Paper Summary
Title: Work from Home & Productivity: Evidence from Personnel & Analytics Data on IT Professionals
Source: University of Chicago
Authors: Michael Gibbs et al.
Published Date: 2021-07-13
Podcast Transcript
Hello, and welcome to paper-to-podcast. Today, we'll be diving into a fascinating study that I've only read 23 percent of, but hey, that's enough to give you an informative overview. The study is titled "Work from Home & Productivity: Evidence from Personnel & Analytics Data on IT Professionals" and was conducted by Michael Gibbs and colleagues from the University of Chicago. So, buckle up for a roller coaster ride through the world of working from home in the IT sector!
During the Covid-19 pandemic, Gibbs and his team studied over 10,000 IT professionals at a large Asian company and discovered that working from home led to employees working longer hours, with an 18% increase outside normal business hours. However, average output declined slightly, resulting in productivity falling by 8 to 19%. Employees with children at home experienced a larger decline in productivity than those without children. Women had a more significant drop in productivity than men, but this difference was not due to the presence of children.
The researchers also found that employees with longer company tenure fared better during work from home. A key factor in the decline of work from home productivity was higher communication and coordination costs. Time spent on coordination activities and meetings increased, while uninterrupted work hours shrank considerably. Employees communicated with fewer individuals and business units, both inside and outside the company, and received less coaching and one-on-one meetings with supervisors. These changes persisted over time, suggesting that increased coordination costs during WFH at least partially explain the drop in productivity.
The study's strengths include rich and extensive data sources, the researchers' engagement with the company's context and practices, and a robust empirical analysis using panel data covering 17 months. The research sets a high standard for future studies on the impact of remote work on productivity.
However, there are some limitations. The focus on a single large Asian IT services company may limit the generalizability of the findings. Additionally, the research relies on the company's internal data, which might be subject to biases or inaccuracies. Furthermore, the study does not explore the long-term effects of work from home on productivity or account for individual preferences or attitudes towards work from home.
Potential applications for this research include informing companies and organizations about the effects of working from home on productivity, particularly for IT professionals. The insights gained from this study can help businesses design and implement more effective work-from-home policies that address the challenges identified, such as communication, coordination, and collaboration.
Managers can use these findings to provide better support for employees working remotely, especially those with children at home or those who may be struggling with productivity. This may involve offering more coaching, communication tools, or tailored flexibility in work hours.
Moreover, the research can guide human resource practices and policies, including employee training and onboarding processes, to better prepare employees for remote work scenarios. Companies can use this information to create strategies that retain the benefits of remote work, such as reduced commuting time and increased job satisfaction, while mitigating the negative effects on productivity.
Lastly, the study can inform policymakers and educational institutions about the potential benefits and drawbacks of remote work, influencing the development of programs and initiatives to better prepare the workforce for an increasingly remote work environment.
And that's a wrap for today's episode! I hope you enjoyed this whirlwind tour of the world of IT professionals working from home. You can find this paper and more on the paper2podcast.com website. Stay tuned for more episodes!
Supporting Analysis
During the Covid-19 pandemic, a study on over 10,000 IT professionals at a large Asian company found that switching to work from home (WFH) led to employees working longer hours, with an 18% increase outside normal business hours. However, average output declined slightly, resulting in productivity falling by 8-19%. Employees with children at home experienced a larger decline in productivity than those without children. Women had a more significant drop in productivity than men, but this difference was not due to the presence of children. The study also revealed that employees with longer company tenure fared better during WFH. An essential factor in the decline of WFH productivity was higher communication and coordination costs. Time spent on coordination activities and meetings increased, while uninterrupted work hours shrank considerably. Employees communicated with fewer individuals and business units, both inside and outside the company, and received less coaching and 1:1 meetings with supervisors. These changes persisted over time, suggesting that increased coordination costs during WFH at least partially explain the drop in productivity.
The researchers analyzed the effects of working from home (WFH) in a large Asian IT services company during the COVID-19 pandemic. They used personnel and analytics data from over 10,000 skilled professionals at the company. The data included information on work hours, output, and productivity, as well as employee characteristics such as age, company tenure, gender, and presence of children at home. To understand the determinants of changes in productivity, the researchers looked at how productivity varied with employee characteristics, the nature of the work, and the extent of collaboration, networking, supervision, and coaching. They also studied how working patterns, such as time spent on meetings, collaboration, and uninterrupted work, changed during the WFH period. The analysis was conducted using panel data of 10,384 unique employees observed over 17 months, including both working from office (WFO) and WFH periods. The data allowed the researchers to investigate the drivers of productivity changes during WFH and to provide insights into the challenges and opportunities of implementing WFH policies in the future.
The most compelling aspects of the research are the rich and extensive data sources used, which provide a unique opportunity to measure productivity in a complex work environment. The study focuses on a large Asian IT services company, employing more than 10,000 skilled professionals, and analyzes both personnel and analytics data. This approach allows for a more in-depth examination of the factors affecting productivity when employees transition from working in the office to working from home. The researchers also made an effort to understand the company's context and practices by visiting the company headquarters and engaging in discussions with executives. This approach provides valuable insights into the determinants of productivity during WFH and helps to identify key issues for firms to address when implementing WFH policies. Another strength of the study lies in its robust empirical analysis. The researchers used panel data covering 17 months, both before and during the WFH period, and employed various statistical methods to ensure the reliability and validity of their findings. Overall, the research is compelling due to its thorough investigation of the topic, the use of rich data sources, and the researchers' engagement with the company's context and practices. This study sets a high standard for future research on the impact of remote work on productivity.
One possible limitation of the research is the focus on a single large Asian IT services company, which might not be representative of other industries or companies in different locations. The generalizability of the findings may be limited, as the study's setting and job roles are specific to the IT sector. Additionally, the research relies on the company's internal data, which might be subject to biases or inaccuracies. Another limitation is the potential impact of the pandemic on the productivity estimates during the work-from-home (WFH) period. Although the authors provide evidence to mitigate this concern, it is still possible that some unobserved factors related to the pandemic may have influenced the results. Moreover, the research does not explore the long-term effects of WFH on productivity. The study covers a relatively short period, and it might be worthwhile to investigate how productivity, communication, and collaboration evolve as employees and companies adapt to remote work environments over a longer timeframe. Finally, the study does not account for individual preferences or attitudes towards WFH, which could potentially influence productivity outcomes. Considering employees' personal characteristics and work preferences may provide a more comprehensive understanding of the factors shaping productivity in remote work settings.
Potential applications for this research include informing companies and organizations about the effects of working from home on productivity, particularly for IT professionals. The insights gained from this study can help businesses design and implement more effective work-from-home policies that address the challenges identified, such as communication, coordination, and collaboration. Additionally, the research can guide managers in providing better support for employees working remotely, especially those with children at home or those who may be struggling with productivity. This may involve offering more coaching, communication tools, or tailored flexibility in work hours. Furthermore, the findings can influence human resource practices and policies, including employee training and onboarding processes, to better prepare employees for remote work scenarios. Companies can use this information to create strategies that retain the benefits of remote work, such as reduced commuting time and increased job satisfaction, while mitigating the negative effects on productivity. Lastly, the research can inform policymakers and educational institutions about the potential benefits and drawbacks of remote work, influencing the development of programs and initiatives to better prepare the workforce for an increasingly remote work environment.