Research: Productivity decreases with ‘Work from Home’

During the Covid-19 pandemic, companies worldwide were compelled to offer employees the option to work from home, prioritizing everyone’s safety. While some companies continue to embrace remote work, others have adopted hybrid models.

A recent study by the Massachusetts Institute of Technology and the University of California, Los Angeles, revealed that remote workers are 18 percent less productive than their office counterparts. The study focused on newly recruited data entry operators in India, comparing those working from home to those in the office. Surprisingly, two-thirds of remote workers experienced decreased productivity from day one. Those working in the office demonstrated faster learning rates and overall better performance, emphasizing the productivity gap.

Economist Jose Maria Barreiro acknowledged that remote work may be less productive, yet remains a viable option for companies aiming for cost-effective management approaches.