The French game ‘the decision of the flower’, where with every petal we pluck, we ponder whether ‘they love me or they love me not’, has got an upgrade and it goes like ‘is remote work better or is it not’. A debate that has permanently parked itself in the public discourse and is lasting longer than the pandemic itself. One that we are tired of hearing.
Varying opinions either champion the idea of remote work, are adamant about opting for physical work entirely or are on the fence about it so they vote for hybrid working. Either way, the debate has dragged on for too long with different parties putting forth different reasons. Some of us were convinced that working from home is here to stay (including myself). But things have shifted shape and whispers inform us that the age of remote work may be wrapping up its stay.
Remote work is being pushed off of the table
Starbucks, General Motors, Disney, Walmart, Dell, Amazon, Activision Blizzard, United Parcel Service, Meta, Grindr, IBM, Ubisoft: A (long) list of companies that have called it quits on remote work, are allowing hybrid work (with a strict agenda), and have prioritised in-office work. While these are big guns in the industry, there are probably plenty of other companies that have binned the concept of remote work.
In the US, the availability of fully remote work is plummeting by large numbers. According to recent research conducted by Indeed, job postings are decreasing faster in metropolitan areas where remote work is feasible. While it is not entirely based on geography, the fact that the drop is prominent in metropolitan areas is concerning because they traditionally had a high proportion of jobs that could be done remotely. While national job postings were down 16% year-over-year in August, many high-remote-eligible metros experienced a more pronounced decline, with postings dropping over 40%. These areas, having already lost in-person service roles during the pandemic, are now also seeing a reduction in remote-friendly job opportunities as sectors like technology and sales are pulling the plug on hiring. As mentioned in CNBC, Kory Kantenga, a senior economist at LinkedIn, noted concerns about productivity as a driving force behind the resistance to remote work. A handful of experimental studies have suggested potential productivity impacts associated with remote work. However, there is uncertainty about how these findings apply to the broader labour force.
Productivity seems to be at the core of this latest development. While pitting remote work against in-office work is not the goal, many believe that individuals tend to be more productive when collaboration is easier; an element that does not come easily for remote workers. The transition to hybrid and remote work does have a positive impact on workers, their families, staff morale, and the environment. However, it can pose challenges to efficient collaboration, especially if telecommuters are perceived as less productive than in-office employees. Forbes states that as per findings, the effectiveness of remote work lies in the implementation of a supportive ecosystem by managers, acknowledging the flexible nature of today’s work reality.
What is the reason behind the change?
Robin, a workplace strategy firm, recently conducted a survey which revealed that there is a growing trend among companies that coerce employees to return to the office. The survey which involved more than 500 business owners and facilities managers in various industries exposed that 88% of companies surveyed now mandate their employees to work in the office for a specific number of days. This is indicative of a notable rise of nearly 20% compared to a similar survey conducted in 2022. This transition could be attributed to concerns businesses have about the potential negative effects associated with remote work.
Business leaders express a desire for employees to spend time in the office due to reasons like in-person collaboration, cross-functional communication, professional development, and fostering a sense of belonging. The survey from Robin also demonstrates that among companies mandating in-office work, 52% require employees to come in four days a week, reflecting a 32% increase since 2022. Despite this push for in-office work, only 28% of these businesses are using 100% of their office space, which is telling of how many offices have downsized since the onset of the pandemic. As mentioned in the Business Insider, the cost of maintaining office space is a consideration, with over 60% of surveyed companies (by Robin) paying more than $50 per square foot for office spaces.
The process of remote work management is more demanding than one assumes it to be. For instance, smaller businesses are now grappling with the challenges which were traditionally faced by multinational corporations. Distributed teams scattered across different locations and even countries can lead to asynchronous workdays and delays in collaboration. Managers are tasked with building a supportive framework for distributed teams, focusing more on streamlining collaboration, maximising productivity, fostering culture, identifying risks, and taking prompt action when necessary. Achieving this goal involves implementing flexible policies, improving communication, and putting in place an effective monitoring process without swaying away from staff autonomy and connectedness.
Patently, all the signs point to one thing in tandem and that is most companies (who can afford the expenses) are more than willing to revert to in-office working patterns. However, this is not without its repercussions where employees are loud-quitting or voicing their disdain with regard to such a decision (one that was mostly taken without consulting the parties at the receiving end). However, there is also a considerable number of employees who enjoy going back to work on a full-time basis. Surprisingly, Gen Z employees find value in the office environment and voluntarily go to the office beyond the required days to combat feelings of loneliness at work. To encourage in-office attendance, companies are exploring various incentives such as financial rewards or free lunches. What seems evident from all the talk around this debate is that companies are not going to back down from giving it their best shot to get all (or at least most) of their employees to return to the cubicle. And the only compromise they are willing to make is putting their money on the hybrid work model and nothing more than that.
(Sandunlekha Ekanayake)