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#career #business #workfromhome
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According to study after study, working from home leads to more efficient workers, less staff turnover, higher quality work, it’s cheaper for workers AND it’s cheaper for the business.
Before Covid-19 high tech companies were already experimenting with the advantages of remote work.
A peer reviewed report from an unidentified NASDAQ listed company ran a trial where half of their call center workforce was randomly selected to work from home and the other half would remain in the office. The group given the opportunity to work from home had higher customer satisfaction, took thirteen percent more calls and suffered fifty percent less staff attrition which is a big issue for call centers which typically struggle with high staff turnover. A follow up study done on workers in a wider selection of roles including finance, marketing and software development had similar results. They compared staff working full time from the office with staff working hybrid schedules from home and the office. That study found that hybrid workers were eight percent more efficient at their jobs and had turnover rates thirty five percent lower than staff working in the office full time. If businesses want to get the most out of their workers the results are clear, more work from home is more better… Working from home is also cheaper for the business.
Office space is expensive to rent or buy. Companies that want all their workers in the office will pay more for utilities like electricity, maintenance, security and internet that workers would happily pay for themselves if they were allowed to work from home. It’s rare that companies turn down better results for less money but in this case there are four reasons that more are demanding their staff come back to the office.
The first reason is that a lot of companies are not doing so well right now, interest rates are high, investors are not throwing money around like they were in 2020 and companies need to make cuts. The easiest and largest ongoing expense for most companies are their employees. If a business is getting less work that usual laying off staff is a prudent business decision.
If a business can cut expenses at the same rate as lost revenue then it may be able to maintain profits to keep shareholders happy. If a business is making less revenue then it also means there’s less work to do so it just won’t need as many staff. The problem is that laying off staff signals to the market that the company is struggling which can affect the share price, make it harder to generate new business, and make it harder to hire new staff in the future. Nobody wants to work for a company that lays off a lot of people on a whim and customers don’t want to work with a company that looks like it might go out of business. What companies really need is a way to get rid of staff without formally laying them off… Business leaders have already seen the studies and they know that forcing people to work from the office leads to higher staff turnover which in this case is exactly what they want.
Investment banks like J.P. Morgan and Goldman Sachs which have seen declining revenues from less corporate deal activity are forcing all of their staff to return to the office full time. Their official communications stressed the importance of face to face interactions with clients and co-workers. Senior investment bankers from both firms (who love to talk about how much harder they worked when they were analysts) accidentally said the quiet part out loud when journalists contacted them about their firms decision to bring everybody back. A senior manager at Goldman declared to the Financial times that “Goldman does not want to hire people for whom the most important thing is how many days they have to spend in the office.”
At the moment this plan could backfire for businesses. Unemployment is still low and it’s easy for high performing employees to find a new job so managers using this tactic need to be careful or they will be left with nothing but their worst employees… An easy way to get rid of staff without the bad publicity is just the first reason.
So it’s time to learn How Money Works to find why you are going to be forced back into the office even if it makes no business sense.