Some studies suggest that small businesses are more productive post-coronavirus with their newly minted remote workforces, but others say they aren't.
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updated November 28, 2023 · 4min read
There's conflicting evidence on whether the pandemic-related shift to remote work has positively or negatively affected productivity of the small business remote workforce.
On the one hand, there are studies like the Real Productivity Impact of Remote Work published by Valoir in May 2020 that show an overall minimal negative impact (1%) despite distractions and technology issues as compared to pre-coronavirus findings. And the 3,500-person (downloadable) survey by Azurite Consulting published in July 2020 that found that "employees can be more productive, more engaged, and more loyal without ever stepping foot into a physical office."
On the other hand, there are studies like the three-volume (downloadable) one by Aternity that found productivity dropped by 8.5% in Europe but increased 23% in North America.
Which view is right?
Andres Mejer, an immigration attorney and founder of Andres Mejer Law, is squarely of the less productive view. His Mexico office showed a nearly 25% decrease in productivity as compared to before quarantine. He found there were several factors that negatively affected production:
Director of Successful Release, Adam Sanders, also found about a 20% drop in production at the small NGO. In the office, his team relied on robust informal communication, but working remotely, his team has 25% more formal meetings.
In addition to more at-home distractions, especially for single parents who must home-school children, he notes that inferior equipment is a big problem.
He says, "technical issues pop up in at least 10% of our meetings, which [affects] focus during peak times when teams are online."
Other businesses show both an increase and a decrease in productivity. The culture of a group and the nature of the work prove to be why Clarify Capital has some teams thriving and others lagging in productivity.
"Our sales team, as a collective group, is less productive working remotely," reports Nishank Khanna, chief marketing officer for Clarify Capital. The reason is, "our funding advisors leverage the competitive energy from one another to make sales. When one teammate closes a sale, another is motivated to do the same." The newly remote team saw a significant decline in call volume, which the company attributes to the change in workplace dynamics.
"Our marketing team, on the other hand," Khanna says, "has been operating more efficiently remotely." Khanna says the high-energy office environment is much more distracting for the deep work that requires their focus for longer durations of time. Having control over their space has created the opportunity to complete that work.
Familiarity, flexibility, communication, and accountability seem to be the common threads through small businesses that are thriving with their new remote workforces.
Embracing technology and old fashioned, albeit creative, communication seem to be drivers of small business success in this post-coronavirus world.
by Diane Faulkner
Diane Faulkner is a ghostwriter, content marketing strategist, and editor based in Jacksonville, Florida. She special...
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