Hybrid work wins: more satisfaction, less turnover, no productivity loss — Study by Nicholas Bloom
Nicholas Bloom's study at Trip.com highlights a breakthrough in workplace strategy: a structured hybrid work model enhances employee satisfaction, significantly reduces turnover, and maintains productivity. The findings indicate a 35% reduction in turnover and increased satisfaction, particularly among women and those with long commutes.
The study, conducted by Nicholas Bloom, James Liang, and Ruobing Han involved randomly assigning over 1,600 employees from marketing, finance, accounting, and engineering to a fully in-office schedule or a hybrid model (3 days in-office, 2 days work-from-home).
The Society of Human Resource Management reports that each resignation typically costs firms at least 50% of an employee’s annual salary—approximately $30,000 per departure for Trip.com. Trip.com study found that hybrid work significantly reduced employee quit rates by over a third, resulting in millions of dollars saved annually. This finding directly challenges concerns about remote work hindering performance.
The study found no difference in productivity between employees who worked from the office five days a week and those who followed the hybrid model.
Key findings on productivity and retention
In the two-year study, the productivity, performance review grades, and promotion rates remained identical for both fully in-office and hybrid workers. Meanwhile, hybrid employees reported higher job satisfaction and significantly lower turnover, a change that Bloom, a professor of Economics and an expert on remote work, highlighted in a LinkedIn post. “Hybrid work can enhance employee satisfaction without compromising productivity—a rare win-win scenario for both employees and employers.”
Lessons for managers on Implementing hybrid
The study identified some essential practices for successful hybrid work adoption:
- Robust performance management: Trip.com’s six-month performance review system allowed managers to assess employees consistently without the need for in-office monitoring.
- Coordinated in-office days: With designated work-from-home days on Wednesdays and Fridays, Trip.com ensured that employees didn’t commute to an empty office, avoiding frustration and boosting collaboration.
- Leadership support: Trip.com's CEO and C-suite openly backed hybrid work, making it easier for the model to succeed across departments.
Financial and cultural benefits for modern workplaces
Beyond reducing turnover, the hybrid model gave employees greater flexibility to balance personal and professional needs. Although employees worked fewer hours on WFH days, they made up the time on office days and weekends, maintaining overall productivity.
"Often new policies turn out to be unexpectedly profitable. Trip.com made millions of dollars more profits from hybrid by cutting expensive turnover," Bloom noted.
As firms like Amazon push for full in-office returns, Trip.com’s findings make a compelling case for hybrid work. By aligning flexibility with structured performance reviews and clear scheduling, companies can foster higher satisfaction and lower attrition—key outcomes that are shaping the future of workplace strategy.
"Companies should consider implementing A/B testing to evaluate different management practices and continuously improve their operations," Bloom added.