Study: Hybrid Work Reduces Employee Attrition by 35%

According to a new study by Stanford University, hybrid work reduced attrition rates at a large technology firm by 35 percent and improved self-reported work satisfaction scores, with no negative impact on performance ratings or promotions. Since the pandemic, many companies have adopted a hybrid work model, after seeing remote work works. The hybrid approach may involve working two to three days each week at the office and the rest at home, allowing employees to split tasks best done in person and those best done individually.

The randomized control trial of 1,612 engineers, marketing and finance employees took place in 2021 and 2022 at the global travel agent Those born on an odd-numbered day had the option to work from home on Wednesdays and Fridays, while others had to work in the office full-time. Following the study, rolled out hybrid work to the entire company.

Besides improvement in attrition, the paper, circulated by the National Bureau of Economic Research, also highlighted how hybrid arrangements alter work schedules and habits. The findings show that employees worked fewer hours on remote days but increased the number of hours worked on other days, including on the weekend.

In all, employees worked about 80 minutes less when working remotely, but they tended to add about 30 minutes more on other work days and the weekend.

Additionally, work-from-home employees increased individual messaging and group video call communication, even when in the office.

The study also found no impact from work-from-home on performance reviews or promotions overall or any individual subgroup. However, those with the option to work from home reported slightly higher productivity.

The study also shows an 8 percent increase in lines of code written by that group compared to in-office employees, a measure of productivity for IT engineers.

“Overall this highlights how hybrid-WFH is often beneficial for both employees and firms but is usually underappreciated in advance,” the study’s authors – Nicholas Bloom and Ruobing Han – wrote.