Yahoo's CEO either ignited a firestorm or opened a debate on the value of telecommuting. Yahoo informed all their remote workers that they would no longer be allowed to work out of their homes and by June they had to return to their desks at Yahoo's offices. Those who refuse will be asked to resign. Best Buy has now followed suit.
What makes the decision so surprising for some is that Yahoo is led by one of the few female CEOs running a Fortune 500 company and one who just had a baby. Surely she would be more sensitive to the issues facing working women today. But before we declare that the glass ceiling is clearly now impenetrable and predict that this is the beginning of the end for family friendly employment policies, think again.
Allowing employees to work from home still makes good business sense for many organizations. Technology has made it possible for many to work anywhere without the need to take up valuable corporate real estate. While Yahoo believes their remote workers will be more productive in their company offices, allowing greater collaboration and sharing of ideas, independent studies have shown that home based workers work longer hours per week and are much more productive on average than regular workers.
Telecommuting remains a powerful recruitment and retention tool. Employees seeking, maybe even demanding, greater flexibility and work life balance flock to companies that offer this benefit. Most technology firms employ it, allowing them to compete for the best and the brightest employees. It isn't a coincidence that 85 of Fortunes "100 Best Companies to Work For" have telework programs. It is a must to be able to effectively recruit and retain star performers.
While many see this as a benefit demanded by women who balance work and child care issues, studies show more men are actually working remotely. For so long, no one questioned the value of telecommuting.
But before we dismiss Yahoo's decision as another dumb move made by a company struggling to regain its footing, employers and employees need to understand that telecommuting has its drawbacks. Employers' concerns about productivity are real. Some employees need the discipline of a corporate environment and it is tough to be productive with the distractions of a home.
Managers also find it hard to manage remote workers. Fostering a team environment, creating collaboration and simply bouncing ideas around, all essential ingredients for both productivity and innovation, can suffer when employees are not together under the same roof. And finally, telecommuting hurts careers. When employees are not physically present, the "out of sight, out of mind" syndrome sets in, often hurting one's chances to climb the corporate ladder.
Marissa Mayer, CEO of Yahoo, has not killed telecommuting. It still makes sense for many companies. What she did, however, is put the policy on the table for critical discussion.