Remote and hybrid working may be great for employees' work-life balance, but it may be stifling innovation, according to new research.

The study, led by University of Essex and University of Chicago economists, found that staff who worked in a hybrid model were less likely to come up with innovative ideas than colleagues who always worked in the office. And staff working from home tended to produce lower quality innovative ideas than those who always worked in the office.

"Innovation in the workplace can occur through random, spontaneous 'watercooler' conversations between employees," explained lead researcher Dr. Christoph Siemroth. "However, these 'productive accidents' are less likely to occur when employees work from home. Our research has found that innovation is suffering as a result."

Post-pandemic, many firms are hesitant to implement a full-time return to working from the office and have adopted a hybrid model, where employees get the best of both worlds, spending some days in the office and some at home.

Many business leaders have voiced concerns over innovation suffering with these new work modes. This new research, published in the journal Scientific Reports, finds their concerns could be valid.

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