A recent study published in the prestigious academic journal Nature provides critical insights into the hybrid working model, offering data that could shape the future of workplace policies. This study is one of the first randomized controlled trials examining the benefits of hybrid working. The findings were reported on by hundreds of publications including Forbes, Fast Company and CNBC, but what makes the research so significant? In this blog post, we will cover how the study was conducted, what it found and why it matters.
1,600 graduate employees of Trip.com were randomly assigned to one of two groups for a six-month period, with members of the first group working five days a week in-office, and those in the second group working three days a week in-office and two at home. The researchers measured the participants' job satisfaction, resignation rates and productivity.
The study had four main findings:
1) Hybrid working from home two days per week has no impact on the performance of the employee or the company.
2) Hybrid working from home reduced quit rates by one-third.
3) Quit rate reductions were largest for female employees, non-managers and employees with the longest commutes.
4) Before the experiment, managers estimated that hybrid work would reduce productivity by 2.6%. After the six-month period, they found that, in fact, productivity was slightly increased in the hybrid group.
The main reason that this study is so significant is that it's one of the first randomized controlled trials (RCT) of the benefits of hybrid working. Randomized controlled trials are the gold standard of scientific research. They minimize biases and allow for a more accurate understanding of cause-and-effect relationships. By randomly assigning employees to either a fully in-office group or a hybrid working group, the researchers can more reliably attribute differences in outcome directly to the working model itself, as opposed to any other variables. Most studies on remote and hybrid working up to this point have used observational data or self-reported surveys, which are more prone to selection bias and confounding variables.
One of the most common objections employers have made about offering remote or hybrid work is its potential negative impact on productivity and collaboration. This study directly challenges those fears by showing that hybrid working does not decrease productivity. In fact, the reduction in resignation rates suggests that employees are more likely to stay with a company that offers hybrid options, particularly women and those with long commutes. The study’s findings offer a strong data-driven argument for hybrid work, providing reassurance to employers that flexibility does not negatively impact productivity.
The study is also significant in that it uncovered variances in how different groups experience hybrid work. For instance, the significant reduction in resignation rates among women and employees with longer commutes highlights the potential for hybrid work to support greater equity in the workplace. However, the lack of reduced attrition among managers suggests that the effectiveness of hybrid models may vary depending on roles and responsibilities. This insight could help employers tailor their hybrid policies to better meet the needs of diverse employee groups.
For employers, the key takeaway from this research is clear: offering flexibility in work location for employees can be a valuable asset. By embracing hybrid working models informed by data, companies can enhance employee satisfaction, reduce turnover and maintain productivity.
However, if your company is offering remote and/or hybrid work options, it’s important to understand and manage the compliance risks created by having employees working in various locations. In particular, employees working across jurisdictions may unknowingly expose the organization to risks relating to corporate tax, immigration and labor laws.
As the working environment continues to evolve, it is crucial for organizations to stay informed of both the risks and rewards by engaging with ongoing research and being willing to consider different approaches to work location flexibility. The future of work is not a one-size-fits-all scenario, but with the right data, it can be a win-win for both employers and employees.
Read the editorial summary in Nature: https://www.nature.com/articles/d41586-024-01713-1
Read the full original study published in Nature: https://www.nature.com/articles/s41586-024-07500-2
If you want to learn more about mitigating risks associated with remote and hybrid work, you can learn more here: https://www.topia.com/solutions/distributed-workforce/