17 Jul Study Finds Hybrid Work Benefits Companies and Employees

The largest study yet on working-from-home professionals, led by Stanford economist Nicholas Bloom, reveals that employees who work from home two days a week are just as productive, likely to get promoted, and far less prone to quit. This groundbreaking research, published in the journal “Nature,” focused on over 1,600 workers at Trip.com, one of the world’s largest online travel agencies.

Bloom’s study shows that hybrid work has zero effect on workers’ productivity or career advancement while significantly boosting retention rates. The findings indicate that allowing employees to work from home two days a week provides a win-win scenario for both employees and employers. 

Notably, resignations fell by 33% among workers who shifted from full-time office work to a hybrid schedule. This reduction in turnover was especially pronounced among women, non-managers, and employees with long commutes, saving the company millions of dollars.

These results are particularly relevant as the debate over the merits of hybrid work continues in workplaces worldwide. Critics like Elon Musk and Jamie Dimon argue that remote work can negatively impact employee training, innovation, and company culture. However, Bloom’s research counters these views, demonstrating that a balanced approach of partial remote work can maintain productivity and career progression without sacrificing these critical aspects.

Yarooms has identified primary types of hybrid work models:

• Primarily in-office hybrid model: Employees spend most of their time in the office but have the flexibility to work remotely when necessary.
• Primarily remote hybrid model: Employees mainly work remotely but come into the office occasionally for specific tasks or meetings.
• Flexible hybrid model: Employees have significant autonomy in choosing where and when they work, with some mandatory on-site days or meetings.

Each model offers unique benefits, and understanding these can help global mobility specialists and organizations tailor their hybrid work policies to meet their specific needs.

Just as productive

The study found that employees working from home two days a week were just as productive as their fully office-based peers. By utilizing a randomized control trial, where employees with even-numbered birthdays worked full-time in the office and those with odd-numbered birthdays worked from home two days a week, Bloom and his team could accurately assess the impact of hybrid work on productivity and promotions. Performance reviews and promotions were tracked for up to two years, showing no adverse effects on career progression.

Reduced resignations

One of the most striking findings was the impact of hybrid work on employee retention. The shift to a hybrid model resulted in a 33% reduction in resignations. This decrease was mainly observed among non-managers, indicating that the flexibility of hybrid work is particularly valuable to these employees. For companies, this translates to significant cost savings, as reduced turnover means lower recruitment and training expenses.

Misconceptions and reality

Bloom’s study also addresses common misconceptions about hybrid work. Many managers initially feared that remote working would decrease productivity. However, these concerns were proven unfounded by the end of the experiment. Additionally, employees, particularly women, were hesitant to volunteer for hybrid trials, fearing negative judgment. The study’s results should alleviate these concerns, showing that hybrid work can be implemented without detriment to career advancement.

Broader Implications and future of hybrid work

The implications of Bloom’s research extend beyond Trip.com. With about 100 million workers globally adopting hybrid schedules, understanding the benefits and challenges of this work model is crucial. The study’s insights are valuable for other multinational companies considering or already implementing hybrid work arrangements.

Hybrid work models effectively blend the advantages of remote and on-site work, offering flexibility without compromising productivity or career growth. Companies like Amazon, Zoom, and HubSpot have successfully implemented hybrid models, demonstrating various benefits, including cost savings, higher productivity, and improved employee experience.

As the work culture continues to evolve, adopting hybrid work models can provide a balanced approach, combining the best aspects of remote and in-office work. This shift not only benefits employees by offering greater flexibility and work-life balance but also helps companies retain talent, reduce costs, and maintain productivity. As more research like Bloom’s continues to emerge, the evidence supporting hybrid work’s benefits becomes increasingly compelling, paving the way for its broader adoption in the professional world.