Do Results-Only Workplaces Really Work?

What is ROWE?

Designed to increase productivity while eliminating the arbitrary constraints of traditional workplaces, a results-only work environment model measures employee performance solely on results delivered. Salaried employees don’t need to work a certain number of hours or even come into an office, so long as they meet their performance metrics. They have complete autonomy over their projects, including how they want to work on them and how much time they dedicate to them.  

Brandon Dawson, co-founder and CEO of Cardone Ventures, is a big believer in ROWE because “time doesn’t scale, but results do.” Dawson told Business.com that “in a ROWE, your top people rise — and your business grows with them. I’ve seen teams become dramatically more productive and more energized because they have clarity, autonomy and direct alignment with outcomes.”

ROWEs fall under the umbrella of flextime policies that many employers have implemented in recent years. These work models eschew the standard “9-to-5” schedule and give workers more freedom in their working hours and, in some cases, the days they work. “The benefit [of ROWE] is obvious,” said JW Roth, CEO of VENU. “People get to do great work on their terms, which builds trust and often leads to better results.”

What are the pros and cons of ROWE?

ROWEs have clear benefits for both employers and employees. However, this work model also comes with potential drawbacks that organizations should consider. When determining whether it’s right for your business, take the time to weigh the pros and cons in relation to your company’s needs.

Pros of the ROWE model

Under ideal conditions, a results-only work environment creates a stronger, more engaged and more productive team. Here are some key advantages for businesses that implement it.

• You build a performance-driven culture. When employees are evaluated solely on what they produce rather than how many hours they’re sitting behind a desk, high performers tend to thrive. “When you shift focus from activity to results, you empower your team to think like owners,” Dawson said. “You attract higher performers … [and] create more momentum faster.”
• Productivity, engagement and attendance improve. Not everyone does their best work during a rigid 9-to-5 schedule or under the watchful eye of a micromanager. ROWEs allow employees to find their own rhythm and processes for producing results, which generally makes them more invested in the outcomes and can boost productivity. ROWE can also lower employee turnover, according to a study in Social Problems.
• It’s well-aligned with desirable hybrid and remote work arrangements. The flexibility offered by a ROWE is a big draw for workers: A 2023 Zoom survey found that nearly 90 percent of global respondents want either a hybrid or flexible schedule or to work fully remotely. Another survey by McKinsey found that 83 percent of employees believe a primary benefit of remote work is “the ability to work more efficiently and productively.”  [Read related article: The Benefits of Highly Motivated Employees]
• It helps small teams stay accountable and scalable. For startups and lean operations that want to scale results without having to invest in a huge team, ROWE makes a lot of sense. Katie Wandtke, vice president of people at Pivot Energy, noted that in smaller companies, staying aligned on goals and maintaining regular conversations about progress is often enough to support accountability — as long as communication remains intentional and consistent.

Cons of the ROWE model

Despite its benefits, ROWE isn’t a good fit for every company. Here are the biggest drawbacks to this model:

• It doesn’t work if leaders value “face time” over results. Leaders who equate in-office visibility and long hours with good performance and work ethic may struggle in a ROWE. “It forces leaders to lead differently,” Roth said. “You can’t measure success by face time or hours anymore — you’ve got to measure by outcomes.”
• Not everyone thrives in full autonomy. In a ROWE, employees can’t hide behind meetings or busywork, Dawson said. “Some people aren’t used to full accountability,” he added. “If you don’t set crystal-clear expectations and coach your team to the outcomes, you’ll create confusion, missed deadlines and frustration.”
• It can be challenging to define and track the right metrics. As Wandtke pointed out, “output does not always equate to outcomes.” ROWE leaders need to carefully define the tasks that have the highest impact and build tracking systems that help teams achieve and measure those goals.
• You have to commit to clarity, communication and accountability. ROWE only works if leaders can define success in concrete, measurable terms and then truly hold people accountable for them. This includes setting timelines, tracking progress and providing regular feedback, which can be particularly challenging if you’re not used to certain tasks, such as managing remote employees. “If leaders aren’t clear on what success looks like, they end up managing chaos instead of scaling performance,” Dawson said. “[ROWE] takes real leadership, not just management.”

What companies use ROWE?

Businesses will find that many top competitors follow a ROWE model despite some drawbacks. These companies believe that making employees have a stake in their success will benefit everyone from top to bottom. Companies that started or changed over to a ROWE model include WATT Global Media, JL Buchanan, World Wide Webhosting and Summit CPA. The most well-known ROWE Fortune 100 company is Best Buy.

Tips for implementing ROWE

Moving to a results-only work environment requires leaders to be intentional about goal-setting, communication and accountability. Here’s how experts recommend setting up your ROWE and managing employee performance.

Set clear, achievable goals 

Every role in a ROWE needs defined outcomes and ways to measure them. Dawson recommended setting measurable, time-bound targets and aligning them with personal and business goals. This creates shared accountability and helps employees see how their individual success contributes to the company’s growth.

Communicate often and effectively

In a ROWE, clarity is essential, and it starts with strong communication habits. “Any [ROWE] organization [should have] documented and accessible goals, transparent and frequent updates and an organizational culture that prioritizes asynchronous communication skills,” Wandtke said.

According to Roth, an important component of this communication is getting aligned and setting your team up for success. “Check-ins shouldn’t be about, ‘What did you do today?’” Roth said. “They should be about, ‘Are we on track and what do you need to succeed?’”

Build the right kind of culture to attract the right people

In many cases, results-only workplaces create happier, more productive employees — and, as research has shown, happy employees are good for business. However, ROWE isn’t right for every organization. The most crucial factor in deciding whether ROWE will work for you is knowing your business and your employees.

ROWE works best when you have a team of self-starters who are motivated by results. If someone needs constant supervision or isn’t interested in personal or professional growth, they’re unlikely to thrive in this model.  “If someone isn’t interested in their own goals and winning, they definitely won’t be interested in the company’s or [their] teammates’ goals,” Dawson warned.

Roth noted that the mindset required to succeed in a ROWE is a shift, and “not everyone’s ready for it.” However, if you’re building the right kind of culture, it can produce great results. “Accountability isn’t about control — it’s about clarity, consistency and trust,” Roth said. “When you build that kind of culture, the scoreboard takes care of itself.”

Sean Peek contributed to the reporting and writing in this article.