27 June 2024 | Nicholas Bloom, Ruobing Han & James Liang
A randomized control trial conducted by researchers at Trip.com in China found that hybrid working from home, where employees work two days a week from home and three days in the office, improves employee retention without negatively affecting performance. The study involved 1,612 employees in the Airfare and IT divisions, with 395 managers and 1,217 non-managers. The results showed a 33% reduction in attrition rates for the hybrid working group compared to the control group, with significant reductions for non-managers, female employees, and those with long commutes. The study also found no significant differences in performance reviews or promotion rates over two years, indicating that hybrid working does not harm performance. Additionally, managers' perceptions of the productivity impact of hybrid working improved from a perceived negative effect to a positive one after the experiment. The study highlights that hybrid working can be beneficial for organizations by reducing attrition, which is estimated to cost about 50% of an individual's annual salary for graduate employees. The findings suggest that hybrid working can be profitably adopted by organizations, as it offers benefits such as reduced commuting and improved work-life balance. The study also emphasizes the importance of experimentation in evaluating new working practices and technologies.A randomized control trial conducted by researchers at Trip.com in China found that hybrid working from home, where employees work two days a week from home and three days in the office, improves employee retention without negatively affecting performance. The study involved 1,612 employees in the Airfare and IT divisions, with 395 managers and 1,217 non-managers. The results showed a 33% reduction in attrition rates for the hybrid working group compared to the control group, with significant reductions for non-managers, female employees, and those with long commutes. The study also found no significant differences in performance reviews or promotion rates over two years, indicating that hybrid working does not harm performance. Additionally, managers' perceptions of the productivity impact of hybrid working improved from a perceived negative effect to a positive one after the experiment. The study highlights that hybrid working can be beneficial for organizations by reducing attrition, which is estimated to cost about 50% of an individual's annual salary for graduate employees. The findings suggest that hybrid working can be profitably adopted by organizations, as it offers benefits such as reduced commuting and improved work-life balance. The study also emphasizes the importance of experimentation in evaluating new working practices and technologies.