According to an August 2015 Gallup poll, 37 percent of American workers telecommute at least part of the time. The poll reports that about one in four telecommuters, or one in every 11 workers overall, earn money from home as opposed to going into the office on most workdays, which is a dramatic increase from 1995. Although there are several benefits to telecommuting, there are also downsides to this business model.
Workers may collaborate less in this type of setting, and employees who socialize together at the office may feel lonely when telecommuting from home. Video chats and conferencing technology are useful, but these technological wonders cannot substitute for small talk that helps employees form connections with each other. Interpersonal connections are important because many great ideas occur in a face-to-face setting.
In general, telecommuters are more likely to remain engaged with their jobs as compared to those who never work remotely. Workers who are engaged with their jobs tend to produce more, earn more profits for the company and engage better with customers.
In 2013, Stanford University professor Nicholas Bloom performed a nine-month experiment with employees from CTrip, China's largest travel agency. People who worked from home produced 13 percent more and worked 9.5 percent more hours versus those who went into the office. The rate of quitting workers among the telecommuters was half of that of the workers who showed up at the office every day.
Working from home may erode a company's culture due to less interaction among employees. When employees do not talk as much among themselves, innovation may decrease. Underperforming workers may go unnoticed by supervisors.
A company's overhead decreases with workers who telecommute because businesses pay less money for office space when fewer workers come to the office. However, technology must make up the difference for lack of face-to-face interaction. Employers should find ways to include as many employees as possible in the processes of decision-making, collaboration and innovation.
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