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Alternative work arrangements hit the headlines earlier this year as Best Buy and Yahoo both ended their programs after disappointing earnings at both companies.  But a review of the extensive academic research on this topic revealed by Ed Frauenheim  in his recent article found that companies would benefit from an analysis of the research as they create, review and adjust their policies.

CEO Joly of Best Buy stated that the alternative work approach missed the mark by delegating too much authority to employees.  At Yahoo, published reports stated that CEO Marissa Mayer reversed telecommuting options after it was determined that those workers were slacking off.

The gain clarity on this issue, let’s review the findings from academic research. The research supports flexibility with some caveats.

One study found that telecommuting  reduced work/family conflict and improved job performance and satisfaction.  Another study found that workers sense of having enough time for themselves was linked to higher levels of energy and lower levels of emotional exhaustion.  But a 2005 study found that the ideal number of hours for workers to telecommute is 15, with job satisfaction increasing as workers approached the 15 hour mark, but decreased after 15 hours.  It seems the limited connectivity of electronic media along with the decreased socialization factor negatively impacts the benefits of telecommuting.

Also discovered in research is the fact that flexible work hours offer more benefits than flexibility of the workplace.  Workers with children at home may experience role conflict, which interferes with work productivity.  When studying the effects of social loafing on a virtual team, it was found that if team members were busy people with many family responsibilities, their individual performance suffered.  Teams comprised of less busy members generally avoided loafing, as did teams with members of both busy and less busy people.  It seems that the less busy people help to keep the busier people on task.

Conclusion

Given the vast amount of research on this topic, companies should consider this research as they develop their alternative work programs.  It will be interesting to see how the new approach works for Yahoo and Best Buy.  I suspect they may bring back alternative work options at some point, perhaps with some revisions from their former policies.