Productivity Paradox and Telecommuting

This post is an adaptation of one I originally wrote on my personal finance and investing blog, Richer by the Day.  Telecommuters are even more likely to face the productivity paradox than office workers, but have some different tools to deal with it.

When you work for a company, you’re likely to encounter the productivity paradox, which can be summarized as follows: The more work you do, the more work you get. Being more productive, while beneficial to your company, is likely less beneficial to you. Ask most bosses if you can work fewer hours as long as you get your work done and the answer will probably be the same: if you can get all of your work done in fewer hours, think of all the extra work you can get done if you put in the full amount of time. The trouble with many jobs is that there is not a direct correlation between the effort you put in and the pay that you get out. Working twice as hard won’t get you twice the money and may just serve to raise expectations or wear you out.

As a telecommuter you will likely see gains in your productivity.  That begs the question of how you’ll manage the productivity paradox.  Will you burst through your work in less time and use the excess for your own pursuits?  Will you raise your output beyond what an office worker could hope to accomplish to become the most valued employee?  Or will you squander your productivity gains to keep up the appearance of your pre-telecommuting level of productivity?  Depending on your work situation, only some of these options are possible.  If you are required to work a set number of hours per week, for example, getting your work done in less time doesn’t help you if you are chained to your desk until the work day is done.

In my original discussion on the productivity paradox I suggested that after you meet the requirements of your job, extra time is best spent elsewhere. If you were considering putting in an extra 10 hours a week at work, you likely would be better off using it to build an alternative income source. Whether you start a business, take on freelance work, or even just spend more time researching investments, activities that more closely correlate your compensation with your added effort may be the way to go.

Telecommuters whose jobs are task-based, rather than time-based, are most able to avoid the productivity paradox.  For them, the added productivity of telecommuting will allow tasks to be completed more efficiently and quickly, freeing up even more time for persuits that directly correlate their efforts with their earnings.  Time-based telecommuters are even harder hit by the productivity paradox than office workers.  Without proper monitoring of how productivity gains are exploited, such workers may quickly burn out or take actions that jeopordize the continued management support necessary to remain a telecommuter.

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