get richer

Work from home folks are happier, earn more than 9 to 5 job persons

The possibility of emailing or calling someone from anywhere has given rise to different working conditions. Working remotely is becoming the norm of today. This kind of work allows plenty of spontaneous interactions with colleagues along with great focus and productivity. According to the professor of Stanford Graduate School of Business, Nicholas Bloom the office environment has become somewhat outdated. Set up during the Industrial Revolution, that system is not flexible enough for absorbing today’s sophisticated communications methods which are not helpful for firms as well as employees. Working from home is a future-looking technology which has an enormous potential to absorb futures technological changes.

In order to verify his claims, China’s largest travel agency Ctrip was studied by Nicholas Bloom which has 20,000 employees working for it and a market capitalization of about $20 billion. The company has its Headquarter in Shanghai and the leaders there were interested in knowing the impacts of working from home. For a study, the solicited worker workers volunteered in which half worked from home for about nine months, visiting the office once a week whereas the rest worked only in the office. The study was carried out by Bloom over a period of two years. The results showed a massive improvement in the performance of the workers i.e. 13% improvement in the employees’ performance who worked from home.

Also See: Doing Freelancing the right way

Bloom also found out that an office may be considered organized but it actually is a super noisy place. People who work from can concentrate better. Moreover, there was a 50% decline in the resignations when people were allowed to work from home. The benefits of working from home were not limited to employees only; managers also gained a lot by spending less of their time on advertising, training, recruiting, and on promoting. The experiment led Ctrip to provide the option of working from home to all employees which made the company gain $2,000 more profit per person at home.

According to Bloom, this study is going to help to remove the negative impression regarding work from home. The employees who work from home are productive, happier, and the firms can make more profits by spending less on the recruiting and training people.

There are a lot of ways to work but working remotely is a good tool to have in the mix.

This post originally appeared at Insights by Stanford Business. and QZ

Facebook Comments

Written by Hisham Sarwar

https://www.youtube.com/watch?v=OAi5HVJbixQ

That is all you ever need to know about me but let me warn you, freelancing for me is a journey, certainly not a destination :)