Boosting productivity whilst working from home

The Office for National Statistics reported in early 2020 that 1.7 million people, of the 32.6 million in employment in the UK work from home most of the time, while 4 million worked from home in the week previous to their survey. The number of those working from home is increasing each year, and COVID-19 has demonstrated to a great number of employers, who may have previously doubted, that working from home is possible. Technology has been a great enabler of remote working through improved broadband and a greater number of tools providing online collaboration capabilities.

Working from home and productivity

Many studies show that productivity increases when employees work from home. Analysis of this point published in the Harvard Business Review in 2019 showed increases in productivity of 4.4% in the USA, up to 13% in China when employees were moved to their home environment.

In the UK, research showed that the UK may realise productivity gains and reduced costs worth £8.1 billion through optimising flexible working options. This supports employee opinion which is typically that people feel more productive when working from home when compared with working in an office. This is at least in part due to the fact that there are fewer distractions in the home. Also, employees working remotely often take fewer breaks and have a lower likelihood of being absent from work with low level illnesses like colds. All of this increases overall productivity for the business.

Happiness and productivity

Another factor in productivity is happiness. There is evidence to suggest that employees are more productive when working from home because they are more satisfied. Flexible working opportunities are extremely highly valued by employees.

A study by Totaljobs showed that 28% of workers would move jobs to take a new one if it provided remote working options. Also, research by the Chartered Institute of Personnel Development in 2019 indicates that more people want to work flexibly than currently are able to do so, with more than two-thirds finding that they are unable to work flexibly in the way that they wish to. Remote working is one of the most sought after of all flexible working opportunities. It has even been found to be more popular than learning and development options.

The message is clear – employees want the chance to work from home and it will likely increase their happiness and productivity if offered to them because it provides an improved work-life balance. Employees spend less time commuting and this leads them to be more focused. Given that competitive advantage is increasingly derived from attracting and retaining top talent having an attractive working from home option is likely to be highly beneficial from a business perspective.

The role of trust

Trust is an important element within the psychological contract between employer and employee. The psychological contract is defined as the beliefs and expectations around obligations from the perspective of both the employer and employee. Each party wants the deal between them to be upheld. This is not documented, but it is based on perspectives of what each side thinks it should get for the commitment it is making. Mutual trust of each other is of paramount importance within this. When employees are permitted to work from home this demonstrates that they are trusted, which is in turn likely to increase their commitment. The level of flexibility afforded to workers permitted to work remotely is beneficial within the context of the psychological contract. This likely also drives productivity and it increases morale.

Working from home is not for everyone

A word of caution is needed – do not make the assumption that everyone wants to work remotely. Not everyone appreciates or values the opportunity to work from home. Some personality types are better suited to this than others. For example, extroverted people will be likely to find this harder than introverts. Extroverts enjoy the buzz of the office environment and gain energy from being around others.

Surprisingly, people from some regions of the UK have a greater interest in home working than those from other geographies. While working from home happens more in London, the South East and the South West, he greatest interest in remote working is found in London, Yorkshire and Humberside and the East of England. People have lower levels of interest in this in North East England, Wales and Northern Ireland.