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Although the labor shortage has subsided, it remains a concern, with just 4% of CEOs making returning to the office in 2024 a top priority, according to a recent Conference Board survey.
“CEOs are throwing their hands up when it comes to bringing employees back to the office full-time,” Diana Scott, human capital center lead at The Conference Board, told Yahoo Finance. “Hybrid her work is keeping things going, but they have bigger things to worry about. Attracting and retaining talent will be her top priority in 2024.”
The Conference Board surveyed more than 1,200 executives, including 630 CEOs in the United States, Latin America, Japan, and Europe.
As hybrid working arrangements that mix home and office work become the normal routine for many white-collar workers, management is increasingly resigned to a scenario in which employees do not physically come into the office every day. ing.
Remote work continues
After full-time remote work peaked at about 60% during the pandemic, hybrid work is here to stay, with about 30% of paid workdays done remotely.
“Over the past six months, we’ve seen the effects of strict return-to-office policies on both sides of our business,” Gwen Rosener, co-founder of recruitment and staffing firm FlexProfessionals, told Yahoo Finance.
The company has seen a surge in job seekers seeking flexible working options to escape the obligation to return to the office, while corporate clients have been searching hard for months to find employees willing to work in the office full-time. Looking.
“Both sides in the tug-of-war seem to be becoming more compromised, especially on the business side, where strict internal policies are hurting their ability to retain and attract the employees they need to drive growth,” she said. Stated.
Persistent talent shortages continue to hamper hiring efforts, according to the latest ManpowerGroup Employment Outlook Survey. According to the report, a significant proportion of 7 in 10 employers say they are struggling to find people with the skills they need.
‘There’s little evidence’ that remote work hurts productivity
The shift to remote and hybrid work is reshaping society in important ways, and these impacts are likely to continue to evolve.
For example, commuting times are decreasing, people are moving out of cities, and the line between work and home life is blurring.
But a recent study by the San Francisco Fed shows that declining performance and productivity aren’t the problem. The study found little evidence that the shift to remote or hybrid work was impacting productivity, neither hurting nor promoting it.
And consider the following. Although some executives argue that employees are unproductive and inefficient at home, research from the University of Pittsburgh shows that office duties do not improve the financial performance of employees or companies. Instead, we found that it can reduce employees’ job and job satisfaction. life balance.
An analysis of S&P 500 companies that have implemented in-office mandates finds that the mandates have not boosted financial performance or value, remaining on par with companies that allow virtual work.
However, researchers observed a “significant decline in employee job satisfaction,” which likely explains why 80% of employers who forced a return to the office later expressed regret over the decision. I guess he is doing it.
These obligations have little to do with productivity or profits, but rather allow “employers to use return-to-work obligations to reaffirm their control over employees and to blame employees as scapegoats for poor corporate performance.” That could be related, said report author Mark Marr. a business professor at the University of Pittsburgh told Yahoo Finance.
“Clearly, managers need to stop viewing remote work as a threat,” Marr said. “Rather than blaming remote employees for being less productive or less loyal to their employer, managers should encourage long-term, flexible workplaces that encourage high employee performance and promote employee loyalty. We need to embrace remote work as an opportunity to develop a strategy.”
For every taste
Vivian Riley, 47, is an accountant from Manchester, New Hampshire, who joined her firm, Lekas, Edgar & Co., in August. She chose to spend her first year working in an office, even though she only had to work three days a week.
“I would much rather learn directly from my colleagues,” Riley told Yahoo Finance. “I think it’s definitely helped my performance. I’m new to this field and have too much to learn.”
In fact, recent research shows that the majority of young new employees like Riley want to work in an office.
“If so, companies can decide whether they can offer remote work opportunities to various employees,” Ma said. “For example, for employees just joining a company, companies may require a high percentage of these young employees to work in the office and undergo training.”
For Steve Gold, 46, an attorney with Hurwitt & Associates in Newton, Massachusetts, the opportunity to work from home is a “gift,” he told Yahoo Finance. “You can use the office whenever you want, but you don’t have to go in.”
As the father of two children, one in middle school and one in elementary school, having the flexibility to not only attend the occasional school concert but also to spend time with them after school is something Gold would “trade for a lot. “I’d be happy to get it,” he said. But in this position, that’s not necessary.
Gen Z career expert and last round career platform told Yahoo Finance.
Salaries and promotions take a hit
Still not answered: Will workers who choose to log in from home ultimately bear the brunt of the mass layoffs announced since the beginning of the year?
Workers who work remotely five days a week were 35% more likely to be laid off in 2023 than those who work in an office, according to employment data provider LiveData Technologies. The analysis found that 10% of fully remote workers were laid off last year, compared to 7% of workers working in the office on a full-time or hybrid basis.
why? Perhaps this is because when hiring managers learn of layoffs, it’s easier to cut people with whom they don’t have a close, face-to-face relationship.
Another shocking finding is that remote workers are 31% less likely to be promoted than in-person workers, according to an analysis of 2 million workers also conducted by Live Data Technologies. The Wall Street Journal reported.
Hybrid model is here to stay
While the return-to-office movement is gaining ground, many large companies seem to be settling for a three-day week for now. IBM just announced it will require U.S. executives and human resources managers to be in the office at least three days a week, a company spokesperson told Yahoo Finance.
She also acknowledged that those who do not take this obligation seriously risk losing their jobs.
“IBM is focused on providing a work environment that balances flexibility and face-to-face interaction that increases productivity and innovation and improves service to our customers,” she added. .
Last summer, Google began focusing on its policies by tracking office visits via badge swipes and showing that coming into the office becomes part of performance reviews, which influences promotions and raises. .
Remote jobs are also becoming less attractive in terms of pay, putting another push on employers to increase face-to-face time.
According to PayScale’s 2023 Compensation Best Practices Report, nearly a quarter of employers surveyed pay employees who don’t come into the office less than employees in the same position. It has been found.
Not so at Riley’s workplace.
Kelly Lekas, Managing Partner of Lekas, Edgar & Co., said, “We feel that our in-office environment provides many learning opportunities among our staff and opportunities to mentor new staff. We understand that flexibility is also important,” he told Yahoo Finance.
“New England winters, doctor’s appointments, home-based services, children, pets, these are all parts of life that can cause disruption to your schedule,” she says. “We’ve found that giving our staff the flexibility to do these things and allow them to work from home creates a positive atmosphere when they’re in the office.”
Kelly Hannon is a senior columnist at Yahoo Finance. She is a workplace futurist, a career and retirement strategist, and the author of her 14 books, including “The World’s Best.”Taking Control Even Over 50: How to Succeed in the New World of Work.” and “You’re never too old to get rich.” Follow her on X @Kellyhannon.
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