Early- and mid-career workers tended to choose locations based on future career considerations, while workers with longer tenures flocked to “retirement-friendly” destinations, such as Florida. However, work-from-anywhere policies could increase costs in work environments that require brainstorming and project-based interaction, says Choudhury, adding that more research is needed to fully understand the implications of remote work in more collaborative settings. “It’s trust—it’s the fear that people will shirk, and I think it’s the lack of clarity from the academic research as well,” Choudhury says. Harvard Business School Working Knowledge, Copyright © President & Fellows of Harvard College, How Companies Benefit When Employees Work Remotely, Letting independent workers choose their locations can boost companies, employees, and even the economy, according to research by, Sources: US Patent and Trademark Office; “(Live) and Work from Anywhere: Geographic Flexibility and Productivity Effects at the United States Patent Office” by Prithwiraj Choudhury, Cirrus Foroughi, and Barbara Larson, Source: “(Live) and Work from Anywhere: Geographic Flexibility and Productivity Effects at the United States Patent Office” by Prithwiraj Choudhury, Cirrus Foroughi, and Barbara Larson, Lumry Family Associate Professor of Business Administration, (Live and) Work from Anywhere: Geographic Flexibility and Productivity Effects at the United States Patent Office, Stuck in Commuter Hell? Here are five specific benefits of telecommuting and other flexible work options, and why they are a win/win. The USPTO provided the perfect opportunity. “People will gravitate to a location where they want to live, rather than where they have to live,” predicts Choudhury. However, work-from-anywhere policies could increase costs in work environments that require brainstorming and project-based interaction, says Choudhury, adding that more research is needed to fully understand the implications of remote work in more collaborative settings. The outbreak of Coronavirus has resulted in massive changes to the way we work. To put their findings in perspective and offer a framework for future research, the researchers emphasized the nature of a patent examiner’s work, which requires little coordination with co-workers on a daily basis. We're asking Working Knowledge readers to share their thoughts about remote work. Learn about fresh research and ideas from Harvard Giving employees the ability to work remotely also allows you to hire outside of normal commuting distance. TEAPP provided full autonomy. Prithwiraj Choudhury, an associate professor in the Technology and Operations Management Unit at Harvard Business School, and fellow researchers compared the outcomes of flexible work arrangements at the US Patent and Trademark Office (USPTO). Why Companies Should Let Employees Work Remotely And Travel More . What’s rarely acknowledged, however, is that remote work also benefits the employer. Early- and mid-career workers tended to choose locations based on future career considerations, while workers with longer tenures flocked to “retirement-friendly” destinations, such as Florida. This can be particularly beneficial in locations or professions with skills shortages, as small businesses can widen their nets and work with the most talented individuals, regardless of where they’re based. A growing number of companies are fast adopting such concepts like remote working to boost employee productivity and efficiency. Wang says that work-from-home stipends should be a priority for companies that have implemented remote working since the pandemic. How Companies Benefit When Employees Work Remotely. Flexibility and comfort in working provides gratification to employees, leads to quality work, that is most important element for growth of the companies. Just take a look at this stat: 69% of remote workers reported lower absenteeism than non-remote employees according to a 2014 study by PGi. “People will gravitate to a location where they want to live, rather than where they have to live,” predicts Choudhury. Could your leadership style be influencing bad behaviour. Remote working is a trend that isn’t going to slow down any time soon. Since work from home professionals aren’t dishing out for driving expenses and regularly get a good deal on espressos and … For Sales Inquiry [email protected] +91-9717270746 (India) +91-9717866746 (India) +1-8776599068 (USA) +44-203-807-3810 (UK) +66-09464 30863 (Thailand) (If we don’t pick up, drop inquiry.) “For the vast majority of such employers, remote work is a win-win, because the employee can move to a location of choice and save money in cost of living, and the employer will see higher productivity and lower attrition, and save on real estate costs,” says Choudhury. “The concern is that there is some underlying characteristic of people that is driving whether one wants to become a remote worker, and that characteristic is also correlated to productivity,” explains Choudhury. Employees with jobs that require minimal coordination could potentially use these findings in negotiations with a prospective employer, says Choudhury. Prior to TEAPP, examiners could work from home as long as they were within 50 miles of the USPTO headquarters in Alexandria, Virginia, but they had to report to the office once a week. Productivity increased 4.4 percent when employees moved from working at home on a limited basis to the location of their choice. Only when employees work remotely do they fully realize the added value of physical contact. NY Times Bestselling