, and science fields. The amount of home-based workers has increased by 70% in 10 years (from 2000 to 2010).

While there is still debate about productivity and costs, Cisco conducted a study in 2008 that revealed Americans who work from home are happier. Whether this is because they don’t have to commute, or the idea of working from home alludes to flexibility, working from home does seem to have its advantages.

What do you guys think? Should companies allow their workers to work from home once a week, or should employees always be required to be on-site? Let me know in the comments below!

Thanks!

Julie

 

Sources:

http://mashable.com/2013/03/06/yahoo-work-from-home-ban/

http://online.wsj.com/article/SB10001424127887324539404578342503214110478.html?mod=googlenews_wsj