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When everyone works remotely, communication and collaboration suffer – study

Working from home causes workers to become more siloed in how they communicate, engage in fewer real-time conversations, and spend fewer hours in meetings.

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As companies debate the impact of large-scale remote work, a new study of over 61,000 Microsoft employees found that working from home causes workers to become more siloed in how they communicate, engage in fewer real-time conversations, and spend fewer hours in meetings.

The study, published in the journal Nature Human Behaviour and co-authored by Berkeley Haas Asst. Prof. David Holtz, made use of data from before and after Microsoft imposed a company-wide work-from-home mandate in response to the COVID-19 pandemic. The findings suggest that a full-time remote workforce may have a harder time acquiring and sharing new information—which could have implications for productivity and innovation among information workers down the road.

“Measuring the causal effects of remote work has historically been difficult, because only certain types of workers were allowed to work away from the office. That changed during the pandemic, when almost everyone who could work from home was required to do so,” said Holtz, who conducted the research as an MIT Sloan doctoral intern at Microsoft, and co-wrote the paper with Microsoft colleagues Longqi Yang, Sonia Jaffe, Siddharth Suri, and seven others. “The work-from-home mandate created a unique opportunity to identify the effects of company-wide remote work on how information workers communicate and collaborate.” 

The analysis was based on anonymized data describing the emails, instant messages, calls, meetings, and working hours—all stripped of their content and identifying information—of the overwhelming majority of Microsoft’s U.S. employees. 

Holtz, a faculty affiliate at the Berkeley Institute for Data Science and research affiliate at the MIT Initiative on the Digital Economy, said that while the pandemic offered a rare opportunity to study the impact of firm-wide remote work, significant effort was required to understand the extent to which changes in behavior were caused by remote work in particular rather than the upheaval of the pandemic itself. After all, workers suddenly found themselves navigating shelter-in-place orders and supply shortages, caring for children home from school or vulnerable relatives, and coping with general stress and anxiety.

Microsoft, where 18% of employees were working remotely before the company issued its work-from-home mandate, offered the opportunity for comparison. The authors separated out the effects of remote work from other effects of the pandemic by using a statistical technique to compare those Microsoft employees who were already working from home with those who abruptly shifted online during the pandemic.

The researchers had access to anonymized data on employees’ roles, managerial status, business group, length of tenure at the company, and what share of their co-workers were remote prior to the pandemic; they matched groups of workers with similar observable characteristics. They also used aggregated weekly summaries of the amount of time workers spent in scheduled and unscheduled meetings and calls, the number of emails and instant messages they sent, and the length of their workweeks, as well as monthly summaries of workers’ collaboration networks.

Among their key findings:  

  • Company-wide remote work caused workers’ collaboration networks to become less interconnected and more siloed. They communicated less frequently with people in other formal and informal business groups.
  • Remote work caused workers to spend about 25% less of their time collaborating with colleagues across groups, compared to pre-pandemic levels. Remote work also caused workers to add new collaborators more slowly.
  • Conversely, remote work led workers to communicate more frequently with people in their inner network, and to build more connections within that inner network.
  • Remote work caused workers to spend more time using asynchronous forms of communication, such as email and message platforms, and less time having synchronous conversations in person, by phone, or by video conference.
  • Remote work also caused the number of hours people spent in meetings to decrease by about 5%, suggesting that the increase in meetings many experienced during the pandemic was not due to remote work, but due to other pandemic-related factors.  

Holtz said that the team was also able to separate the effects of company-wide remote work into two separate components: how your own collaboration patterns are affected when you work remotely, and how your collaboration patterns are affected when your collaborators are working remotely. They concluded that both are important.

“The fact that your colleagues’ remote work status affects your own work habits has major implications for companies that are considering hybrid or mixed-mode work policies,” he said. For example, having one’s teammates and collaborators in the office at the same time improves communication and information flow for both those in and out of the office. “It’s important to be thoughtful about how these policies are implemented.”

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Office owners or managers, take note: Increased risk of bullying in open-plan offices

In traditional open-plan offices it is easier to notice colleagues’ shortcomings and become irritated by them. If someone gets frustrated and takes it upon themselves to “do something about” a colleague’s behaviour, and there are no clear guidelines for handling such situations, there is a risk that it may escalate into bullying. Those who are subjected to bullying lack access to a private space for retreat. 

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Open-plan offices entail a clearly increased risk of workplace bullying compared with employees having their own office or sharing with just a few colleagues. This is shown in research from Linköping University, Sweden. 

“Increased bullying is a tangible negative consequence of how you choose to organise the workplace. It’s important to highlight this, as it hasn’t previously been examined,” says Michael Rosander, professor at the Division of Psychology at Linköping University.

Open-plan offices, where many employees share the same space, have become increasingly common. Employers often justify this development as a way to use premises more efficiently and to encourage creative interactions between employees. However, research has shown that open-plan offices do not promote health, job satisfaction or productivity.  

Until now, it has been unclear whether open-plan offices also affect the risk of bullying and employees’ motivation to look for another job. Through surveys of more than 3,300 randomly selected individuals in employment in Sweden, Michael Rosander has now provided an answer. The results are published in the journal Occupational Health Science. 

Thirty per cent of those with some form of office-based work reported that they worked in a traditional open-plan office with no access to private space. Thirteen per cent worked in so-called activity-based offices, where employees spend part of their time in an open-plan environment but also have access to designated rooms for tasks requiring peace and quiet. The remainder had their own office or shared one with only a few colleagues.

For traditional open-plan offices, the survey responses showed a clearly increased risk of bullying compared with those who had their own office or shared an office with only a few colleagues. The difference remained regardless of factors such as personality traits and the extent of remote working. This suggests that the problems are indeed caused by the work environment in the office.  

