Work from Home and Productivity: Evidence from Personnel and Analytics Data on Information Technology Professionals

Abstract

We study employee productivity before and during the working-from-home period of the COVID-19 pandemic, using personnel and analytics data from over 10,000 skilled professionals at an Indian technology company. Hours worked increased, output declined slightly, and productivity fell 8%–19%. We then analyze determinants of productivity changes. An important source is higher communication costs. Time spent on coordination activities and meetings increased, while uninterrupted work hours shrank considerably. Employees networked with fewer individuals and business units inside and outside the firm and had fewer one-to-one meetings with supervisors. The findings suggest key issues for firms in implementing remote work.