Since Marissa Mayer became chief executive of Yahoo, she has been
working hard to get the Internet pioneer off its deathbed and make it an
innovator once again.
She started with free food and new smartphones for every employee,
borrowing from the playbook of Google, her employer until last year. Now,
though, Yahoo has made a surprise move: abolishing its work-at-home
policy and ordering everyone to work in the office.
A memo explaining the policy change, from the company's human resources department, says face-to-face interaction among employees fosters a more collaborative culture — a hallmark of Google's approach to its business.
A memo explaining the policy change, from the company's human resources department, says face-to-face interaction among employees fosters a more collaborative culture — a hallmark of Google's approach to its business.
In trying to get back on track, Yahoo is taking on one of the country's
biggest workplace issues: whether the ability to work from home, and other flexible
arrangements, leads to greater productivity or inhibits innovation and
collaboration. Across the country, companies like Aetna, Booz Allen Hamilton and Zappos.com are confronting these
trade-offs as they compete to attract and retain the best employees.
Bank of America, for example, which had a popular program for
working remotely, decided late last year to require employees in certain roles
to come back to the office.
Employees, especially younger ones, expect to be able to work remotely,
analysts say. And over all the trend is toward greater workplace flexibility.
Still, said John Challenger, chief executive of Challenger Gray &
Christmas, an outplacement
and executive coaching firm, "A lot of
companies are afraid to let their workers work from home some of the time or
all of the time because they're afraid they'll lose control."
Studies show that people who work at home are significantly more
productive but less innovative, said John Sullivan, a professor of management at San Francisco State University who runs a human resource
advisory firm.
"If you want innovation, then you need interaction," he said.
"If you want productivity, then you want people working from home."
Reflecting these tensions, Yahoo's policy change has unleashed a storm
of criticism from advocates for workplace flexibility who say it is a
retrograde approach, particularly for those who care for young children or aging
parents outside of work. Their dismay is heightened by the fact that they hoped
Ms Mayer, who became chief executive at 37 while pregnant with her first child,
would make the business world more hospitable for working parents.
"The irony is that she has broken the glass ceiling, but seems
unwilling for other women to lead
a balanced life in which they care for their
families and still concentrate on developing their skills and career,"
said Ruth Rosen, a professor emerita of women's history at the University of California.
But not only women take advantage of workplace flexibility policies.
According to the Bureau of Labor Statistics, nearly as many men telecommute.
The bureau says 24 percent of employed Americans report working from
home at least some hours each week. And 63 percent of employers said last year
that they allowed employees to work remotely, up from 34 percent in 2005,
according to a study by the Families and Work Institute, a nonprofit group
studying the changing work force.
During the recession, the institute expected employers to demand more
face time, but instead found that 12 percent increased workplace flexibility,
said Ellen Galinsky, its president and co-founder. She attributed this to
companies' desire to reduce real estate costs, carbon footprints and commuting times.
Technologies developed in Silicon Valley, from video chat to instant messaging, have
made it possible for employees across America to work remotely. Yet like Yahoo, many tech companies
believe that working in the same physical space drives innovation.
A Yahoo spokeswoman, Sara Gorman, declined to comment, saying only that
the company did not publicly discuss internal matters.
The company's memo, written by Jackie Reses, director of human resources
at Yahoo, and published on All Things D, a blog on digital issues, said:
"Some of the best decisions and insights come from hallway and cafeteria
discussions, meeting new people and impromptu team meetings. Speed and quality
are often sacrificed when we work from home."
In part, the memo looks like an effort to bring a Google spirit to Yahoo, said Colin Gillis, an analyst at BGC Partners who covers both companies.
In part, the memo looks like an effort to bring a Google spirit to Yahoo, said Colin Gillis, an analyst at BGC Partners who covers both companies.
Photo Credit: Google Images