Danger for employers in work from home shift

Surveys show a majority of workers want to continue their flexible arrangements long after the risks of the pandemic subside.

The “work from home” revolution that transformed enterprises and government operations during the pandemic is entering a new phase.

And what is emerging is a vastly different workplace in many enterprises. Some are demanding their people return to the CBD but around the world company managers are finding that such strategies are dangerous—they are likely to lose parts of their skills base at a time of a skills shortage.

In Australia there is a boom in decentralised living to take advantage of low-priced real estate and a better environment. From Ballarat to Toowoomba building is booming. Those that have decentralised will change jobs if they are ordered back to the CBD five days a week.

The studies coming out of the US show that the work force post the pandemic will be very different to the one that existed in 2019, when people usually left their jobs simply to gain better pay.

According to Prudential’s “Pulse of the American Worker survey”, one in four workers are planning to look for opportunities with a new employer once the threat of the pandemic has subsided.

Overwhelmingly employees say they are looking for a new job with more flexibility. Indeed, even among those who aren’t considering changing jobs, half of people currently working remotely say if their current company doesn’t continue to offer remote-work options long-term, they will look for a job at a company that does allow flexibility.

It’s clear that a majority of workers want to continue their flexible arrangements long after the risks of the pandemic subside. Most want a hybrid model of working, where they split their time between an office and a remote location.

And that particularly applies to two-income families with young children. Flexibility has greatly improved their lifestyles.

US research shows that job advertisements are now twice as likely to mention the ability to work remotely than before the pandemic. And on a US career site dedicated to remote work, registered jobs are up around 20 per cent.

But the Prudential survey also shows that 80 per cent of those looking to leave are also concerned about their career advancement. The pandemic caused them to rethink their skill sets. More than half of potential job-hoppers have sought out new training and skills during the pandemic, possibly to prepare to change jobs in the next few months.

With workers better able to take a job from anywhere, it’s more likely that those with valuable skills will seek jobs that pay well, have opportunities to learn and advance, and provide benefits that centre around work-life balance. Those that do not have key skills may not have that choice.

There is a real danger that we will see even more “have” and “have not” divisions in the community. The “have nots” will often have long commutes.

The total revolution becomes very challenging for employers.

The Massachusetts Institute of Technology Media Lab’s Humanyze division analyses how Fortune 500 companies and other large enterprises make decisions. They have concluded that if too many workers regularly spend more than two days a week away from the office it will greatly damage the long-term dynamic of the enterprise.

Australian professional firms warn that we may create a new generation of under-educated lawyers, engineers architects, accountants and other professions. Young professionals learn from their peers and it is very difficult to transfer knowledge remotely. If, longer term, there is too much remote working we may produce a whole generation of young professionals who will be unable to make it to the senior ranks because they will not have the same skills as the current generation. The long-term productivity and performance of the professions will be affected.

But there is another side. A number of CBD cafes say business is down on Mondays and Fridays, indicating the long weekend syndrome is creeping into parts if the workforce. I was yarning to a professional group this week who said that they wanted to transfer an important talent to Australia but a demanded condition of that transfer was that he be able to live and spend most of his working time by the sea. That was agreed.

Inside offices the pandemic has caused many employees to hold their conferences at their desk because the technology in meeting rooms has not caught up with what can be carried out via their computers. They do not need to be in the office.

But CEOs tell me that they have learned an enormous amount about what is happening in the market place by having people back in the CBD. The business would stagnate if they went back to remote working.

The enterprises that master this complex task are going to me among the most successful.