While employers remain concerned about remote work’s impact on employee productivity, many employers do not measure or reward productivity — and some that do largely leave it up to manager discretion, according to a Payscale report released Oct. 4.
Additionally, Payscale posited that the real reasons for decreased productivity likely include higher-than-average turnover and insufficient pay, two intertwined aspects of work, the report said. Other reports have corroborated this finding, pointing to ongoing stress from world events exhausting workers in all fields.
“Insufficient pay and high inflation impacted quits rates, which increased to dizzying levels during the Great Resignation,” the report said. “High turnover can impact productivity for years, as it takes time to rehire and retrain talent.”
While 57% of organizations surveyed said they measure productivity, only 1 in 10 said productivity is “highly quantifiable” and only 4 in 10 said they reward increased productivity.
That disconnect can be seen in how organization leaders view remote work. While 84% of organizations surveyed by Payscale said executive leadership trusts workers who work from home, almost a quarter said leadership believes remote work would decrease productivity.
But what productivity is or means has long been difficult for employers to define. While the U.S. Government Accountability Office said in August that teleworking actually increased productivity, it also pointed out in the same report that many jobs lack tangible ways to measure productivity. Additionally, the long-term effects of factors like workforce attrition, collaboration challenges and reduction in office space are not yet fully measurable, GAO said.
Organizations also have not made many changes to their pay methodologies in the wake of remote work, Payscale noted. Part of that may be because many employers are still hiring workers who are close to local offices. However, more remote-first and fully remote organizations have changed their methodology, including considering a geographic component, Payscale said.
Generally, employers concerned about productivity may need to focus on employee preferences regarding in-office or remote work for strong retention and engagement, September survey results from checkr.com suggested — especially if, as Payscale indicates, turnover may be behind lackluster productivity.
