The Elite's War on Remote Work Has Nothing to Do with Productivity
Corporate leaders' push for office returns stems from financial struggles in commercial real estate, not productivity. High vacancy rates threaten landlords' loans, impacting local economies and revealing self-serving motives.
Read original articleThe ongoing push by corporate leaders for employees to return to the office is not primarily about productivity, but rather a response to the financial struggles of commercial real estate. Many CEOs and media narratives suggest that remote work leads to laziness, yet studies indicate that remote workers are often just as productive, if not more so. The real issue lies in the significant amount of debt held by corporate landlords, who are facing a crisis due to high vacancy rates in office spaces. With 12 to 20 percent of office space currently unoccupied, these landlords are at risk of defaulting on loans, which could lead to a broader financial crisis. The pandemic has accelerated the shift to remote work, leaving many office buildings empty and their owners scrambling to convert them into other uses. As cities rely on the tax revenue from these properties, the decline in their value poses a threat to local economies. Ultimately, the elite's insistence on returning to the office appears to be a desperate attempt to salvage their investments rather than a genuine concern for employee productivity or well-being.
- The push for office returns is driven by financial pressures on commercial real estate, not productivity concerns.
- Studies show remote workers can be equally or more productive than their in-office counterparts.
- A significant portion of office space remains vacant, leading to potential defaults on loans by landlords.
- The decline in office property values threatens local economies reliant on tax revenue from these buildings.
- The elite's focus on returning to the office reflects a desire to protect their financial interests rather than employee welfare.
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- Many commenters question the motivations behind RTO, suggesting that it may be more about control and management than productivity or real estate interests.
- There is skepticism about the idea of a coordinated effort by "elites" to influence remote work policies, with some arguing that individual corporate decisions are driven by various factors, including employee management and productivity concerns.
- Several commenters highlight the negative impact of RTO on local economies and small businesses, emphasizing the broader repercussions of reduced office occupancy.
- Many believe that remote work can enhance productivity, countering the narrative that in-office work is inherently more effective.
- Some express frustration with the lack of clarity regarding the term "elites" and the motivations attributed to them, calling for a more nuanced understanding of the dynamics at play.
If it were just about real estate, then Amazon would not be calling for 5 days a week return-to-office. I don’t think real estate interests are powerful enough to push Amazon around and I don’t think they’re entrenched enough in Amazon leadership to make it happen. As an alternative contributing factor, I suggest that Amazon wants employee attrition, and five day return-to-office is a convenient tool for that. One of the things that makes return-to-office such a convenient tool for employee attrition is that it’s a deniable tool.
In cities like New York, it’s pretty clear that commercial real estate interests are in bed with the city government. I just don’t think that real estate has enough power to push through a return-to-office agenda at the scale that we’re seeing. Don’t get me wrong, I think commercial real estate interests have a ton of influence. I just don’t think it’s enough influence to explain RTO at this scale (but it can explain RTO policies in some specific cases).
I don’t think the world is so coordinated. Some people made a bad bet on real estate. Some other people want to write click bait pieces about lazy workers. Some other corporate leaders are scared that employees are goofing off outside the office (because productivity can’t be measured for most work).
The truth is that after the initial movement toward remote work, we are starting to see the secondary effects.
For instance, starting as a junior in a remote job can be really daunting, and you're sure to never make any personal connection with anyone. Being stonewalled by a non-cooperative senior coworker in a slack chat while you start your job is a very stressful experience, I can tell you.
Remote also allows some slack if you don't enforce a very tight and intrusive management. See the countless stories about people holding two jobs at the same time.
Covid was an outlier event, and the outcomes that occurred as a result of it will revert to the mean over time.
Now, all of a sudden, they realize their blunder. While the workers are happy, they are not. So now they will try to convince us that we are not productive enough, or that some of us are slacking, or that we have stopped innovating, or another 50 reasons for which going to the office will help us.
More recently, they have realized that they are not fooling anyone. So now they are threatening lower pay or layoffs for those who refuse to come back.
The reasoning behind the work from office mandate does not concern me; nor I will attempt to rationalize it.
I will not return to office, and I will organize with colleagues to make sure our interests are protected.
See you in the strike.
Yes, some people made a bet on office real estate, and they're in a bad position right now.
But those aren't the same people who are running businesses that use those offices. Why would most businesses care if real estate is propped up or not? How would increasing utilization of their buildings actually help them?
I don’t have an answer to that question but I am curious as to why my company and multiple companies my friends work at, are having events where they direct us to command our entire team to come into the office and then tell us the next day that there aren’t enough seats and some people should be told to stay home.
