Telecommuting Benefits and Drawbacks for Employers: What Two Real Experiments Show
Opinions about remote work are loud and mostly based on anecdotes. Two randomized experiments, one from 2013 and one published in 2024, give employers something firmer to work with. This guide sets out the benefits and drawbacks with the evidence behind each, explains the limits of that evidence, shows which jobs suit remote or hybrid work, walks through a cost example with made-up numbers, and gives a 90-day pilot plan. It is general HR information, not legal advice.
How common is telecommuting?
In the US Bureau of Labor Statistics (BLS) American Time Use Survey for 2025, released in June 2026, 35 percent of employed people did some or all of their work at home on the days they worked. The pattern was uneven: about 51 percent of employed people aged 25 and over with a bachelor’s degree or higher worked at home on an average day, compared with about 19 percent of those with a high school diploma and no college. That gap matters for fairness, which we return to below. The survey measures time spent at home, not formal telecommuting arrangements, so treat it as a rough guide.
The benefits, with evidence
| Benefit | What the evidence shows | How far to trust it |
|---|---|---|
| Lower turnover | In a 2024 trial at Trip.com in China, a hybrid schedule with two days a week at home cut quit rates by about one-third (7.20% in the control group against 4.80%). The effect was significant for non-managers, women and people with long commutes. | A real randomized trial of 1,612 employees. One company, one country, and the co-author James Liang is a co-founder of Trip.com. |
| No loss of performance (hybrid) | The same trial found hybrid working did not affect performance grades or promotions over the next two years. | Depends on the equivalence margin the authors chose. Specific to that firm’s staff. |
| Higher satisfaction | Work satisfaction rose from 7.84 to 8.19 on a 0 to 10 scale in the hybrid group. | Self-reported. |
| Higher output (fully remote, one setting) | A 2013 experiment with call center staff at Ctrip, a Chinese travel company, found a 13 percent performance gain from working at home, about 9 points from more minutes worked and 4 points from more calls per minute. | Volunteers, in one job type, over nine months. Not a general rule. |
| Wider hiring pool | Remote and hybrid roles can draw applicants from beyond commuting distance. | Our reasoning, not a figure from these studies. |
| Lower space costs | Fewer desks may be needed if people share them. | Depends on leases and how many people come in. Often slower to realize than expected. |
The drawbacks, with evidence
| Drawback | What the evidence shows | How far to trust it |
|---|---|---|
| Promotion risk for people at home | In the 2013 Ctrip study, home workers’ promotion rate conditional on performance fell. The abstract does not give a figure. | Fully remote staff in one firm. The 2024 hybrid trial found no promotion difference. |
| Manager skepticism | In the 2024 trial, managers started out most negative about productivity effects (an average perceived effect of −2.6 percent) and became mildly positive afterward (+1.0 percent). Managers were the one group without a significant reduction in quitting. | Only 395 managers, so estimates are less precise. |
| Unequal access | BLS data shows that people with a degree work at home far more than others, so remote policies may help some employee groups while leaving others out. | Descriptive data, not a causal finding. |
| Weaker informal contact | Some employers report less casual learning and mentoring, especially for new hires. | Commonly reported but not tested in the studies above. Treat it as a risk to manage. |
| Security and equipment | Staff use home networks and devices, which need rules and support. | Practical, not a study finding. |
| Legal and tax complexity | Hours-worked rules, taxes and insurance can differ by where people live. | See the legal section below. |
What the two experiments really tell you
| Ctrip (published 2013) | Trip.com (published 2024) | |
|---|---|---|
| Who | Call center employees who volunteered | 1,612 employees at a technology company |
| What was tested | Working from home versus working in the office | Two days at home, three in the office, versus five in the office |
| Length | Nine months | Six months, with performance tracked for two years |
| Main results | 13% performance gain; less turnover; promotion rate conditional on performance fell | Quit rates down by about a third; no performance or promotion difference; higher satisfaction |
| Extra finding | When the firm let staff choose afterward, over half of the experimental group switched, and the gain from working at home almost doubled to 22 percent | The drop in quitting came mostly from non-managers |
| Main limit | Volunteers, one job type | One firm; one author is a co-founder of it |
The Ctrip follow-up is a useful warning in both directions. The authors concluded it “highlights the benefits of learning and selection effects when adopting modern management practices like WFH”: results improved when people could choose what suited them. Neither study shows what happens in creative, team-heavy or customer-facing work, and neither is a guarantee for your organization. The sources are the 2024 Nature paper on hybrid working and the 2013 NBER working paper from the Ctrip experiment.
Which jobs fit
This table is our own rule of thumb. Look at the tasks, not the job title.
| Task type | Remote or hybrid fit | Notes |
|---|---|---|
| Focused individual work (writing, analysis, coding, support queues) | High | Clear outputs make it easy to judge results |
| Collaborative problem-solving | Medium | Hybrid with planned in-person days often works |
| Training and onboarding new staff | Medium | Consider extra in-person time at the start |
| Work tied to a place (equipment, patients, customers on site) | Low | May be hybrid only for the admin part |
| Roles with security limits | Depends | Check data rules before deciding |
Three policy models
- Mostly on site. Simple and familiar, but it limits the hiring pool and may cost you people who want flexibility.
- Hybrid. Set days at home and set days together. The 2024 trial tested a fixed pattern, which is easier to plan than fully free choice.
- Remote. The widest pool and the largest change in how you manage, onboard and pay.
Many employers use different models for different roles. If so, publish the criteria so that decisions look fair. Pay is a related decision: our guide to competitive pay practices shows how to set ranges, including whether to pay by location.
A cost example
This is a made-up illustration for a 50-person company. Assume a hybrid program like the one in the 2024 trial, and apply that trial’s quit rates (7.20 percent without hybrid, 4.80 percent with) to your team as if they would carry over. They may not.
| Item | Calculation | Amount |
|---|---|---|
| Expected leavers per year, no hybrid | 50 × 7.2% | 3.6 people |
| Expected leavers per year, hybrid | 50 × 4.8% | 2.4 people |
| Leavers avoided | 3.6 − 2.4 | 1.2 people |
| Saving at an assumed $25,000 per replacement | 1.2 × $25,000 | $30,000 a year |
| Home-working stipend (assumed $50 a month each) | 50 × $50 × 12 | $30,000 a year |
| Equipment (assumed $800 each, one time) | 50 × $800 | $40,000 once |
In this example, turnover savings roughly cover the stipend each year, and the equipment is a one-time cost, so the program does not pay for itself on turnover alone in year one. Any savings on office space, hiring from a wider pool or higher output would be extra. Change the numbers to match your own cost per replacement and policy. If your staff turnover is already low, the savings will be smaller.
Managing remote and hybrid teams
- Manage by outputs. Agree on what good looks like and check results, not hours online.
- Hold regular one-to-ones. Weekly or every second week, with development and not just status.
- Write down promotion criteria. The Ctrip result is a reminder that people out of sight can be overlooked. Review promotion and rating data by work arrangement.
- Plan in-person time on purpose. Use it for onboarding, planning and relationship building.
- Set communication rules. See how to improve project communication for channels, response times and meeting rhythm.
- Train managers. Managers were the most skeptical group in the 2024 trial. Give them skills and evidence, not just a policy. See understanding performance evaluations.
Legal and compliance checks
These are things to raise with a lawyer or payroll adviser, not answers:
- Hours and overtime. In the US, wage and hour rules still apply to non-exempt employees who work from home, so you need a way to record time.
- Where people live. Taxes, registration and employment law can depend on the employee’s location, including across state or country lines.
- Safety and insurance. Check how workers’ compensation covers home workspaces.
- Data protection. Set rules for devices, networks and handling personal data.
- Accommodations and equal treatment. Handle requests for remote work as an accommodation consistently, and apply policies fairly.
- Expenses. Some places require employers to reimburse certain home-working costs.
Our guide to HR management challenges covers other common compliance risks.
A 90-day pilot
| Period | What to do |
|---|---|
| Before day 1 | Pick one or two teams with suitable tasks. Record today’s turnover, ratings, promotions, engagement and output. |
| Days 1–30 | Start the schedule. Brief managers. Fix equipment and security problems quickly. |
| Days 31–60 | Hold a survey and manager check-in. Adjust meeting days and communication rules. |
| Days 61–90 | Compare the numbers with the baseline. Decide whether to extend, change or stop. |
Ninety days is too short to see turnover effects, so also track leading signals such as engagement and manager feedback, and keep measuring for at least a year. Compare similar teams if you can, as the experiments did.
Common mistakes
- Deciding from anecdotes or one study. Test in your own setting.
- Treating all roles the same. Match the model to the task.
- Ignoring managers. Their buy-in shapes the outcome.
- Letting remote staff fall out of sight. Check promotions and development by arrangement.
- Skipping the legal review. Rules differ by location.
- Changing policy without notice. Staff plan their lives around it. Give clear reasons and time.
Learn more
If you want structured learning, online providers such as Coursera and Udemy list human resource management courses, some covering remote work and people management. We may earn a commission if you sign up, at no cost to you. We are not affiliated with any university. Check the syllabus before you pay. For related reading, see job satisfaction in the workplace and all HR guides.
Frequently asked questions
What are the benefits of telecommuting for employers?
Studies point to lower turnover and higher satisfaction under hybrid schedules, with no performance loss in the 2024 trial. Employers also report wider hiring pools and possible space savings.
What are the disadvantages of telecommuting for employers?
Risks include overlooked promotions for remote staff, manager skepticism, weaker informal learning, security and equipment needs, and legal and tax complexity.
Does working from home reduce productivity?
The two experiments found a gain in one fully remote call center setting (13 percent in 2013) and no performance difference under hybrid work (2024). Results may differ for other jobs.
Does remote work reduce turnover?
In the 2024 trial, hybrid working cut quit rates by about a third, mostly among non-managers. Your results may differ, so measure your own.
Is hybrid better than fully remote?
It depends on the work and the people. Hybrid keeps in-person time for collaboration and onboarding. Fully remote widens hiring but demands stronger management practices.
How do I make a fair telecommuting policy?
Base eligibility on tasks, publish the criteria, apply them consistently, and review promotion and pay data by work arrangement.
Do employers have to pay for home office costs?
It depends on where you operate. Some places require reimbursement of certain costs, and others do not. Check local rules.
How do I measure whether telecommuting is working?
Track turnover, performance ratings, promotions, engagement and output against a baseline, ideally with a comparison team, for at least a year.
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