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Learn How Working from Home Boosts Productivity

A young man working at home with a laptop and papers on his desk.
May 25, 2023

The idea of remote work has been gaining popularity in recent years, changing our views on the nature of the workplace. The number of people in the workforce who do their jobs remotely has been rising gradually with development of novel technology and the rising demand for adaptability. About sixteen percent of companies throughout the world are permitting their staff to work remotely, eliminating the necessity for in-person communication between workers and their superiors. However there are a sizable proportion of businesses that still do not permit remote employment or embrace productivity monitoring software. The most common explanations cited by managers are the depletion of the company's culture and the decrease in productivity of individuals who work from home. But is there a decline in productivity? In this post, we'll determine whether remote working affects employee productivity.

An Overview of Working From Home, Its Benefits & Drawbacks

WFH allows individuals to carry out their professional tasks from the comfort of their own homes. Workers who have the option of working from home save time and money by not having to commute to an office every day. Employers generally give employees laptops and other collaboration tools to ease this arrangement, while employees depend on the Internet to get the essential tools and resources to execute their tasks efficiently. Many organizations relied on WFH to keep up their operations during the COVID-19 epidemic, and some continue to uphold this policy owing to its multiple benefits. We will look at the benefits and drawbacks of WFH here.

WFH benefits

  1. Saving time and money- By eliminating the need for travel, employees can save substantial amounts of both time and money.
  2. Work-life balance and increased flexibility- Employees can improve their work-life balance with the freedom to choose their own schedules when they work from home. This, in turn, promotes mental health.
  3. Lower stress levels- Working from home in a comfortable environment can reduce stress levels because employees are not subjected to the pressures and distractions of a busy office.
  4. Enhanced productivity- With reduced interruptions, workers can focus on their tasks, which eventually leads to higher productivity.

WFH drawbacks

  1. Productivity and motivation challenges- It might be difficult to stay motivated and sustain high production levels when co-workers or supervisors are not around.
  2. Communication difficulties- In remote work contexts, the lack of face-to-face engagement can create communication issues with co-workers, potentially causing miscommunication and incorrect assumptions. Employees may feel isolated because there is less social interaction than in an office setting.

Decoding the Working From Home's Impact on Productivity

Organizations may make informed judgments about introducing remote work policies by studying the benefits and drawbacks of WFH. While the benefits and drawbacks of working from home are obvious, one question lingers in the mind of everyone- Does WFH lead to greater or decreased productivity? Unfortunately, there is no answer to this.

One explanation for the uncertainty is the lack of results available for long-term impacts with a remote work environment. Positive effects on productivity have been noted as organizations gradually adapt to remote workers, but available data is still limited relative to the pre-pandemic age. This is because of the recent adoption of WFH, with remote employees constituting just a fraction of the workforce. Furthermore, during the pandemic, the abrupt transition to a WFH configuration was performed hurriedly, damaging job productivity.

A Data-driven Analysis by Leading Productivity Monitoring Software Providers in the USA

Recent research revealed some detailed data on WFH and worker productivity.

WFH prior to the pandemic

Stanford research before COVID-19 found that WFH was beneficial to businesses, increasing productivity by thirteen percent for a particular NASDAQ-listed organization. In this study, full-time employees reported improved job satisfaction, and WFH workers were fifty percent less inclined to leave the organization. This was linked with fewer sick leave and a more peaceful working atmosphere.

Pandemic stress & WFH

The COVID-19 outbreak raised additional concerns about working from home. According to a WeForum article, a 2020 survey of Japanese workers found that teammates were only sixty to seventy percent as productive operating from home during the epidemic. Furthermore, most WFH employees were entitled to work with family members and children at home when they did not make it to the office. A subsequent study published by WeForum found that working from home actually enhanced productivity by eight points. This revealed productivity increased as organizations devised better ways to help WFH employees.

Post-pandemic investigation

The sudden shift in work culture without any preparation from companies or employees during the pandemic wouldn't have offered the best opportunity to investigate worker efficiency in WFH environments. However, working from home may be beneficial for both employers and employees, according to post-pandemic studies, particularly when done consciously.

As per recent reports, WFH will boost overall productivity in the United States by 5%. For example, a monthly study in the year 2020 with 30,000 workers in the USA by the Mexico Autonomous Institute of Technology discovered that nearly sixty percent of the survey respondents were more efficient working from their homes than anticipated. According to the same survey, forty percent of respondents indicated that they performed more efficient WFH at the time of the pandemic.

Briefing on the studies that prove productivity increases with WFH

Several studies have found persuasive evidence that working from home increases productivity:

According to ConnectSolution, 77% of remote workers say they are more efficient when they work from home. Among them, 30% finish more tasks in less time, while 24% do an equivalent amount of work in less time.

The Avast Business 2018 Mobile Workforce Report confirms these findings, indicating that employees tend to be more productive when working from home rather than in the office. It implies that the office environment has a more significant impact on employee productivity.

According to Owl Lab's 2021 annual report, ninety percent of employees stated that they were at the same or even higher level of productivity when working from home in comparison to the workplace.

Also Read: Remote Employee Monitoring: 8 Ways to Make it Effective

Furthermore, according to the Future Forum's 2022 research, people who have the choice to work from home are four percent more productive than those who work entirely in the office. This survey also highlighted the benefits of work time flexibility, stating that employees with the flexibility to work at convenient timing reported a twenty-nine percent higher level of production compared to those who did not have the freedom to change their work timings. They also noticed a significant fifty-three percent improvement in concentration. These studies jointly emphasize the favorable impact on productivity when working from home, demonstrating remote workers' improved productivity and focus.

Wrap up

WFH, a pre-COVID-19 concept, has recently undergone tremendous modifications, entirely disrupting the working environment. While some managers may favor the traditional office setting, current trends suggest that remote jobs are the way of the future. Researchers expect that by 2023, one-fourth of professional employment will be performed remotely. Despite some early doubts from management, employees frequently report increased productivity as an outcome of WFH's flexibility. Implementing productivity monitoring software like More/Hour can provide significant insights and assist managers in optimizing performance in a remote work environment, ensuring that staff meet their objectives and are productive. Reach out to us now!

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