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Are Employees More Productive Working From Home?

Remote employees may be even more productive than those on-site, but a lot depends on how they’re managed.

Written by: Baruch Silvermann, Senior WriterUpdated Jan 07, 2025
Shari Weiss,Senior Editor
Business.com earns commissions from some listed providers. Editorial Guidelines.
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The world has undergone many lasting changes in recent years, with one of the most notable being the rise of remote work. Many companies transitioned to full-time work-from-home setups during the COVID-19 pandemic. This shift caused the number of people working remotely to triple between 2019 and 2021, according to the U.S. Census Bureau. However, what was originally a temporary fix has become the norm: Gallup data shows that over 70 million U.S. full-time workers can conduct their jobs remotely.

Now, working from home is the preference of many employees across nearly all industries — even as some companies look for employees to return to the office. Many employers have retained at least hybrid work policies, in which businesses allow employees to work from home a few days per week.

Number of people working remotely tripled between 2019 and 2021 graph

But how do these arrangements impact productivity? And do hybrid and remote work policies offer help or hindrance to business goals? Here’s what the research has to say and how managers can optimize hybrid and remote work arrangements.

Are employees more productive when working from home?

Remote workers face unique situations that can impact productivity for better and worse. Here’s a look at some of these factors, how they influence employees’ working experiences, and how management can support hybrid and remote employees to perform at their best.

graphic of a businessperson sitting at a desk with clocks surrounding them

Flexible scheduling, motivation and performance management tools

Working remotely requires employees to be more autonomous and self-motivated. Otherwise, their productivity could waiver, or they could get overwhelmed due to poor scheduling. A lack of separation between home and the workplace — in addition to the possibility of co-workers in different time zones — can lead to longer working hours or frequent smaller shifts for remote employees.

“We’ve seen a clear preference for flexible working hours,” said Rosi Bremec, chief operating officer of Game Lounge. “Our four-day workweek experiment showed how much employees value autonomy — well-being and productivity improved significantly during the trial. We also use tools like JOAN for hot-desking and project management platforms to track work patterns, which reinforces the demand for hybrid and remote options.”

A study from Owl Labs indicated that 55 percent of employees put in more hours while working remotely than they did at a physical office.

Percentage of employees working longer hours remotely is

Employee engagement and team connectedness

Remote employees also may find themselves out of the loop due to proximity bias. In such a case, leaders — intentionally or unintentionally — favor those who work in the office, leading to better opportunities and relationships for in-office employees. This can lead to decreased productivity and a lack of connectedness among a hybrid team.

“Remote employees are more likely to struggle with feelings of isolation and disconnect from their company, which makes managers partly responsible for their sense of connection to the team,” said Dovile Gelcinskaite, senior talent manager at Omnisend. “It can be fostered through regular check-ins, virtual and, where possible, in-person team-building activities.”

Risk of occupational burnout

Without the right management, remote work can also pose difficulties for employees who have trouble disconnecting from the workday. This practice can lead to burnout, increased stress and poor engagement. Despite these potential problems, remote work has its own productivity benefits.

“Remote employees’ engagement also depends on a healthy work-life balance, which is especially hard to sustain remotely, making such workers prone to burnout,” Gelcinskaite said.

How remote work impacts employee morale and productivity

Owl Labs’ research revealed that 83 percent of remote employees feel they operate at the same, if not higher, productivity level than they did while working in the office. Many survey respondents noted feeling happier and more productive at home; 70 percent stated that virtual meetings are less stressful than in-person meetings.

Productivity levels of remote employees graphic

Remote workers also enjoy flexible scheduling, which can reduce absenteeism and help companies save money. There is no need to take a day off here and there to meet personal obligations if you offer benefits such as flextime. And because remote workers often don’t have a loud environment and the distractions of office chatter, they can concentrate better.

“Remote workers should receive equal treatment to in-office employees, having access to helpful resources during onboarding and beyond,” said Gelcinskaite. “At Omnisend, we make sure that each new employee is provided with buddies and that their managers schedule regular one-on-one meetings to address questions, provide feedback and create an overall sense of inclusion. With the right tools, this is easily achievable remotely.”

The ability to work remotely and enjoy the perks that come with it is very meaningful to employees: 38 percent of those surveyed would be willing to take a pay cut to continue working in a remote or hybrid environment.

Willingness to take a pay cut for remote or hybrid work graphic

Employers should also keep in mind that team members’ dissatisfaction with their work location can reduce their productivity and overall engagement. Owl Labs found that 1 in 4 would even quit their jobs if working from home was no longer an option.

In addition to boosting productivity and retention, remote work has environmental benefits. Namely, it eliminates the daily commute, thereby improving a company’s carbon footprint. Also, without a commute, employees spend less time traveling. Instead, that time can be used to focus on work duties.

Preference for remote work graphic

How can you improve work productivity at home?

Although research indicates that employees can be more productive when working at home, it’s not guaranteed. Fortunately, there are several ways to improve remote productivity while ensuring a healthy work-life balance.

