Business Communication and Character

A new study identifies advantages and challenges of working from home (WFH). A New York Times article cites little research in the area, but a recent paper published in the Quarterly Journal of Economics provides insights for companies and employees considering WFH arrangements.

The study was at Ctrip, a Chinese travel agency. The abstract follows:

Call center employees who volunteered to WFH were randomly assigned either to work from home or in the office for nine months. Home working led to a 13% performance increase, of which 9% was from working more minutes per shift (fewer breaks and sick days) and 4% from more calls per minute (attributed to a quieter and more convenient working environment). Home workers also reported improved work satisfaction, and their attrition rate halved, but their promotion rate conditional on performance fell. Due to the success of the experiment, Ctrip rolled out the option to WFH to the whole firm and allowed the experimental employees to reselect between the home and office. Interestingly, over half of them switched, which led to the gains from WFH almost doubling to 22%. This highlights the benefits of learning and selection effects when adopting modern management practices like WFH.

Remote employees seem to suffer bias. A study author put it simply, “They can get forgotten.” Informal conversations and other face-to-face interactions increase belonging—they create “in groups” and “out groups.” As a result, some people are better known and trusted, particularly by senior leaders, who are more likely to be in the office. These relationships lead to more mentoring, sponsorship, and promotion opportunities. With more women wanting to WFH than men, this issue could increase gender inequality at work.

WFH employees should aim to increase their social presence—reducing the perceived physical distance. A Forbes writer offers good advice for building relationships from afar: