Are you less innovative when working from home?

New research looks into whether remote and hybrid working stifle innovation

The global pandemic shifted the work setting to the home. As COVID-19 restrictions loosened, companies often struggled to put into effect return-to-work scenarios.

The hybrid model became an effective solution. However, the consequences of hybrid work haven’t been extensively explored yet. A big concern is whether innovation and creativity have declined as a result of this arrangement.

Killing or cultivating innovation?

To address this question, researchers at the University of Essex in the United Kingdom and the University of Chicago in the United States tracked more than 48 000 employees from a major Indian IT company who worked full time at the office, full time remotely, or partly from the office and partly from home. Even though innovation wasn’t a key component of their daily responsibilities, they received financial incentives aimed at fostering and rewarding innovative thinking.

The employees submitted ideas about process improvements, cost-saving measures or new products. The company first assessed these ideas, then either put them into practice or rejected them.

Findings showed that employees in hybrid or remote settings came up with fewer and lower-quality innovative ideas compared with those who worked full time in the office. The reason for this is that innovative ideas are usually generated during face-to-face interactions. The research was published in the journal ‘Scientific Reports’.

“Innovation in the workplace can occur through random, spontaneous ‘watercooler’ conversations between employees,” explained Dr Christoph Siemroth, senior lecturer at Essex’s Department of Economics, in a news release. “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.”

Brave new remote and hybrid world

Work-life balance is also a very important consideration for people who work from home. “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,” he added.

To improve innovation, Dr Siemroth suggests that companies should mandate days where employees must be at the office.

“Our findings imply that companies should take steps to coordinate when employees are in the office. Innovation does not work well if half the team is in on Mondays while the other half is in on Wednesdays. 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.”

Work models will continue to evolve in a post-pandemic world. Companies need to adapt and find the right mix between innovation and employee satisfaction, all while nurturing innovation.