Throughout 2022, as COVID-19 restrictions ease around the world, businesses have been grappling with a labor market forever changed by the rise of remote work. As the new year begins, some employers have been outspoken about their insistence that they will be able to bring workers back to the office. But Raj Choudhury, an economist at Harvard Business School, argues that there is evidence that it is too late to bring workers back to the office. Employers who do not adapt quickly will be left behind, he warned.
He said in an interview with “Wired” magazine (Wired) on December 29, 2022: “There are two types of companies today: one is to accept employees to work from anywhere, and the other is to escape reality. Companies will lose employees.” Why? Just think about what the best talent in the market actually wants.
Chowdhury believes that it is not employers who shape industries, but top talent; if companies want to attract these talents, they need to provide flexibility. According to the economist’s own research, the best workers want the freedom to work from anywhere so they can be more productive.
Chowdhury warned that in the current labor market, companies that try to “return to the past” by asking employees to return to the office will see their best employees leave.
Still, in an October 2022 survey of CEOs conducted jointly by Fortune and Deloitte, nearly half of U.S. chief executives said they wanted employees to return to the office. CEOs are concerned that telecommuting employees may be less productive and less engaged.
But in the same survey, 71% of CEOs also noted that there is still a talent shortage. Choudhury’s comments are another sign that employees may be gaining the upper hand in the ongoing battle between executives and employees over the “employees can work from anywhere” policy.
Some companies, such as Goldman Sachs, have been quick to bring employees back to the office in 2022. Goldman Sachs CEO David Solomon said in October 2022 that he believed returning to the office would help preserve the firm’s “cultural foundation” and “bring people together.”
Tesla CEO Elon Musk has even argued that remote workers are just pretending to be working while asking his employees to return to the office. When the billionaire took over Twitter in early 2022, he reversed one of the most high-profile policies during the new crown epidemic that “employees can work from anywhere forever.”
But back-to-the-office policies have been poorly enforced, with many workers ignoring and even resisting them. Musk was eventually forced to soften his tough stance against remote work at Twitter, saying that as long as remote workers do a “great job,” they don’t have to return to the office.
Choudhury and other experts like him see this as proof that remote work is here to stay.
Recent research suggests that CEO concerns about remote workers may be overblown. Future Forum’s quarterly employee satisfaction survey of 10,000 white-collar workers in October 2022 showed that employees with “full flextime” scored 29% more productively than those with no flextime . A recent Harvard Business Review study found that remote workers are actually busier than their counterparts.
Remote work isn’t a solution for every employer, but some experts believe sensational headlines about remote workers hiding second jobs or slacking off have led business leaders to worry about an inevitable shift in how the labor market works .
Still, some CEOs are willing to adapt to the shift. According to a survey by consulting firm Ernst & Young (EY) in November 2022, about 90% of technology company CEOs said they will maintain remote work policies because it can maintain work efficiency and save office space expenses.
“Remote work and flexible work are now seen as cost-saving opportunities,” the report said. (Fortune Chinese Network)
Translator: Zhong Huiyan-Wang Fang
Throughout 2022, with pandemic restrictions easing globally, businesses have grappled with a labor market that has been forever changed by the rise of remote work. Heading into the new year, some bosses were vocal in insisting that they could bring their employees back to the office But Raj Choudhury, an economist from Harvard Business School, sees evidence that it’s already too late for that and warns that employers that don’t adapt quickly will be left behind.
“There are two kinds of companies: One is going to embrace work-from-anywhere, and the second is in denial—I feel those companies will lose their workforce,” he told Wired on December 29, 2022. The reason why? Just Consider what the best talent on the market actually wants.
Choudhury believes that it’s not bosses who shape industries, but top talent; and if companies want to lure that talent, they need to offer flexibility. The best workers want freedom to work from anywhere, and they’re more productive when they do so, According to the economist’s own research.
Choudhury warned that firms that try to “drag back time” from employees in the current labor market with return-to–office mandates will see their best workers leave.
Still, almost half of American CEOs said they want their workers to return to the office in an October CEO survey conducted by Fortune in collaboration with Deloitte. CEOs fear that remote workers may be less productive and less engaged.
But in the same survey, 71% of CEOs also noted there’s an ongoing talent shortage. And Choudhury’s comments are another sign that workers may be gaining the upper hand in the ongoing battle between executives and workers surrounding work from anywhere policies.
Some companies, like Goldman Sachs, were quick to call employees back into the office this year. Goldman’s CEO David Solomon said in October that he believes in-office work helps to retain the company’s “cultural foundation” and “bring people together.”
And Tesla CEO Elon Musk has even argued that remote workers are just pretending to work, while demanding his employees return to the office. When he took over Twitter earlier this year, the billionaire reversed one of the most dramatic “work from anywhere, forever” policies of the pandemic.
But the execution of return to office policies has been less-than-stellar, with many workers ignoring or even fighting against them. Musk was eventually forced to soften his hard-line stance against remote work at Twitter, saying that as long as remote workers were doing “excellent work” they didn’t have to return to the office.
Choudhury, and other experts like him, believe this is evidence that remote work is here to stay.
And recent studies have shown that CEOs’ concerns about remote workers may be overblown. In the Future Forum’s October quarterly Pulse survey of 10,000 white-collar workers, employees with “full schedule flexibility” had productivity scores that were with 29% higher flexibility. And a recent Harvard Business Review study found that remote workers are actually more engaged than their peers.
Remote work isn’t a solution for every employer, but some experts argue that sensationalist headlines about remote workers having hidden second jobs or slacking off have led business leaders to fear an inevitable transition in the way the labor market functions.
Some CEOs are willing to adapt, however. Roughly 90% of tech CEOs said they will keep remote work policies in place because they can maintain productivity and save money on office space, according to a November survey from the consulting firm EY.
“Remote and flexible work are now seen as cost-savings opportunities,” the report said.
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