The ban on working from home makes sense for Yahoo: It needs the innovation and speed of delivery that come from office-based employees

Abstract

Purpose – Discusses the suitability of work-from-home policies, especially in information technology companies. Cautions against a one-size-fits-all approach and states that each company needs to make a decision based on how closely this important human resource (HR) policy aligns with organizational strategy.

Design/methodology/approach – Describes how a work-from-home policy, if correctly designed and implemented by HR managers and if aligned to the organizational strategy, can promote innovation and thereby provide a competitive advantage. Gives illustrations from various organizations to explain the concepts.

Findings – Argues that working from home is not useful for all organizations and in all contexts. HR managers can play a key role in identifying the suitability of work-from-home in their organization’s context. The HR policy needs to be flexible and to change based on the need for innovation, the nature of projects and the role of each individual in the organization.

Practical implications – Advances the view that IT organizations which focus on high-impact radical innovations may benefit from having their employees work in an office. However, each organization, depending on the type of innovation it is aiming for and the nature of projects that it is engaged in, should consider whether work-from-home is a suitable option or not. HR managers should play a larger role in aligning the work-from-home policy to the organizational strategy. They should also be involved more closely in decisions related to the implementation of the policy on the ground.

Social implications – Concedes that extra effort will be needed from human resource management (HRM) in customizing work-from-home-related policies to ensure effective alignment with ever-changing organizational strategies.

Originality/value – Considers the context of work-from-home. Provides insights into how HR managers can design the policy, align it to overall strategy and implement these HRM practices on the ground.