Concerns that working away from an office can stifle innovation have been validated in new research.
A team of economists from the University of Essex and University of Chicago followed more over 48,000 employees from a large Indian IT company during periods of working from the office, working from home and hybrid working.
During that period the employees were asked to record ideas about process improvements, cost savings or new products.
“Whilst the quantity of ideas did not change during the working from home period compared to working in the office, the quality of ideas suffered,” the research report said.
“During the later hybrid period, the quantity of submitted ideas fell and innovation suffered, particularly in teams which did not coordinate when they worked at the office or from home.”
Lead researcher Chistoph Siemroth said many business leaders had voiced concerns over innovation suffering through new modes of work introduced during the COVID-19 pandemic.
The new research, published in the journal Scientific Reports, suggested some of these concerns could be valid.
“Innovation in the workplace can occur through random, spontaneous ‘watercooler’ conversations between employees,” Dr Siemroth said.
“However, these ‘productive accidents’ are less likely to occur when employees work from home. Our research has found that innovation is suffering as a result.”
“Of course, this cost to innovation may be acceptable, given the significant benefits for employees in terms of work-life balance, which makes more flexible employers more attractive.”
Dr Siemroth said the findings implied that companies should take steps to coordinate when employees were in the office.
“Innovation does not work well if half the team is in on Mondays while the other half is in on Wednesdays,” he said.
“Instead, set days where the whole team is expected in the office. While this limits the flexibility of hybrid work, our results suggest that innovation benefits as a result.”
The full report can be found on the University of Essex website.