It seems like a lot of companies want to eat their cake and have it too. I mean that in the sense that they want all their employees in the office but don’t want to pay for enough office space to make that possible.
Hell, even the “golden path” schedule for my team or any other in the company doesn’t have set desks. Where we sit in office changes depending on the day because we have the seating capacity for 75% of the employees mandated to be in office, and hr is doing their best at accommodating this. I don’t think as many real estate firms would be looking at their offices sitting unused if corporations actually put their money where their mouth is when it comes to the return to office push
I'm not on the spectrum (at least I've never been diagnosed, but many software developers have autistic tendencies, so who knows), but I also need a quiet place where I can focus. Funnily enough, many people who prefer working from the office also want all others to see how hard they are working, so they sit in the biggest open plan office and do calls all day long. Which is kind of at odds with other people's need to focus...
My Spidey senses go off whenever someone uses an undefined label to describe a sweeping societal change.
And, yes, it is all about real estate.
Everyone in the surrounding area finds it desperately hard to make ends meet.
The restaurants and cafes, the minimarts, the cleaners, janitors, security, various stores: clothing, bookshops, bakeries etc.
All these people lose their jobs and for the small independent Stores where the owners have poured in their savings they lose all that,
There are a lot of positives with working from home but dont forget about the wider repercussions,
So either
a) The company that is ordering workers back to office owns the property - then they get absolutely no financial gains from it, because they need to pay for the office space in any case.
or
b) They rent the office. In this case, they get financial gains from renting less space and keeping workers at home.
In their last earnings call, their AWS operating income increased $4billion to $9.3 billion, they said it's driven by "our continued focus on cost control, including a measured pace of hiring."
That is a dramatic jump in returns, they will squeeze that until the gains from doing so are minimal, implying that specific cost base is then efficient.
Case example: The weird YouTube parents who likely never spent time with other parents and got into child abuse scandals.
It drives a large piece of demand for the auto industry and causes literally and figuratively tons of fuel to be consumed, just to take some obvious examples, but there are many many many more when you consider the chain reactions.
Fuel is heavily taxed in most countries as well, so reducing the demand is a major hit to the core economy of many nations. This is a problem for everyone, not just the 1%. It might actually be a smaller problem for them than for most.
This is not a conspiracy so much as it is a real problem that might cause problems for all of society unless its handled well.
I think we need to elevate the discussion from the tiresome "It's all $category's fault because they're evil" to stand any chance. In this case as in so many others.
This person thinks that multibillion dollar companies would be willing to sacrifice productivity to prop up the minor real estate assets they hold at the expense of their revenue and market cap?
Also, as a self-preferred hybrid, I often go to office 3-4 days weekly and I see more goofing off and also get pulled into goofing off by peer pressure(c'mon, lets have a cup of coffee, you such work-a-holic, there is tomorrow blah blah), because people will definitely take a 30-60mt coffee break after each meeting, compounding to around ~1.5-2h (if we do not consider meetings as work) effective productivity.
Lets take lunch break at office, first grouping with peers starts 15-20mt before everyone is ready and heading out to canteen or restaurant depending on the mood and then taking a long walk afterwards because everyone is sleepy after meal. Coming back, some will still feel sleepy and spend another 30mt on coffee sipping and gossips and then walk to a meeting.
Compared to my work at home, I get decent min. 4h concentrated work. Additionally, I can focus on other stuff(debugging, reviews, experiments) in background without coming off as rude, while a meeting takes place that does not directly need my input immediately. Same meeting at office means I am either super bored and sleepy and others are mostly scrolling their FB/TikTok under the table while some random people get into nerdy arguments with another someone who suggested a bad design or a manager gets at the neck of another team's manager because they can't align on the coordination or responsibility distribution correctly.
One benefit of in-person office days is, when I have a problem, I can walk up to my peer and get a clarification immeidately, while at home, they might set their status to do-not-disturb or would cite some other meetings where they are just sitting around listening to blah blah and tell me to come back later. Other than that, I do not see any immense benefits. The bonding/cultural stuff are anyways enforced by corporate team events and parties and what not and in EU, people do not often socialize personally with colleages outside work unless they were childhood friends or live in same house.
If anything, those companies could sublet and/or negotiate the cost, lowering the downside, instead of doing something they know (according to the article) won't move the needle.
The math doesn't add up.
No. It's about total loss of the control of the one of the most effective productivity measurements those 'elites' ever had: BiC/h.
Zombie towers too, but the middle management don't (and won't ever) get any profit from the sqaure meters, so they eagerly support their top-level executives specifically because they no longer can imitate the vigorous activity of managing people and projects and with WFH it's became way too obvious. They literally don't know what they subordinates do.
