King's College London

Co-authored by Dr Cevat Giray Aksoy of King’s College London, the study examined the long-term impacts of flexible work arrangements through a case study of Tempo BPO, a multinational business process outsourcing firm with 3,500 employees.

Tempo operates in the call centre industry, a sector in which researchers can measure productivity precisely. The firm transitioned to fully remote work during the COVID-19 pandemic and has maintained this model since. The study found that, following this transition, productivity increased by 10.5 per cent, driven largely by shorter call durations as employees benefited from quieter home environments.

Service quality also improved with shorter calls and hold times, dispelling concerns that remote work might compromise customer interactions.

Remote work also transformed the firm’s workforce composition. The share of female employees rose from 50 per cent to 76 per cent, with significant increases in married women and workers from rural areas, groups traditionally underrepresented in Turkey’s labour market, where Tempo is based.

Additionally, the firm attracted more educated and experienced employees without raising wages, as remote work expanded its talent pool.

However, the study identified one caveat: employees who began with in-person training before switching to remote work showed higher long-term productivity and lower attrition rates than those who started remotely. The finding suggests that initial face-to-face induction processes had fostered stronger workplace connections and better performance.

“This case is a striking example of how remote work can be a win-win for firms and workers, even in low-wage service-sector settings,” said Dr Aksoy, who is also lead economist at the European Bank for Reconstruction and Development. “It broadened the hiring pool, improved productivity, and did so without raising costs.”

Dr Aksoy co-authored the study with Nicholas Bloom and Steven J. Davis (Stanford University), Victoria Marino (European Bank for Reconstruction and Development), and Cem Ozguzel (Paris School of Economics).