Todd Monahan, WCRE | CORFAC International
As we head into the last quarter of the year, employers are working hard to encourage employees to return to the office. Every company is different and typically the decision of whether or not to bring employees back depends on their roles at the company. Is it a purely administrative or an analytical role that can easily be accomplished remotely? Or is it one that requires collaboration, client interface and perhaps focused teamwork?
The traditional five-day week in the office is over as we know it. Technology has enabled us to be productive from anywhere at any time. This was true before the pandemic, but the global shutdown demonstrated to employers that work could still get done and employees could be trusted to remain productive. Now over 30 months into remote work, employers would like to bring employees back. Productivity is not necessarily where it was pre-pandemic and employers have realized the benefits of face-to-face collaboration, socialization and the creation of company culture. As Jamie Dimon famously said, “I can’t teach culture on Zoom!”
Most small companies and local employers have been back in the office for well over a year. Larger employers, who must roll out fair and equitable policies, have had numerous delays due to variants in the virus, a focus on employee safety, and a resistance to return to the office. Now however, many large employers are finally coming out with policies requiring employees to return at least 2-3 days per week. In some instances, companies gave employees an option to work remotely indefinitely. Many relocated to areas with a lower cost of living, less congestion, and perhaps less crime. Some national employers have implemented a cost-of-living index. For instance if you were living in a city such as New York City or San Francisco but relocated to Nashville, your annual pay would be adjusted accordingly. To many this seemed like a fair compromise: Lower pay but perhaps a better quality of life, less stress, and more free time.
The labor market is extremely tight, and the ongoing war for talent has only intensified. Many employees are demanding the ability to work remotely and if not granted, they will leave and look elsewhere. Much has been written about the great resignation. Now a new challenge has emerged. There is a concern among remote workers that preferential treatment will be given to those who show up more frequently in the form of promotions, raises and top-choice client assignments. Some remote workers are demanding equality so they are not overlooked or their efforts are not discredited.
I predict that over time there will be a correction where a majority of employees return to an office several days a week. There will be exceptions based on company culture, what an employee does day to day and perhaps a company’s strategy to reduce their real estate footprint. However, it is only human nature that those who frequent the office, attend more meetings face to face and interact informally with colleagues will excel and gain an advantage. I believe that in 2023 and into 2024 we will gradually see a return to a new normal. This new normal may not require employees to be in the office all day every day, but there will be a return nonetheless. Collaboration fosters creativity, innovation, the achievement of goals, and ultimately success.
Todd Monahan is executive vice president & managing director ·at Wolf Commercial Real Estate (WCRE) | CORFAC International.