Impact of Work-from-Home Policies on Employee Productivity in MSMEs

The COVID-19 pandemic catalyzed a global shift in work culture, compelling businesses—including Micro, Small, and Medium Enterprises (MSMEs)—to adopt Work-from-Home (WFH) policies. While WFH has become a key component of flexible working arrangements in many large organizations, its impact on productivity within MSMEs remains underexplored. This paper investigates the implications of WFH policies on employee productivity in MSMEs, focusing on emerging markets. Drawing insights from empirical studies and recent literature, the paper examines the mediating role of HRM practices, generational preferences, managerial support, and digital infrastructure in shaping WFH outcomes. Findings suggest that effective telecommuting practices, aligned with employee needs and organizational support, can enhance employee well-being and productivity. However, challenges such as limited ICT adoption, varying levels of digital literacy, and infrastructural constraints hinder optimal outcomes, especially in rural or resource-constrained settings. The study contributes to the growing discourse on sustainable workforce models in MSMEs by offering policy recommendations and identifying future research directions.