Whether you’re pushing for employees to return to the office, embracing hybrid work or opting to go fully remote, productivity is no doubt top of mind. While working from home is more common than ever, the jury is still out on whether remote employees are more or less productive.
While the research abounds, there’s evidence to support both sides. Keep reading to learn the latest.
Research that suggests working from home increases productivity
There’s plenty of evidence to suggest working remotely does, in fact, increase productivity. Here are some of the most compelling findings.
1. Fully remote workers are up to 40% more productive
According to a 2022 Future Forum Pulse survey, employees with flexible schedules have 29% higher productivity scores. They also report a 53% greater ability to focus compared to employees who work in the office full time. Those findings are reinforced by additional studies that found employees who work from home are 35% to 40% more productive than those who work in a traditional office — and that their work has 40% fewer mistakes.
2. 71% of remote employees achieve work-life balance
In one American Psychological Association survey, a whopping 96% of workers say it’s “very” or “somewhat” important to work for an organization that respects the boundaries between work and nonwork time. Why? Because employees who balance their personal and professional lives tend to be less stressed, more engaged and better able to focus at work. And according the Pew Research Center, 71% of remote workers say this is exactly what working from home helps them achieve.
3. Employee happiness increases 20% with remote work
An extensive study on happiness by Oxford University's Saïd Business School found that workers are 13% more productive when happy. This is great news for people who work from home, since another study of more than 12,000 workers found a direct link between remote work and employee happiness. In fact, employee happiness increases as much as 20% when employers offer the option to work 100% remotely.
4. Remote workers put in 48 extra minutes per day
Another reason to prioritize remote work? According to the National Bureau of Economic Research, employees who work from home save an average of 72 minutes each day that would otherwise go to commuting. They also give a lot of that saved time back to the company. On average, employees devote 40% of those minutes to doing extra work. These findings are reinforced by another study, where researchers concluded employees who work from home log an additional 48.5 minutes per day.
5. Quieter working conditions boost productivity 13%
One early experiment found performance went up significantly when employees work from home, increasing 13% over the course of the nine months. Fewer breaks and sick days meant workers devoted more time to actual work. Employees also reported more productivity per minute, thanks in large part to the quieter working conditions at home. They also experienced less exhaustion and burnout.
Research that suggests working from home decreases productivity
So, does working from home decrease productivity? While the above studies paint a highly productive picture of remote work, they don’t tell the full story. Other studies indicate that, at least in some instances, office work contributes significantly to employee performance.
1. Fully remote employees are 10% less productive
While many remote work studies and surveys tout increased productivity, others do the opposite. One working paper from Stanford’s Institute for Economic Policy and Research suggests fully remote employees are 10% less productive than their in-office counterparts. The paper, which analyzes multiple surveys and studies, points to a lack of in-person communication and team-building as the culprit.
2. 80% of remote workers admit to slacking off
While work-life balance is a big benefit for many remote workers, some take it too far. In one telling survey, eight in ten employees say they spend a significant amount of time on non-work distractions when working from home. More than 60% spend time on social media platforms, and 44% multitask work while watching TV. Many also confess to filling their days with activities they "wouldn't dare do in an office" such as playing with kids or pets, exercising and doing household chores. While these activities are an important component of work-life balance, they shouldn’t take away from productive focus time.
3. Remote teams are more siloed
In one meta-analysis from Microsoft, researchers found that collaboration declined as a result of the mass move to remote work in 2020. Compared to the cross-departmental collaboration that occurred pre-pandemic, communication networks are now significantly more siloed. This means teams have a harder time openly sharing data, exchanging ideas and problem solving.
4. Online meetings generate 15% to 20% fewer ideas
While remote teams stay connected virtually, several studies indicate video calls can’t replicate the productivity benefits of face-to-face interactions. In a laboratory experiment conducted at Stanford, the teams that met in person generated 15% to 20% more ideas than those who met online. A separate experiment involving 1,500 enterprise company engineers yielded similar results. The in-person teams came up with more ideas, and those ideas received higher ratings for originality. That’s because video calls cause people to focus on the narrow field of vision limited by screens, which in turn narrows their thinking. For this reason, 95% of workers surveyed by Harvard Business Review Analytic Services say in-person meetings are key to building and maintaining successful long-term relationships.
5. Loneliness impacts 20% of work-from-home employees
Loneliness and isolation significantly impact productivity, and remote work often contributes to these feelings. In a 2020 Buffer survey, 20% of remote workers named loneliness as their biggest struggle. Gallup's State of the Global Workplace report found that 25% of remote employees experience loneliness every day. And additional research suggests remote workers are 98% more likely to suffer severe work loneliness than colleagues who work in the office some or all of the time. The feelings of alienation and disconnection impact motivation and drive.
How to measure productivity when employees work at home
So, where are employees most productive? As you can see from the surveys and studies above, the results vary widely. Some people work best from home, while others need face-to-face interactions in the office. However, there’s only one way to accurately answer this question for your specific employees — you need to measure productivity.
For example, with ActivTrak’s hybrid and remote workforce management software, you can compare remote and on-site productivity in real time. This solution collects and analyzes employee activity data to show you:
- Who’s in the office, and when
- How people spend their time
- Where teams are most productive
Sign up for a free account to see if your employees are more productive when working from home or in the office. And if you’d like even more tips on how to apply ActivTrak’s location-based insights, request a demo for a personalized walkthrough.
