Researchers: Work from home is key to business continuity

The risk of natural disasters, such as Hurricane Milton, is making remote work capabilities a necessary part of business continuity planning.

Even as some companies push back on remote and hybrid work, research suggests that IT-enabled work-from-home (WFH) readiness can provide business continuity advantages during a crisis.

A study examining the COVID-19 pandemic found that companies with higher pre-pandemic WFH readiness performed significantly better than their less prepared competitors, particularly in nonessential industries. The study, "Digital Resilience: How Work-from-Home Readiness Affects Firm Performance," specifically noted that WFH-ready companies performed better in sales and net income.

The co-researchers, including Sebastian Steffen from Boston College, Wang Jin from MIT and Erik Brynjolfsson from Stanford University, analyzed more than 200 million U.S. job postings to construct a WFH readiness index for companies before the pandemic. They found that remote work capability improves business continuity.

Here, Steffen, an assistant professor in the business analytics department at the Carroll School of Management at Boston College; Jin, a digital fellow at MIT's Initiative on the Digital Economy; and Brynjolfsson, an economist and professor at Stanford, offer detailed insights about how HR managers can prepare for potential disruptions and why work-from-home readiness should be part of their plan.

What specific advice would you give to companies in hurricane-prone areas such as Florida as they prepare for potential disruptions from these storms?

For companies in hurricane-prone areas like Florida, there are several key steps to consider to enhance resilience and minimize the impact of natural disasters.

Assess remote work feasibility by role, industry and worker composition. Companies should evaluate which roles are most suitable for remote work and invest in the necessary infrastructure, such as cloud-based systems and secure collaboration tools, to support those roles. Service-based companies, for example, might benefit significantly from remote work, while manufacturing might require robust on-site recovery and coordination tools for supply chain management.

Tailor hybrid work models. Develop flexible work arrangements that balance on-site needs with remote capabilities. This could involve rotating office attendance based on weather conditions or allowing employees to work remotely during hurricane warnings. A hybrid model allows businesses to maintain essential operations while reducing risks to employees during emergencies and helps to train the workforce to be ready in case of disaster events.

Prioritize employee safety and morale. Companies should prioritize employee welfare by offering remote work options during storms, providing emergency communication systems and offering mental health resources. Creating a work culture that prioritizes flexibility and safety will improve employee morale and retention, even in challenging times.

Weigh infrastructure costs, disaster risks and productivity gains. Companies should carefully evaluate the costs of investing in infrastructure to support remote work, weighing these expenses against the likelihood of natural disasters and potential productivity gains. While the upfront costs of implementing secure digital systems and cloud services can be significant, they often offer long-term benefits by enhancing resilience and ensuring business continuity during disruptions.

By following these strategies, businesses in disaster-prone regions can protect their operations and employees, ensuring continuity even during severe natural disasters. The option value that remote work practices afford companies will only increase as such events become more common.

Patrick Thibodeau is an editor at large for TechTarget Editorial who covers HCM and ERP technologies. He's worked for more than two decades as an enterprise IT reporter.