16 March 2013, 04:16 PM IST
CEO Marissa Mayer is trying to revive the once vibrant Yahoo by making choices in Human Resources policies. She wants to get all hands on deck. And no thank you, virtual hands need not apply for the task. She is getting flamed all over the Net for pulling back on what technology sector has long touted as the major attraction to lure candidates. After looking at empty parking lots in the office, she asked for login records of the company's VPN and discovered that the login rates were low. So clearly work from home was being misused by some to become "shirk from home".
Work from home has been increasing as an acceptable way of working rather than a perk. Research at Penn shows that telecommuting actually boosts productivity, performance, job satisfaction and overall life satisfaction. It positively affects relationships with supervisors and reduces turnover, stress and work-family conflict. A Stanford study found that Chinese call-center employees who worked from home were thirteen per cent more productive.
Is Mayer taking a step back? May not be.
- Working physically together can help improve creativity. Many bright ideas are born when people have animated discussions with colleagues.This is just what Yahoo needs now.
- There is study by MIT that shows that virtual employees may be more productive but are less likely to be promoted. Visibility creates the illusion of value. Virtual employees need to work much harder to get mind share and share of voice.
The uproar is also because it disturbs many people whose job does not need them to interact with others and allows them the opportunity to look after a child, partner or elderly who need looking after. So not all employees will be equally affected by this decision. The lives of some will come to a grinding halt if they cannot work from home. That is the group that she needs to look into and make some tough calls.
Marissa is hoping that this decision will delay the company coming to a grinding halt as well. It is not different from having to announce a paycut or cutback on a privilege or perk. Even a notional cut does not affect everyone equally.
There are always three sides to an argument – my side, your side and the facts. Yahoo is not the first company to cut back on a work arrangement. Bank of America did that too in December 2012 when it clamped down on work from home options that affect thousands of employees.
Companies have used this policy to lure talent. Not only is she withdrawing this carrot, she is now also getting flak for having refused good candidates just because they did not have degrees from prestigious universities - a trick she learnt during her time at Google. Marissa is trying to change the profile of people being hired at Yahoo as a way of changing the culture. So hiring is a good lever to use. I think though she has got it wrong on this one.
Interestingly she has gone on record to state that she will not have the Yahoo employees spend twenty percent of their time chasing their dream projects the way Google techies can. I believe that could be a good way to trigger creativity - something Yahoo needs desperately. When people are overloaded with work and constantly chasing deadlines, they tend to submit everything in its first draft form without refining it further.
My advise to Marissa would be:
- Some individuals need it: Put back the work from home on a selective basis once the company is back on track. Some people (especially introverts) tend to work better by themselves in stretches. They hate the constant interruptions and socializing in the workplace. They work better when they work at home - provided they have the space to work quietly.
- Some roles need it: If their role is that of an individual contributor who does not need inputs from others or does not demand brainstorming with others for ideas, let the individual choose where they wish to work from. People who manage others or in client facing roles may need to be in office to be more effective (and there are exceptions to this).
- Some situations need it: Some situations work better when the employee is not in the office. Some managers allow telecommuting when the employee is recovering from a health situation that may affect others who come into contact.
- Personality and not just grades and labels: So evaluating personality is the greatest predictor of job success. So check for that fit. Go beyond the resume.
- Yahoo needs innovation not just productivity: It is not like people can't check Facebook in the office. Getting people back into the office should boost productivity.Now give them the space and time to be innovative. That twenty percent rule of Google may be just what you need.
What advice would you give to Marissa Mayer? Is she doing the right thing? What is the long term impact of her decision going to be?
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Read the article: Going Beyond The Resume
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