The researchers’ explanation is that in traditional open-plan offices it is easier to notice colleagues’ shortcomings and become irritated by them. If someone gets frustrated and takes it upon themselves to “do something about” a colleague’s behaviour, and there are no clear guidelines for handling such situations, there is a risk that it may escalate into bullying. Those who are subjected to bullying lack access to a private space for retreat. 

Activity-based open-plan offices, by contrast, showed no increased risk of bullying, likely due to the availability of private spaces. However, in both types of open-plan office, employees were more likely to consider changing jobs. One possible explanation is that activity-based offices also involve more distractions, according to Michael Rosander.

For employers who have introduced, or are planning to introduce, open-plan offices, there are some lessons to be learned. One is to be prepared to deal with irritation and conflicts before they escalate. Another is the importance of providing rooms where employees can work undisturbed. Placing individuals with similar needs and tasks near one another may also reduce the risk of disruption.

“Traditional open-plan offices are in themselves negative for the individual, for productivity, and make people more likely to leave their job. Social interaction also suffers. So it’s worth considering how to handle it,” says Michael Rosander.

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Long-serving CEOs may weaken innovation, study finds

Companies led by long-serving chief executives may become less innovative over time unless challenged by strong independent boards.

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A new study from the University of East London has found that companies led by long-serving chief executives may become less innovative over time unless challenged by strong independent boards.

The research examined 215 FTSE 350 companies over an 11-year period between 2010 and 2021. It explored how CEO tenure and independent directors influence a company’s “R&D knowledge stock”, which is the research, expertise and technological capability built through investment in innovation.

The study published in the journal Corporate Governance found that CEOs who remain in office for many years often become more cautious and less willing to back risky research and development projects. These companies were more likely to reduce investment in innovation and long-term technological growth.

Firms with higher numbers of independent directors were more likely to continue building innovation capacity with experienced CEOs and independent directors forming an effective partnership, to combine deep company knowledge with outside challenge.

However, both experienced CEOs and independent directors become more cautious and less willing to back risky research and development projects when the company fails to meet performance aspirations, suggesting that independent directors do not have stable risk preferences.

The findings suggest that innovation is shaped not only by technology and finance, but also by leadership culture and corporate governance structures.

Author Dr Igbekele Sunday Osinubi, of the Royal Docks School of Business and Law, said: “Long-serving CEOs can bring valuable experience and stability, but there is also a risk that leaders become too cautious or too attached to existing ways of thinking. Our findings show that independent directors play an important role in encouraging companies to continue investing in innovation, especially during difficult periods when firms may otherwise retreat from long-term research and development.”

He added: “This matters beyond individual companies. Innovation drives productivity, competitiveness and economic growth. The study highlights how governance structures can influence whether firms continue building the knowledge and technologies that shape future industries.”

The paper argues that regulators and policymakers should consider governance reforms and incentives that encourage long-term innovation strategies, particularly in firms led by long-serving executives. The findings may also influence how boards think about CEO succession planning, oversight and the balance between short-term financial pressures and long-term investment.

Osinubi’s research, “Long CEO tenure, independent directors and R&D knowledge stock: the moderating effect of performance shortfalls”, was published in the Corporate Governance: The International Journal of Business in Society

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Profit alone is a poor measure of success, study shows companies can look efficient while harming the planet

Firms that appear highly efficient at generating revenue can perform far worse when their environmental footprint are included in the calculation.  

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Companies celebrated for strong financial performance may actually be inefficient once their environmental impact is taken into account, according to new research from the University of Surrey. 

The study, published in the European Journal of Operational Research, shows that firms that appear highly efficient at generating revenue can perform far worse when their environmental footprint are included in the calculation.  

To tackle this problem, researchers developed a new way to measure “sustainable corporate efficiency”, combining traditional financial metrics with environmental data such as energy consumption, carbon emissions and revenues generated from environmentally friendly products and services.  

Dr Menelaos Tasiou, co-author of the study and Senior Lecturer in Finance at the University of Surrey, said: “Businesses have long been judged on how efficiently they turn resources into profit. But if those profits come with large environmental costs, the picture changes completely. What we show is that true efficiency means generating revenue while also reducing the environmental damage caused by production. In other words, profitability alone can mask how wasteful a business really is when environmental costs are considered.  

The research analysed more than 2,800 publicly listed companies across 61 countries between 2010 and 2022, creating one of the largest global datasets measuring how sustainable companies are, when both financial performance and environmental impact are assessed together.  

The team combined company financial records, in alignment with the green economy (defined as a low carbon, resource efficient and socially inclusive economy), with environmental disclosures such as energy use and greenhouse gas emissions. They then applied a machine learning technique known as Convexified Efficiency Analysis Trees (CEAT) to estimate how efficiently companies convert resources into revenue while minimising pollution.  

Unlike older approaches, the method models the reality that production creates both desirable outputs, such as revenue, and undesirable ones, such as emissions. This allows companies to be compared on how well they balance profit with environmental performance.  

The results found a moderate link between financial efficiency and environmental efficiency, meaning many firms that are strong financially are not necessarily good at managing their environmental impact.  

The study also found large differences across industries and countries. Firms operating in sectors with high emissions, such as manufacturing and energy, often lagged behind leaders that were better at reducing carbon intensity while maintaining revenue.  

Dr Tasiou continued: “Measuring efficiency in this broader way can help investors, regulators and policymakers identify companies that are genuinely prepared for a low carbon economy. Stronger management capability plays a key role. Firms with more capable management teams were more likely to balance profitability with environmental responsibility, suggesting that leadership decisions can strongly influence sustainable performance.  

“As governments push towards net zero and investors scrutinise environmental performance more closely, companies that fail to integrate sustainability into their operations risk falling behind.” 

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