PS: Butt-in-Chair, of course.
I’m a manager that prefers an in-person team. My reasons are related to productivity. Any commercial real estate that happens to be in my portfolio is separated from me by enough intermediate aggregators that I don’t spend an iota thinking about it. I actually work for an organisation whose senior leadership prefer remote work, so I’m not just a kiss-ass or anything. What does OP’s POV say about me? Do I not exist? Am I a paid shill?
Honestly, and I say this as one, developers can be so bloody petulant.
It can still work well with a certain type of people, people who are self directed and take pride in their work, but let's not fool ourselves into believing that's the only kind.
I add a thing: giants NEED the city to keep their business, who use Uber in a spread area where parking is never an issue and we all have cars? Who use JustEat where there are few restaurants around? Who buy ready-made food if most WFH? Who buy shiny macrobugs also known as smartphones, smartwatches etc where we WFH and outside there is nature, not a big city? Who will implement the "in 2030 you'll own nothing", meaning that those who say that count to own anything and rent to anyone?
That's more then mere real estate, the neofeudal economy of few big and powerful will fail to a new dynamic economy of SMEs and a free market. And yes those who are so big do not want to loose their status.
The problem with the first point is that why would a certain elite support their commercial real estate elites. This would suggest a certain transaction that the real-estate elite are not able to uphold since all of their income is coming from the companies.
For the second point, it'll be much easier to point at the conflict of interest in corporations.
The problem with these evil capitalist conspiracy theories is evidence: there should be evidence of this motivation _somewhere_. If you're a captain of industry, your compensation is driven by equity, which is in turn driven by shareholders' forecast of future earnings. So CEOs should be shouting their evil plans from the rooftops --anything you do but don't tell shareholders about might as well not have happened! Yet it doesn't come up in earnings calls, shareholder reports or at industry analyst reports. Probably because commercial real estate has no bearing on most company's valuations, and the ones it does impact are usually lightly staffed anyways, or couldn't really work from home in the first place.
I don't think the "us" vs "elites" framing helps the analysis at all, as it's far too reductive and treats actors as monoliths. Instead it's probably better to use something like "us" versus "small businesses, politicians, tech CEOs, bankers, and real estate investors." (And maybe even split up "us": not every job can work from home!) Tech CEOs generally have no exposure to commercial real estate. But bankers do, and real estate investors definitely do. These firms tend to be local in scope, and more directly connected to local politicians.
In that network of actors, tech companies are the mark. Politicians come after them with taxes and rules while carving out small business exemptions without which they would otherwise be voted out. And unlike the 'Jeff Bezos is worried about the long term viability of REITs' theory, this one has evidence, from politicians telling us their plans[1][2]. They campaign on these in-all-but-name writ-of-attainder taxes. How any individual tech company reacts can vary.
So that's the causal path between commercial RE and tech as I see it and it doesn't look like a strong one. Maybe it's more prevalent in the east coast where the banking and legal sectors are more represented, but here on the west coast only one company is fully 5 days in office They are widely reputed to have the highest employee churn target among big tech, and WFH lowered churn across the board.
[1]: https://www.sanjoseinside.com/opinion/op-ed-cupertino-city-c... [2]: https://www.nytimes.com/2018/07/31/technology/san-francisco-...
Real.
Then the market decide.
Related
The workers have spoken: They're staying home
Employees increasingly favor remote work over office return, exemplified by Dell's failed initiative. Benefits include no commute, work-life balance, cost savings, and flexibility. Companies prioritizing control risk losing talent. Office vacancies rise, signaling a remote work trend.
Tech CEOs are backtrack on RTO mandates–now, 3% want workers in office full-time
Recent research shows a decline in tech firms requiring full-time office work, with only 3% enforcing such mandates. Most companies now offer flexible work options, reflecting a broader trend among CEOs.
Get ready for nasty layoffs and say goodbye to the 4-day workweek
Economic uncertainty in the U.S. is causing fears of layoffs and a return to traditional work models, which may harm productivity and employee morale, according to experts and analysts.
Employers used return-to-office to make workers quit
Employers' return-to-office mandates aimed at inducing turnover have led to higher attrition, particularly among women and underrepresented groups, impacting productivity. Flexible work models are recommended to enhance inclusivity.
Prof who coined term presenteeism: employers who force staff back are dinosaurs
Sir Cary Cooper criticizes strict return-to-office policies, advocating for flexible work arrangements that enhance job satisfaction and productivity. The UK government is considering reforms to promote workplace flexibility.