I Would definitely go to work every day in my pajamas if given the opportunity. After all, I am guilty of being a former college kid who rolled out of bed and went to class in his sleepwear on occasion. But one-stepping that, if I could be working from home (WFH) every day then I just might live in my perfect world. No early morning, traffic-filled commutes. Plenty of snacks a step away and no queue to use the microwave at lunchtime. Sounds great, doesn’t it?

WFH, also known as telecommuting, was the hot topic during a young professionals panel at this year’s Network of Vertafore Users (NetVU) Conference. I distinctly recall one attendee stating that he wouldn’t even recognize his top producer if he passed him in a shopping mall because that employee rarely showed up at the office. But does this concept actually work? Can employees be as productive at home as in the office?

Earlier this year, Stanford University released findings from a WFH study conducted by the largest Chinese travel agency, Ctrip. Although the trial’s select group was chosen randomly, the experiment produced positive outcomes and even resulted in the business implementing the WFH option permanently.

The experiment

Ctrip’s senior management was seeking solutions to reduce rapidly rising office rental costs and high attrition rates. They decided to conduct a nine-month experiment that allowed participating call center employees to work from home four days a week and in the office for one. The experiment involved the Shanghai airfare and hotel booking department call center where the average employee spent 80 minutes commuting. Approximately half of the staff members volunteered. This number was weeded down to around 250 based on certain requirements: at least six months’ tenure and the availability of broadband and a separate room at home. Those with birthdays on even-numbered days worked from home while the remainder stayed at the office. Both sets of employees used the same Ctrip-provided equipment, experienced the same work flow and completed the same tasks, the only difference being the location.

The results found a 13% production increase for the WFH group—measured by number of hours worked (as opposed to taking breaks) per shift and number of calls completed per hour. This was the result of a 9% increase in the number of minutes worked each shift and a 4% increase in the number of calls. Staff WFH found greater convenience in grabbing beverages/snacks, taking lunch and using the restroom. Avoiding the daily commute freed up time to take care of personal and family matters that normally would’ve required leaving work early or coming in late. The relative quietness at home also contributed to the positive outcomes.

Postexperiment survey answers showed that employees could complete orders more quickly due to hearing the customers better and not having to ask them to repeat themselves. Less sick time taken was also reported as employees WFH felt well enough to work at home when not well enough to work at the office and potentially infect coworkers. According to the Stanford report, “The firm improved total factor productivity by between 20% and 30% and saved about $2,000 a year per employee WFH. About two-thirds of this improvement came from the reduction in office space and the rest from improved employee performance and reduced turnover.”

The long-term impact after implementing WFH full-time saw employee performance production rise 22%, almost doubling the initial results. This came from the employees who performed poorly at home returning to the office and those who performed well staying home. As for solving the attrition issue, the experiment showed positive results as well. The turnover rate was hovering around 50% a year—typical for the call center industry in China. Training new employees costs about eight weeks’ salary, and that doesn’t even include the process of identifying, screening and hiring. However, by the nine months’ end, the total attrition rate of those WFH was 17%, less than half of those working in the office (35%).

Positive points

It’s a good thing the Ctrip WFH experiment showed positive results because telecommuting is what employees want, especially Millennials. According to the third annual telecommuting survey by Staples—conducted in March 2014—71% said WFH was an important benefit when searching for a job; in fact, 10% even said they would take a cut in salary to have the option.

The top benefits of telecommuting for employees included a better work/life balance (74%) and savings on transportation (69%). Eighty-eight percent claimed that the concept is a win-win situation for them and the company, and the employers agreed. Sixty-five percent of employers reported happier staff members when WFH was present and 33% reported less absenteeism.

Lynn Harper, service manager at SilverStone Group, headquartered in Omaha, and secretary of the NetVU Young Professionals Chapter, couldn’t agree more with the positives behind WFH. SilverStone Group rolled out a WFH option three years ago, an option not offered by many of its competitors.

