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snake_d_ha March 22 2020, 09:07:44 UTC
BLOOM: One piece of research I did that connected very much to the open office was the benefits of working from home. So working from home has a terrible reputation amongst many people. The nickname “shirking from home.” So I decided to do a scientific study. So we got a large online travel agency to ask a division who wanted to work from home. And we then had them randomize employees by even or odd birthdays into working at home versus working in the office.

DUBNER: Now, this was a travel agency in China, correct?

BLOOM: Yes, so it’s Ctrip, which is China’s largest travel agency. It’s very much like Expedia in the U.S. And stunningly what came out was, one of the biggest driving factors is, it’s just much quieter working from home. They complained so often about the amount of noise and disruption going on in the office. They’re all in an open office and they tell us about people having boyfriend problems, there’s a cake in the breakout room. The World Cup sweepstake. I mean, the most amazing was the woman that told us about her cubicle neighbor who’d have endless conversations with her mum about medical problems, including horrible things like ingrown toenails and some kind of wart issue. I mean what could be more distracting than that? Not surprisingly, in that case, the open office was devastating for her productivity.

DUBNER: So, you find that overall, working from home raises what exactly? Is it productivity? Is it happiness?

BLOOM: So we found working from home raises productivity by 13 percent. Which is massive. That’s almost an extra day a week. So a), much more productive, massively more productive, way more than anyone predicted. And b), they seemed a lot happier; their attrition rates, so how frequently they quit. Part of this was they didn’t have the commute and all the uncertainty. And they didn’t have to take sick days off. But the other big driver is it’s just so much quieter at home.

DUBNER: You also do write, though, that one of the downsides of working from home was promotion became less likely. Yes?

BLOOM: Yes. We don’t know why, but one argument is “out of sight, out of mind.” They just get forgotten about. And another story would be that actually they need to develop skills of human capital and relationship capital, therefore you need to be in the office to get that, to be promoted. And then the third reason I heard, we talked to people working at home and they’d say, “I don’t want to be promoted, because in order to be promoted, I need to come in the office more so.” I’m happy where I am. It’s not worth it.

DUBNER: “I just want them to leave me alone.”
From Feakonomics "Yes, the Open Office Is Terrible - But It Doesn’t Have to Be"

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BLOOM: I mean, the most surprising thing from the Ctrip working-from-home experiment was after the end of the nine months, Ctrip was so happy. They were saving about $2,000 per employee working from home because they are more productive and they saved in office space. So they said, “Okay, everyone can now work from home.” And we discovered of the people in the experiment, about 50 percent of them who had been at home decided to come back into the office. And that seemed like an amazing decision because they’re now choosing to commute for something like 40 minutes each way a day. And also since they are less productive in the office and about half their pay was bonus pay, they’re getting paid less. All in all we calculated, their time and pay was kind of falling by 10 to 15 percent. But they were still coming in. And the reason they told us is it was lonely at home.

So people always joke the three great enemies of working from home is the fridge, the bed, and the television. And some people can handle that and others can’t. And you don’t really know until you have tried it. So what happens is people try it and some people love it and are very productive. Great, they just stick with it, and others try and they loathe it and they come back into the office.

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