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Unveiling the Hidden Potentials of Remote Work Productivity

Embracing telecommuting productivity is crucial for success in today's business landscape.

byDr. Gleb Tsipursky
May 4, 2023
in Workforce
Reading Time: 4 mins read
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Unveiling the Hidden Potentials of Remote Work Productivity

To fully harness remote work benefits, businesses must equip employees with appropriate tools and resources, including technology for remote work, such as laptops, internet access, and collaboration tools.

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  • A 2020 Stanford University study revealed that remote workers were 5% more productive than office-bound counterparts. By spring 2022, this figure rose to 9%. 
  • Companies offering remote work options can also save on cost-of-living expenses by hiring talent in more affordable regions, both domestically and internationally. 
  • Forward-thinking business leaders should seriously contemplate integrating remote work policies into their organizations. 

As the COVID-19 pandemic pushed businesses to embrace telecommuting, many were surprised by the resulting boost in productivity. A new study from the University of Chicago’s Becker Friedman Institute disclosed that employees saved around two hours weekly in 2021 and 2022 through remote work. Interestingly, workers devoted 40 percent of this saved time to their jobs, and approximately 11 percent to caregiving tasks. 

This equates to an extra 45 minutes of work per week! It’s no wonder that substantial data indicates increased productivity for telecommuting employees. 

As a highly experienced expert in hybrid and remote work, I have consulted for many companies on this topic. My clients consistently express astonishment at the undeniable data demonstrating the productivity surge resulting from remote work.  

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Telecommuting Productivity Data 

A 2020 Stanford University study revealed that remote workers were 5% more productive than office-bound counterparts. By spring 2022, this figure rose to 9%, as businesses became adept at remote work practices and invested in supporting technology. Another study, using employee monitoring software, corroborated these findings, showing that telecommuters were considerably more efficient than in-office workers. 

The National Bureau of Economic Research (NBER) highlighted a significant increase in productivity for remote work-heavy sectors like IT and finance. These industries experienced productivity growth surges from 1.1% between 2010 and 2019 to 3.3% since the pandemic’s inception. Conversely, sectors requiring physical presence, such as transportation, dining, and hospitality, saw productivity growth rates drop from 0.6% between 2010 and 2019 to a decline of 2.6% during the pandemic. 

In addition to enhanced productivity, remote workers often accept lower wages in exchange for work-from-home flexibility. Another NBER study found that remote work slowed wage growth by 2% during the pandemic’s first two years, as employees viewed it as a valuable perk. A survey of 3,000 workers at leading companies like Google, Amazon, and Microsoft discovered that 64% would prefer permanent telecommuting over a $30,000 salary increase. 

Telecommuting Productivity: Real-world Examples 

One of my clients, a mid-sized IT services firm, found that remote work enabled employees to complete tasks faster and more efficiently by eliminating commute time and allowing for customized work environments. 

A large financial services company reported that telecommuting led to heightened focus and concentration among employees. They discovered that employees were better able to stay on task and dodge distractions while working from home, resulting in a notable productivity increase. 

Companies offering remote work options can also save on cost-of-living expenses by hiring talent in more affordable regions, both domestically and internationally. This factor influenced one client, a late-stage software-as-a-service startup, to provide all-remote positions, thus enabling more effective allocation of financial and human resources.  

Telecommuting Contributes to Enhanced Work-Life Balance 

Remote work also improves work-life balance, preventing burnout and boosting productivity and employee retention. A medium-sized retail company found that telecommuting allowed their back-office staff to balance work and personal responsibilities more effectively, resulting in increased satisfaction and performance. 

Similarly, a large healthcare tech company reported that telecommuting helped employees better manage their time and energy, leading to fewer distractions and interruptions while focusing on work and personal responsibilities. 

Optimizing Telecommuting Productivity 

To fully harness remote work benefits, businesses must equip employees with appropriate tools and resources, including technology for remote work, such as laptops, internet access, and collaboration tools. Additionally, companies must offer proper training and support to facilitate efficient and effective work. 

Clear communication channels and protocols are also essential for remote employees to collaborate and stay connected with colleagues. Regular team meetings, virtual check-ins, and other communication methods help maintain employee engagement and keep them informed about company developments. 

Conclusion 

Embracing telecommuting productivity is crucial for success in today’s business landscape. The advantages of remote work, including heightened productivity, increased focus, and an improved work-life balance, are too significant to overlook. Forward-thinking business leaders should seriously contemplate integrating remote work policies into their organizations. 

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Tags: ProductivityRemote WorkWorkforce
Dr. Gleb Tsipursky

Dr. Gleb Tsipursky

Lauded as “Office Whisperer” and “Hybrid Expert” by The New York Times, Dr. Gleb Tsipursky helps leaders use hybrid work to improve retention and productivity while cutting costs. He serves as the CEO of the future-of-work consultancy Disaster Avoidance Experts. Dr. Gleb wrote the first book on returning to the office and leading hybrid teams after the pandemic, his best-seller Returning to the Office and Leading Hybrid and Remote Teams (Intentional Insights, 2021). He authored seven books in total, and is best know for his global bestseller, Never Go With Your Gut: How Pioneering Leaders Make the Best Decisions and Avoid Business Disasters (Career Press, 2019). His cutting-edge thought leadership was featured in over 650 articles and 550 interviews in Harvard Business Review, Forbes, Inc. Magazine, USA Today, CBS News, Fox News, Time, Business Insider, Fortune, The New York Times, and elsewhere. His writing has been translated into Chinese, Spanish, Russian, Polish, Korean, French, Vietnamese, German, and other languages. His expertise comes from over 20 years of consulting, coaching, and speaking and training for Fortune 500 companies from Aflac to Xerox. It also comes from over 15 years in academia as a behavioral scientist, with eight years as a lecturer at UNC-Chapel Hill and seven years as a professor at Ohio State. A proud Ukrainian American, Dr. Gleb lives in Columbus, Ohio.

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