Work From Home People Earn More, Quit Less, and Are Happier Than Their Office-bound Counterparts

An anonymous reader shares a report: Working from home gets a bad rap. Google the phrase and examine the results -- you'll see scams or low-level jobs, followed by links calling out "legitimate" virtual jobs. But Stanford Graduate School of Business professor Nicholas Bloom says requiring employees to be in the office is an outdated work tradition, set up during the Industrial Revolution. Such inflexibility ignores today's sophisticated communications methods and long commutes, and actually hurts firms and employees. "Working from home is a future-looking technology," Bloom told an audience during a conference, which took place in April. "I think it has enormous potential." To test his claim, Bloom studied China's largest travel agency, Ctrip. Headquartered in Shanghai, the company has 20,000 employees and a market capitalization of about $20 billion. The company's leaders -- conscious of how expensive real estate is in Shanghai -- were interested in the impact of working from home. Could they continue to grow while avoiding exorbitant office space costs? They solicited worker volunteers for a study in which half worked from home for nine months, coming into the office one day a week, and half worked only from the office. Bloom tracked these two groups for about two years. The results? "We found massive, massive improvement in performance -- a 13% improvement in performance from people working at home," Bloom says.