1. Create a schedule.

graphic of a businessperson marking off a life-sized calendar

While working from home provides flexibility, too much flexibility can compromise productivity. It’s essential to establish a schedule that you and your employees can consistently work most days.

“We have people who work in different time zones and people who can take their children to school. We have others with children with specific illnesses that need regular hospital visits; they can do all that and still do their job and do their best,” said Bremec.

As you create a remote work plan, each person on your staff will need to figure out the routine that works best for them. Encourage your employees to adopt a morning routine, just as they would if they were going into the office. This will help prepare their mindset for work even if they’re not in an office environment.

2. Set priorities.

Because your workers no longer have a supervisor looking over their shoulders, they need to take responsibility for managing their workflow. Encourage them to prioritize tasks to ensure everything gets done without dragging their workday into their after-hours relaxation time.

“We’ve invested heavily in tools and policies to support hybrid and remote work. From task tracking to hot-desking systems, we’re creating an environment where flexibility is a given, not an exception,” Bremec said.

Many remote workers find it helpful to create a to-do list or an “urgent, important, not urgent, unimportant” chart. This helps them focus on must-do tasks rather than on easier, less-important things. Whatever tool your employees use, help them get through their responsibilities during the allotted work hours to minimize their risk of burning out.

“Employees are most engaged when they feel part of a team that’s working toward shared goals,” said Jon Penlend, chief operational officer at Kinsta. “The key is that they need to be an expression of the company’s DNA such that leadership can champion those goals without reservation and something that the team works together to achieve.”

3. Minimize distractions.

Optimizing productivity means getting the most out of working hours, so it’s crucial for employees to minimize distractions. During weekly check-ins, ask team members to list their most intrusive tasks. Talk about those duties and distractions and what might make them feel less burdensome. Tools such as white noise machines may help workers maintain their focus, but you can strategize together to find the best solution for each employee.

“Make sure you have clear expectations about what is required of you, and if you don’t have clarity, ask for it. Once you have clarity, structure your day to support the work that matters to the outcomes you want to achieve,” said Penlend, offering advice to remote workers on how to maximize their own productivity. “This will mean effectively managing distractions such as Slack and email notifications, scheduling blocks of time for focused work, and finding ways to keep track of the deliverables you’re responsible for.”

4. Create a comfortable workspace.

graphic of a businessman inside of a glass bubble working on a laptop

No one can be productive when they feel uncomfortable and fidgety. That’s why it’s vital for remote employees to create a comfortable workspace. Ideally, this would be in a quiet area of the person’s home. But, even if they’re working at the kitchen table, they need to maximize the environment. The computer screen should be set at eye level, and their chair should have adequate back support. Again, use your weekly check-in to ask about each employee’s at-home workspace and if there is anything you can do to make it more comfortable.

5. Define boundaries.

When someone telecommutes, it can be easy to get lost in their work, putting them at risk of mental exhaustion. Help staffers define boundaries to support a healthy and sustainable work-life balance.

In addition to creating a comfortable physical space, they need to allot time for both work and personal obligations. Create a “clocking in” and “clocking out” routine, so you and everyone on your team can take adequate breaks. Research has shown breaks are an important aspect of productivity. You may even want to use high-quality time and attendance software to track hours.

TipBottom line
Have employees try a time management strategy, such as time blocking, to efficiently break down their work into manageable chunks. This allows them to focus on one task at a time and avoid distractions.

6. Get some exercise.

It’s also essential for remote workers to get some exercise in their day. They’re no longer walking from the train station or car to the office or popping out at lunch for a walk to the local sandwich shop. While based at home, employees should do some stretches during their break, get on a stationary bike or just head out for a walk. Physical activity can reset a person’s energy and give them a boost of endorphins, making them more productive.

7. Keep the “commute.”

graphic of a person leaning against a stack of oversized books

Finally, if you and your team are new to remote work, consider keeping a commute of sorts. Although they don’t need to spend time sitting in traffic, they can use this time in the day to take a little time for themselves. Some intentional activities, such as reading or light stretching, can help them mentally clock in and out — similar to how a commute changes people’s frame of mind.

FYIDid you know
It can be appealing to work from home in pajamas. But, getting dressed and sticking to daily routines as if you were commuting to the office can help employees prepare for the day ahead and get into the right mindset for a productive remote workday.

As you can see, while working from home does present some challenges, telework can help you and your workers become more productive. Everyone will need to think about their optimal work environment and how to handle tasks. But, once you get down to working, you should find that you get more done and have less stress with a flexible remote schedule.

Tejas Vemparala and Miranda Fraraccio contributed to this article.

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Written by: Baruch Silvermann, Senior Writer
A little bit about myself: My name is Baruch Silvermann and I am the founder of The Smart Investor, a free online academy for investors. Over 50,000 readers come to our site every month to get advice and understand how to make better investing & personal finance decisions.
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