Nature | Hybrid Working from Home Improves Retention Without Damaging Performance (2024)

HYBRID WORKING | Nature | Hybrid Working from Home Improves Retention Without Damaging Performance

This study demonstrates that hybrid work boosts employee retention and satisfaction while maintaining performance levels, countering executive concerns about the productivity of remote work.

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Introduction

A groundbreaking study published in Nature explores the impact of hybrid working arrangements on employee retention, job satisfaction, and performance. This six-month randomised control trial, conducted at a Chinese technology company, provides valuable insights into the effects of hybrid work schedules on various aspects of employee and organisational outcomes.

Key Insights

• Hybrid working improves retention and job satisfaction

  • The study found that hybrid working reduced quit rates by one-third.

  • Job satisfaction scores improved among employees with hybrid schedules.

• Performance remains unaffected

  • Null equivalence tests showed no significant impact on performance grades over the next two years of reviews.

  • No evidence was found for differences in promotion rates over the next two years.

• Demographic variations in benefits

  • The reduction in quit rates was particularly significant for non-managers, female employees, and those with long commutes.

• Productivity perceptions shift

  • Managers revised their views on hybrid working's effect on productivity from an initial perceived negative impact of -2.6% to a positive +1.0% after the experiment.

Recommendations

• Implement hybrid work options

  • Consider offering employees the option to work from home twice weekly to improve retention and job satisfaction.

• Address demographic differences

  • When designing policies, pay special attention to the benefits of hybrid work for non-managers, women, and employees with long commutes.

• Monitor performance metrics

  • Regularly assess performance and promotion rates to ensure hybrid arrangements do not negatively impact these areas.

• Educate managers

  • Provide training and information to managers about the potential benefits of hybrid work to address initial scepticism.

Conclusion

This study proves that a hybrid schedule with two days of working from home per week can significantly improve employee retention and satisfaction without compromising performance. Organisations considering or refining their hybrid work policies can use these findings to inform their decisions and potentially reap the benefits of increased employee retention and satisfaction.

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