One of the biggest stories to make headline news in recent weeks was about Yahoo’s controversial new work-from-home policy, or better said, their new work-from-home ban.
In late February, Marissa Mayer, the CEO of Yahoo, sent out a memo to all employees stating that they would no longer be permitted to work from home, but would have to come into the main office in Sunnyvale, California, if they wished to continue working at Yahoo.
Mayer’s reason for abolishing remote working was that face-to-face interaction among colleagues encourages better communications and overall teamwork. Mayer’s goal is probably to mirror the business model of her rival, Google, to create growth in her company. However, Mayer’s policy brings to light a debated issue in American small business.
Is working from home good for business?
Thousands of companies around the country, large and small, hire workers who gain the benefits of working from the comfort of their own living room couch or office. But the question business owners are asking themselves now is whether or not allowing employees to stay at home rather than come into work is helping or hurting their bottom line.
For Mayer and other business owners, the answer is no. Here’s why:
- Productivity. Those on the side against allowing work-from-home employment argue that at home, or in a coffee shop, employees only function at 75% of what they could do in an office. Any number of distractions—TV, radio, children, pet, the UPS guy, you name it—significantly decreases attention and focus while working.
- Shared space. Anti work-from-home employers insist that serious companies need a third space to think, plan, brainstorm, strategize, and meet. Virtual tools are useful, but should only be used as a necessary alternative to working together in the same place.
- Motivation. Lastly, opponents of working from home say that creating an exciting working space motivates employees to want to come to work, and worker harder when they are there. Motivation, as well as socialization, is lost when workers stay at home.
But not everyone agrees with these reasons to ban all employees from working at home, as is obvious from the backlash of criticism directed toward Yahoo’s policy. According to a Forbes survey, when employees were asked what the benefits of working from home were, the top ten responses were:
10. Environmentally friendly
9. More family time
8. Less stressful work space
7. Quieter atmosphere
6. No long commute
5. Less distractions
4. More productive
3. Avoid traffic
2. Save gas
1. Good work/home balance
As you can see, some of the answers contradicted what those against work-from-home had to say, leading to the unsatisfying conclusion that nobody actually knows if work-from-home really works.
All a business owner can do is to decide what they think works best for their company and give it a try. Each company operates differently and is uniquely affected by work-from-home policies. For Yahoo, Mayer decided it was time for a change—a policy she still stands strong behind.
With the debate of work-from-home employment now on the table again, undoubtedly more and more companies will be reevaluating their own work-from-home policies – besides forming a company, this may be one the most critical questions to address.