work...

Debunking a myth about 'working from home'

It may save a company money and make employees happier, but does it also cause productivity to dip?  

Surprising findings

Related links

• Myths about negotiating salary
• Career advice you must ignore
• Latest career advice, tips

Working From Home... 

Can Working From Home Work For You?

By Joe Issid
Monster Contributing Writer

Telecommuting is not a new concept. 

 

Since the widespread advent of the Internet and the ubiquity of easy-to-use VPNs, people have been able to efficiently work remotely, for years. 

 

The effects of this practice are still widely unknown, and often regarded with great skepticism by both employers and their employees. 

 

Recent research has attempted to uncover some of the mysteries of what working from home can bring to an organization and its resources.

As a small business owner, I can offer first-hand evidence of the paradigm shift that has taken place over the last decade.
 

Much has been written about the modern workplace, and countless studies performed on how to boost productivity without impacting attrition. 

 

How much do we actually know about the increasing number of people who work from home (either on a part-time or full-time basis)? 

 

According to Statistics Canada, 1.8 million (11.2%) Canadian employees worked from home, regularly, in 2008 – up more than 10% from 2000. 

 

Similarly, 1.8 million self-employed Canadians also worked from home, but this number constituted about 60% of the total – up more than 50% since 2000.
 

As a self-employed Canadian, I fall into the latter bracket. 

 

Not only do I run my small business from within the comfortable confines of my home, I also employ a small team of individuals who also work remotely. 

 

I also manage a large team of freelancers who contribute regularly to my business. 

 

I have never met a single one of these contributors, yet they continue to contribute critical services to my business.
 

It isn’t surprising, the most common reason cited by those questioned in the study, 25% in total, is working from home was a job requirement. 

 

Clearly, the upwards-trending figures demonstrate an increased desire for companies to (at least partially) forgo the traditional workplace in lieu of remote, home-based offices. 

 

The reasons for this seem to be economically motivated: companies can save tremendous costs related to real estate by having their employees work at home. 

 

Many companies are reluctant to do so, since the perception is there will be a sharp drop-off in productivity.
 

In my case, this is especially true. 

 

I actively seek employees who have previously worked from home, and have demonstrated a desire to work in isolation. 

 

Since I am not in a position to offer a centralized workplace, this is a hard requirement. 

 

How do I know if my employees are being productive? 

 

Truth is: I don’t. 

 

Recent studies are trying to shed some light on the matter.
 

According to Stephen J. Dubner at Freakonomics.com, most companies have no idea about the actual productivity levels of their home-based employees. 

 

James Liang, founder and chairman of Ctrip, a large Chinese travel website, teamed up with Nicholas Bloom, a Stanford economist, to answer this question and published their findings in a report in July, 2012.
 

 Productivity among home-based workers actually increased by 13% over the 9-month evaluation period. 

 

Of that increase, 8.5% was as a result of working more hours (ostensibly due to taking shorter breaks and fewer sick days). 

 

It is also thought this increased efficiency comes as a result of not having to deal with the distractions of a bustling office environment. 

 

According to co-author Bloom: “In the office, it's very noisy, you can hear the guy next to you on the phone or the person across the desk crying because their boyfriend has just split up with them. 

 

"It's horribly distracting”.
 

Additionally, those working from home checked in and out of work with far greater punctuality. 

 

No longer victim to the perils and negative effects of commuting, or having to deal with negative office culture, home-based workers performed their jobs more effectively and with greater personal satisfaction.

 

Based on these findings, it should come as no surprise the attrition rate of the home-based workers dropped by 50% during the 9-month trial. 

 

As an employer, these types of findings can help determine how to keep employee productivity levels high and how to possibly attract and retain better talent.
 

While my enterprise is too small to provide a statistically relevant conclusion, attrition levels are low and I rarely have to discipline any member of staff for failure to perform their work. 

 

With extremely affordable (often free) communication tools, it behooves small business owners to embrace the work-from-home model.
 

True, I certainly miss the camaraderie and human element of a physical workplace. 

 

However, the productivity and retention levels of my staff are very high and at almost no cost to me. 

 

As long as people are happy and producing quality work, it is becoming increasingly irrelevant as to where said work is being performed.
 

Working from home might not be for everyone. 

 

Culturally or socially certain employees may find it out of the ordinary or difficult to adapt.

 

If you consider the “pros” and alternatives that you may obtain in the long run, you may find having a homier, quieter, and more relaxed, work space in the comfort of your own living room, can actually make your job easier and more enjoyable.

 

***