“We definitely use the WFH option as a hiring perk,” says Lynn. “We mention it in the first interview. It is definitely a selling point when extending an offer to a candidate.”

The working from home option is available to those who have been with the firm for six months or more— depending on their knowledge of the job—and those in good performance standing, including account managers and marketing consultants. Producers have always been able to work in and out of the office.

Account Administrator Leah Halter was hired by SilverStone Group as a WFH employee, reporting to the office approximately once per quarter. Agreeing with the Staples survey results, the work/life balance is her top benefit of WFH.

“Working from home has helped me find a sustainable balance between work life and personal life,” Leah says. “As an avid runner, I enjoy my morning workouts. Instead of sitting in a traffic jam, I am getting in a great workout and starting my day off in a positive way. I love the convenience of being able to eat a healthy balanced lunch without spending money/time going out to eat every day.

“I have also been able to work towards obtaining a new designation. Continuing my insurance education is going to help me better serve my clients, which is a great benefit to not only me but also my company,” Leah adds.

Lori Ruzicka, another SilverStone account administrator, works from home one day a week. “I have the ability to start my day earlier, when I am most efficient,” Lori says. “This includes starting work before transporting my children to school. When I don’t work from home I cannot get to the office until after I drop my children off, which is much later than I desire. The stress and hassle of driving to and from the office is also removed, plus my fuel expenditure is less. Not having to ‘dress’ for work is also a perk.

“When I’m WFH, I can get more hours in and have fewer distractions.

Since my breaks at home are shortened and minimal, accomplishing simple, quick personal tasks like emptying the dishwasher during the lunch break makes my to-do list that much shorter after work, which is always a bonus,” Lori adds.

Like Ctrip, an increase in production is also recorded when WFH. “Associates are able to have more flexible schedules to accommodate personal appointments with repairmen and doctors,” says Lynn. “This allows them to spend more time working versus commuting to the office and then leaving to go to the appointment. Often individuals work more hours on their work from home days. If they are working on a project, they don’t have to get up and drive home. They finish what they are working on.

“We are able to hire/retain talent regardless of their geographical location,” Lynn adds. “We have individuals in Kansas City, Missouri, and Chicago who work for us. We have had individuals move out of state and we simply couldn’t afford to lose their experience or work ethic. It made sense to offer the option to retain our talent.

“From a business continuity standpoint, when you allow individuals to work from home, you have your disaster recovery plan in place. If our agency was blown away in a storm, individuals are already set up to work from home and there would be no disruption in service to our clients,” Lynn says.

Summing up

For some managers, the idea of working from home leads to concerns about “shirking at home.” However, with modern technology, employees WFH can be monitored for their productivity.

“SilverStone is able to easily measure the production of the associates when they work from home,” says Lynn. The company provides phones for at-home employees, who have to supply their own computers. “We run a series of reports out of our agency management system that allows us to see how much was accomplished in the day. We also have a WFH contract that states that if management asks associates what was done during their WFH day, they must provide us with a list. This just adds another level of accountability for this option.”

Leah adds that “creating lists of items needing to be accomplished during designated time frames” has helped her stay focused. Lori adds, “I try to keep my work environment similar to that in the office, which includes background music to drown out distractions.” She uses her sunroom without a television as a dedicated work space.

It sounds like there are plenty of good things to say about working from home for those questioning the concept for their business. “Organizations looking into WFH—if they want to increase their revenue per employee—should activate this option,” says Lynn. “Our productivity has increased, to allow our staff to handle more accounts, more revenue, etc. When looking at the raw data on how much more can be completed when offering the WFH option, it would be hard to refuse the benefits that come with it.

“The insurance industry will be losing a large workforce in the next five to ten years, and in order to build talent for that change in our industry, it is important to look at attracting younger workers into the industry,” adds Lynn. “With an option like WFH, it shows a dedication to the younger generations and how they would like to work.”