A new study by researchers at King’s College London suggests that remote work has the potential to significantly boost productivity and bring underrepresented groups into the workforce. It found productivity increased by 10.5 per cent after the switch to remote work.
Co-authored by Dr Cevat Giray Aksoy of King’s College London, the study examined the long-term impacts of flexible work arrangements through a case study of Tempo BPO, a multinational business process outsourcing firm with 3,500 employees.
The firm transitioned to fully remote work during the COVID-19 pandemic and has maintained this model since. The study found that, following this transition, productivity increased by 10.5 per cent, driven largely by shorter call durations as employees benefited from quieter home environments. Service quality also improved with shorter calls and hold times.
Remote work also transformed the firm’s workforce composition. The share of female employees rose from 50 per cent to 76 per cent, with significant increases in married women and workers from rural areas, groups traditionally underrepresented in Turkey’s labour market where Tempo is based. Additionally, the firm attracted more educated and experienced employees without raising wages, as remote work expanded its talent pool.
The study also showed that employees who began with in-person training before switching to remote work showed higher long-term productivity and lower attrition rates than those who started remotely. The finding suggests that initial face-to-face induction processes foster stronger workplace connections and better performance.
“This case is a striking example of how remote work can be a win-win for firms and workers, even in low-wage service-sector settings,” said Dr Aksoy, lead economist at the European Bank for Reconstruction and Development who co-authored the study with Nicholas Bloom and Steven J. Davis
(Stanford University), Victoria Marino (European Bank for Reconstruction
and Development), and Cem Ozguzel (Paris School of Economics). “It broadened the hiring pool, improved productivity, and did so without raising costs.”
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