International Finance
Industry Magazine

Work From Office: More Productivity?

IFM_ Work from Office
While being present in the office reduces productivity, mentoring increases it

According to research by EY-Parthenon using the Bureau of Labor Statistics, employee productivity in the United States has declined for five consecutive quarters since 2022.

A new Slack poll found that over two-thirds of CEOs are under pressure to increase employee productivity.

One may accuse the top business executives of obstinately herding their staffers back to the office like lost sheep, hoping that productivity would magically increase, despite the overwhelming evidence that a flexible hybrid work model is more productive than forced in-office labour for the same tasks.

Decoding the Bureau of Labor Statistics report

The statistics revealed that productivity in the world’s largest economy has plunged by the sharpest rate seen since the 1940s.

Given that productivity grew by 4.3% in the first quarter of 2021, the highest rate the country has seen in years, the latest figure suggests a huge 360* shift in the attitude towards work.

Chief economist at the Kenan Institute of Private Enterprise, Gerald Cohen, suggested that the productivity boost in 2021 was probably due to the coronavirus recession, as businesses were forced to shift to remote work overnight, but the data also suggests that the switch to remote work was also a success, in terms of increasing the employee productivity.

Myth of the ‘Magical Office’

Many CEOs continue to hold onto the myth that the workplace is the key to productivity, despite the flexible work model proving its worth more than anyone anticipated during the COVID period. They act like the workplace is a vending machine for productivity: insert employees and get more output. However, the evidence paints a different picture.

The office is more like a productivity black hole than a productivity nirvana, where focused work gets dragged into oblivion during collaboration, socializing, mentoring, and on-the-job training flourish.

For instance, a recent study by academics at the University of Iowa, Harvard University, and the Federal Reserve Bank of New York discovered that software engineers seated in different buildings on the same campus produced more computer programs than those placed next to colleagues. The engineers that worked in various facilities made fewer comments on each other’s code, though. In other words, they were more productive, but as a result, less seasoned programmers received less mentoring.

Simply put, expecting the workplace to increase productivity is akin to expecting a fish to ride a bicycle. The workplace performs a very different and crucial function. According to the EY-Parthenon study, the forced return to work and declining productivity are directly related. Statistics show that people work longer hours but produce less goods. Therefore, we need to stop attempting to squeeze a square peg into a round hole.

Using structured mentoring to balance work models

While being present in the office reduces productivity, mentoring increases it. However, mentoring requires conscious effort. Unfortunately, many firms have unwritten ideas that if you jam employees into an office like sardines, mentorship will miraculously occur. This haphazard strategy’s effectiveness is comparable to tossing spaghetti at a wall and praying it sticks. Inconsistent, ineffective, and dependent on variables like location, office politics, and human dynamics, office-based mentoring, particularly full-time mentoring, can have a limited influence.

On the other hand, an organized mentoring program provides a more deliberate and successful approach by matching mentors and mentees according to their talents, interests, and goals. With the help of this focused approach, it is made sure that knowledge exchange and personal development are carefully developed and fostered rather than left to chance.

The best elements of both in-office and remote work can coexist in a hybrid workplace where structured mentoring programs can flourish. However, to maximize productivity and employee satisfaction without forgoing the advantages of face-to-face interactions, firms can use this balanced strategy to restrict in-office activities to mandatory mentoring sessions.

Companies can make use of the benefits of both in-office and remote employment in a structured mentorship program. Also, plan targeted in-person mentoring sessions or workshops that respect employees’ need for flexibility in their work schedules while maximizing the advantages of face-to-face contact. When in-person interactions are not necessary, collaborative tools such as video conferencing, instant messaging, and instant messaging can help mentors and mentees communicate.

Moreover, setting clear goals and benchmarks for the mentoring relationship will make both sides more accountable and focused, maximizing the program’s effectiveness. Conventional one-on-one mentoring model can be avoided especially at the time when virtual seminars and forums can offer extra opportunities for knowledge sharing and building connections.

Tracking the development and performance of mentoring relationships allows businesses to pinpoint areas for improvement, hone their program over time, and guarantee its long-term effectiveness. The components that need to be added are autonomy and engagement.

The big irony of the office-centric mindset is that employee engagement and productivity losses suffer. According to a Gallup survey, employees who have the option to work remotely but are required to report to the office experience a lack of autonomy, which lowers engagement.

Consider the effects of this issue on the entire world: Low employee engagement, according to Gallup, cost the world an astounding $7.8 trillion in lost productivity in 2017. To put things into perspective, picture every CEO bashing their company’s piggy bank to pieces with a sledgehammer and then asking themselves why profits are down.

Cognitive biases: The undetected barriers

Cognitive biases frequently influence our decision-making when accepting flexible work and might skew our perception and judgment. Understanding these biases’ effects can help us get past the mental obstacles that stand in the way of productive mentoring. Let’s look at two critical cognitive biases in this situation: the status quo bias and functional fixedness.

Status quo bias is a cognitive bias that makes people choose the current situation over change, even though that change would result in better results. This prejudice may have a significant impact on CEOs’ and executives’ attitudes toward the notion of flexible hybrid work and organized mentoring programs, making them stick with the old-fashioned office-based work style.

Due to their tendency to see change as a danger to the status quo, executives may find it challenging to see the advantages of flexible work arrangements and hybrid mentorship programs. As a result, they might choose to stick with the comfortable office setting rather than consider the research that shows the success of remote work and structured mentoring.

Functional fixedness is a cognitive bias that keeps people from considering other applications or solutions for a given issue because they are fixated on the conventional or comfortable method. Because they may be unable to see the potential benefits of flexible work and organized hybrid mentorship programs, this prejudice can substantially impact how firms approach workplace efficiency.

The functional fixedness bias may keep leaders firmly convinced that the workplace is the only setting that can foster productivity. As a result, even when given strong proof, individuals could not see the possibilities of flexible work arrangements and hybrid mentorship programs.

Rethinking the workplace: A fresh approach

It’s time for CEOs to embrace the flexible work revolution and jump off the sinking ship of mandated in-office employment. Although cooperation, mentoring, and training can occur in the office, productivity is not one of them.

Let’s create work arrangements specific to each person’s function and preferences rather than putting everyone into the same box. It’s time to quit denying reality and accept that flexible hybrid work is the way of the future and will remain so. The only way to stop the spiralling decline in productivity and unlock the workforce’s full potential is to accept this fact.

It is abundantly evident from the research that returning to work under duress will not improve productivity—instead, it will exacerbate it. As demonstrated over the previous five quarters, forcing staff members back into the office is like beating our heads against a brick wall and expecting a different result. The moment has arrived for CEOs to abandon their antiquated beliefs and embrace the revolution in flexible hybrid employment.

The evidence overwhelmingly suggests that returning to the office does not increase productivity. The workplace is better suited for collaboration, socializing, and mentoring, while focused work gets dragged into oblivion. Companies must reevaluate their strategies and embrace the flexible work revolution to maximize productivity and employee satisfaction.

Companies can use structured mentoring programs to balance the benefits of both in-office and remote work. It’s time for CEOs to abandon their antiquated beliefs and embrace the revolution in flexible hybrid employment to unlock the workforce’s full potential.

What's New

ROSHN: Shaping Saudi’s Urban Vision


Regulation around AI is needed: iQmetrix Senior VP of Revenue Jason Raymer

IFM Correspondent

The battle against SIM card theft

IFM Correspondent

Leave a Comment

* By using this form you agree with the storage and handling of your data by this website.