In the last several months, some major CEOs have expressed their disdain with remote and hybrid work for their employees, and the list is pretty impressive when considering the companies involved. Jamie Dimon of JPMorgan Chase has been critical of remote work, as has David Solomon of Goldman Sachs; more recently, Andy Jassy, CEO of Amazon, has issued a mandate for many employees to return to work in-person. Their opinion is that while essential during the pandemic, remote work is simply not ideal for productivity and office culture. Even with hybrid work force best practices, they simply don’t buy into its merits. But this flies in the face of a significant body of research. Successful hybrid work models do exist, and companies embracing them are thriving.
(Remote work is also great–read this Bold story and see how it’s been doing as a workforce posture.)
When considering successful hybrid work models, there are a number of strategies to try. Notably, different companies as well as industries will need to adapt these models according to their specific context. But in most instances, the advantages of flexible work schedules far outweigh the disadvantages. This not only relates to employees but to corporations as well. By employing hybrid workforce best practices, productivity as well as employee wellbeing thrive. Thus, it’s hard to imagine why high-power CEOs like the ones mentioned continue to resist the obvious. The question is whether this resistance can be taken at face value, or whether other motives exist. Given the abundance of evidence supporting remote and hybrid work, it might just be the latter.
Evidence Supporting Remote/Hybrid Work
Given that it’s been a few years since the pandemic, it’s not surprising several studies exist concerning remote work. By far, the vast majority demonstrate that successful hybrid work models do exist and are common. In fact, even the studies that are less favorable show that remote and hybrid work has a neutral effect on productivity. Compared to in-person work models, most remote schedules show that employees are more productive. A third of hiring managers at major companies cite increased productivity as the main reason to pursue remote work. This is why over two-thirds of employees in the U.S. today have some type of flexible work schedule. Though hybrid workforce best practices vary, enhanced productivity seems to be a consistent finding.
Notably, companies enjoy much more from successful hybrid work models than increased employee productivity. Research also shows that companies save $10,600 per employee on average each year with remote work. These savings come from reduced commercial real estate costs, utility costs, and other in-office expenses. At the same time, it’s evident that hybrid workforce best practices improve employee retention. Surveys show that 42% of employees would take a 10% pay cut to preserve flexible work arrangements. White collar workers share this sentiment. In other surveys, only 16% of white collar workers would consider a position without remote work. Given that talent can be hard to come by, this is an important reason for companies to pursue flexible work arrangements.
In addition to the advantages that hybrid workforce best practices offer businesses, others exist for employees. A meta-analysis review of several studies shows remote work results in better employee health and lower levels of absenteeism. Naturally, this is related to the productivity factor linked to successful hybrid work models. Employees also experience less stress, sleep better, and gain better work-life balance. One reason this occurs is because of the ability to avoid long commutes to the office. On average, remote work saves employees 55 minutes a day of commute time, and it reduces their commute-related greenhouse gas emissions by 54%. Remote work also helps employees’ bank accounts by spending less on gas, car repairs, and sometimes childcare. Given the abundance of data, it seems like a no-brainer when it comes to embracing remote work.
CEO Motivations for Resistance
Despite the available research, many CEOs aren’t believing what the data is saying. For example, Andy Jassy of Amazon opposes remote work because of its potential to undermine the workplace culture. The workplace culture to which he is referring is the one where people huddle around a water cooler or conference table. They bounce ideas off one another in person, fueling creativity and innovation. But if remote work is so bad, wouldn’t productivity decline alongside decreased creative idea-making? With advances in videoconferencing and other collaborative platforms, it’s not evident why this would be the case. Successful hybrid work models actually have the best of both worlds in this regard. Hybrid workforce best practices allow both in-person and remote interactions that fuel innovation as well.
While Jassy cites this as his motivation to force workers back to the office, some doubt this as the real reason. Some have suggested that it may be Amazon’s way of encouraging employees to leave without issuing formal layoffs. The company denies this, but it’s worth considering. Other reasons why CEO refuse to adopt hybrid workforce best practices relates to power and control. Naturally, exerting leadership control and power from afar is more difficult and less rewarding. This combined with the increased amount of time CEOs may spend leading remotely may contribute to their resistance to remote work. No matter how successful hybrid work models may be, CEO cognitive biases against it may prove to be hard to challenge.
Flexible Work Schedules Expected to Stay
While resistance to successful hybrid work models persist, experts as well as managers believe in these pursuits. In fact, it is anticipated that nearly a quarter of the workforce will be completely remote by 2025. And a sizable percentage beyond this will operate in some type of hybrid work environment. The bottom line is that remote and hybrid work is effective and offers too many advantages. By employing remote and hybrid workforce best practices, companies will excel and become market leaders. And for those who continue to resist, they will see their leadership positions slide. Whether it’s through loss of talent or lower levels of productivity by comparison, firms will eventually realize hybrid is better.
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