Covid-era impacts are still being felt across the corporate world, especially concerning remote work and how to phase out the work-from-home surge that occurred alongside the pandemic. Many companies like Facebook and JP Morgan Chase hired remote workers in droves during Covid, both to offer more flexible work schedules and fill the gaps in employment from retirees. This mutually beneficial agreement seems to have run its course however, with large tech companies starting to usher workers away from home and back to offices. Abandoned office spaces are costing companies big time and many in upper management have cited lower employee productivity as the reasons for such a large push for a return to office (RTO).
Workers generally love the flexibility of the remote work schedule, and as such, they are firmly opposed to many of the corporate pushes for RTO. Vocal employees explain the remote work saves everyone involved time and money, but the numbers just keep dwindling. Throughout 2021, surveys showed that upwards of 37% of households were employed through remote work at least one day a week – a number that dropped down to 26% this year. Statements from Facebook and JP Morgan Chase have made it abundantly clear that employees will be expected to return to physical office jobs promptly or face varying consequences, like poor performance reviews or dismissal from the company. Many large banks are pushing the hardest for RTO, as they have invested heavily in commercial real estate. Over the last couple of years, many of these properties have taken huge hits in value because of increasing vacancy rates. Simply put – empty buildings aren’t worth as much, and this bottom line has pushed many of these companies past the point of compromising with their employees’ work schedules.
Such is the uphill battle for any remote workers hoping to stay remote in the post-Covid workforce. Many companies have a vested interest in the valuation of their real estate and the collaboration of their employees – both of which seem to drop in a virtual workspace. While certain industries undoubtedly benefit from remote work environments, for much of the corporate sector this is apparently not the case. JP Morgan CEO Jamie Dimon summarized his company’s view on the matter quite succinctly, saying “I completely understand why someone doesn’t want to commute an hour and a half every day. Totally get it… Doesn’t mean they have to have a job here either”.
See you on the trail,
Lisa
LMA Newsletter of 10-23-23