Author. Companies that offer remote work care most about what team members produce--not whether they're in the same room together. Harvard Business School Working Knowledge. Prithwiraj Choudhury, an associate professor in the Technology and Operations Management Unit at Harvard Business School, and fellow researchers compared the outcomes of flexible work arrangements at the US Patent and Trademark Office (USPTO). Quentoq gives you a platform where you can submit News/Press Release in order to take your business to the new heights by aiming to attract your target prospects. “For the vast majority of such employers, remote work is a win-win, because the employee can move to a location of choice and save money in cost of living, and the employer will see higher productivity and lower attrition, and save on real estate costs,” says Choudhury. What many companies have yet to embrace, though, is how a remote office environment can benefit them. The remote working group results not only showed a work productivity boost equal to a full day’s work, but also fewer sick days and a 50 percent decrease in employee attrition. Choudhury and his coauthors compared 600 examiners’ productivity under these various conditions. ForbesWomen. How companies benefit when employees work remotely. By Brenda Nice . Seeking to increase efficiency, the agency implemented the Telework Enhancement Act Pilot Program (TEAPP) in 2012. MeiMei Fox Contributor. Seeking to increase efficiency, the agency implemented the Telework Enhancement Act Pilot Program (TEAPP) in 2012. How Companies Benefit from Remote Workers? To study the productivity effects of work-from-anywhere policies, Choudhury looked for a setting that would allow the researchers to isolate productivity changes among workers with similar job functions under different remote-work conditions. Ailyn Pestana, junior designer and photo coordinator at Harvard Business School, created the charts above. You Can Still Be Productive, The Open Office Revolution Has Gone Too Far, Unexpected Exercise Advice for the Super Busy: Ditch the Rigid Routine, Is A/B Testing Effective? According to research, remote workers are more than 20% more productive when working remotely compared to in an office. By working remotely, employees are allowed to get their work done outside the conventional workplace/office. Evidence from 35,000 Startups, How 'Small C' Change Can Beat Large-Scale Rebuilding, Merck CEO Ken Frazier Discusses a COVID Cure, Racism, and Why Leaders Need to Walk the Talk, How Gender Stereotypes Kill a Woman’s Self-Confidence. While prior academic research has studied productivity effects of ‘working from home’ that gives workers temporal flexibility, ‘work from anywhere’ goes a step further and provides both temporal and geographic flexibility,” says Choudhury, who co-authored the paper, (Live and) Work from Anywhere: Geographic Flexibility and Productivity Effects at the United States Patent Office (pdf), with HBS doctoral student Cirrus Foroughi and Barbara Larson, executive professor of management at Northeastern University. ; The office is here to stay, but its role is set to change. In addition to enhancing productivity, remote work also helps companies by allowing them to recruit the best people, no matter where they happen to live, and to retain those remote rock stars after they’re hired. The trend might continue. As your company thinks about making this move, consider these top seven benefits of remote working. Daryl Wilkinson, head of digital development at … have publicly retreated from allowing workers to perform their jobs away from headquarters. Productivity increased 4.4 percent when employees moved from working at home on a limited basis to the location of their choice. have publicly retreated from allowing workers to perform their jobs away from headquarters. The team found that employees with liberal “work from anywhere” arrangements, similar to those offered at Akamai, NASA, and Github, among others, were 4.4 percent more productive than those following a more traditional “work-from-home” policy that gives schedule flexibility but requires workers to live near the office. “It’s trust—it’s the fear that people will shirk, and I think it’s the lack of clarity from the academic research as well,” Choudhury says. 40% of people feel the greatest benefit of remote work is the flexible schedule. http://www.forbesindia.com/article/harvard-business-school/how-companies-benefit-when-employees-work-remotely/55307/1, Why finance professionals need to change the way they work. To Choudhury, a deeper factor might underlie their reluctance. By now, most companies have at least heard of remote working and may have even allowed some employees to work from home on occasion. The shift in positive attitudes toward remote work is evident: 83% of employers now say the shift to remote work has been successful for their company, compared to 73% in our June 2020 survey. However, Uncle Sam is still interested in what you earn, regardless of where you choose to work, so plan on filing a returnif you earn more than $10,000 (U.S.) from an employer or $400 if self-emp… I personally believe that a company that utilizes remote workers is rewarded. Choudhury says the results have important implications for workers, who could potentially move to lower-cost areas, reduce commuting costs, and live closer to family and friends. 5. 5. In the same Owl Labs study, workers who had the option to work from home (either part-time or full time) reported a 91% better work-life balance. 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