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Are Remote Workers Good or Bad for Business?

June 19th, 2009 @ 8:56 am

6 Comments

Categories: Career, Group Dynamics, Managment, Schools, Strategy

Tags: Davenport Co., Worker, Office, Moss Kanter, Corporate Governance, Business Operations, Corporate Law, Stacy Blackman

Countless workers dream of trading in their nail-biting commute and bustling office for the peace and quiet of home, where they can get things done without interruption while wearing their favorite pair of jeans. Many companies are also on board with letting staff work remotely, and some even give their employees a great degree of geographic freedom, allowing them to live hundreds of miles from company offices.

While most agree that working remotely can be good for employees, there is less consensus on whether or not it benefits employers.

The benefits of working in an office

Tom Davenport, the President’s Chair in Information Technology and Management at Babson College, recently blogged about Eclipsys, a software company that changed CEOs because the board of directors wanted someone to run the company from its Atlanta headquarters. (The previous CEO lived in Silicon Valley.)

Davenport quotes the company’s new CEO, Philip Pead, as saying, “You can’t deny how effective it is to be able to sit down and have lunch with another leader and resolve an issue quickly.”

It’s especially important, Davenport says, for senior managers to work in an office setting. He explains, “researchers have shown that their jobs typically consist of a variety of short, and frequently unplanned, interactions. It’s much easier to accomplish these when you are all in the same vicinity.” He cites companies such as IBM, AT&T and Sun as “dialing back” their virtual offices and encouraging employees to work at least part time in offices.

The benefits of working remotely

On the other side of the issue is Davenport’s fellow Harvard Business blogger and Harvard Business School professor Rosabeth Moss Kanter, who wrote two months ago that allowing workers to stay home at least one day a week would “raise productivity, save energy, decrease pollution, reduce traffic congestion, cut household expenses, increase quality of family life and keep educated women in the work force.”

Why working remotely doesn’t always work

If there are so many benefits to working remotely, then why are some companies moving away from the practice?

Moss Kanter believes that many companies aren’t ready for the stay-at-home revolution:

Without a culture of strong accountability, collaboration, trust and personal responsibility, remote work doesn’t work. That culture is missing in too many organizations. Managers don’t always know how to coordinate and communicate with people they do not see face to face; they must value the work product and not the face time.

It seems that no matter how technology advances to make working at home feasible, there will always be the human side of the equation to consider. How does your company deal with remote workers? Does working at home work for you?

Home office image courtesy of Flicker user dierken, CC 2.0

 
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  •  
    1

    scribbler60

    06/19/09 | Report as spam

    RE: Are Remote Workers Good or Bad for Business?

    "Managers don?t always know how to coordinate and communicate with people they do not see face to face; they must value the work product and not the face time."

    So, clearly, it's a problem that management has and needs to be addressed. The weak link isn't the work-from-home strategy, it's ineffective management.

    Companies are moving away from the practice simply because they can. With rising unemployment, there is little incentive for managers and leaders to actually manage effectively; it's much, much easier to simply insist on "face-time." It's the lazy manager's way out.

  •  
    2

    Daniel56

    06/21/09 | Report as spam

    RE: Are Remote Workers Good or Bad for Business?

    I see the problem as one of "comfort zone". Having
    established remote working environments, I seen
    management respond favorably to the increase in
    productivity and tranquility, but then balk when the remote
    worker is not responsive to "crisis" meetings that have
    nothing to do with a particular problem, but more on a
    particular manager needing to "see"how a worker is keeping
    his time. Its like the manager is afraid that even if the
    worker is more productive, if they can't account for the
    workers time (not productivity), then they are somehow not
    on top of their game. Managers have to be re-trained to
    judge the worker by the work, not the "time" it takes to
    complete it.

  •  
    3

    kscribner

    06/21/09 | Report as spam

    If CAN work...

    The success of having remote workers depends on the worker and the organizations management. In the past I have been a work from home employee - thousands of miles away - but visited the home office often to be sure i was engaged. Management of that organization also was excellent at communication which made things easier.
    While working from home has benefits for employers and employees - there is no substitute for face time - and even in today's tech driven environment - that IS important.

  •  
    4

    mariekeguy

    06/22/09 | Report as spam

    RE: Are Remote Workers Good or Bad for Business?

    I totally agree with scribbler60's point about "The weak link isn't the work-from-home strategy, it's ineffective management."

    Unfortunately the recession has become an excuse for lazy management. However I do believe that forward thinking organisations that embrace remote working will reap the benefits.

    ..."a variety of short, and frequently unplanned, interactions" - Have people not heard of Twitter!
    wink

    Lots more discussion on remote working challenges and successes on my blog:
    http://remoteworker.wordpress.com/

    Thanks

    Marieke

  •  
    5

    Ryan Freed

    06/22/09 | Report as spam

    RE: Are Remote Workers Good or Bad for Business?

    @Kscribner, I completely agree with you. The success of remote workers depends heavily on a companies culture.

    For example, I visited Best Buy and they have no set hours they have to be at work, the management style is extremely loose. As long as they get quality work done they can come and go to the office whenever. This was built into the foundation of the company. Although change is possible, it is very hard, and the strongest company cultur'e are usually set at the beginning.

    "there is no substitute for face time - and even in today's tech driven environment - that IS important."

    100% agree with this statement. An employee is way more effective if he has valuable face time with the the rest of the employees. They need to get to know each other's methods of work and personality's for team building purposes. However, employees still can have 1 day of remote work a week or every once in a while to change things up and increase productivity.

  •  
    6

    crodgers

    06/22/09 | Report as spam

    RE: Are Remote Workers Good or Bad for Business?

    On occassion I myself work from home. Maybe once a month. I know on those days I will be able to tackle what I might not be able to do in my office that has a revolving door and email system. I almost always complete a day of work from home knowing and feeling I have been much more productive and return to the office with that same feeling. I do although believe you have to have a strong work ethic and it takes discipline. Home factors can come into place that can play a factor. Even if I devote some time to something at home I will almost always have had a more productive work day. Since I hold a top level management position I do feel the need to limit my time out of office. Even though I am remotely connected and Blackberry connected 24/7. I do however have an area of concern when someone asks me to work from home since we have not established the goals and expectations. This should be addressed prior to having management or any other staff opting or asking to work from home.

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