I have posted this on Reddit (askeconomics) a while back but got no good replies. Copying it here because I don’t want to send traffic to Reddit.
What do you think?
I see a big push to take employees back to the office. I personally don’t mind either working remote or in the office, but I think big companies tend to think rationally in terms of cost/benefit and I haven’t seen a convincing explanation yet of why they are so keen to have everyone back.
If remote work was just as productive as in-person, a remote-only company could use it to be more efficient than their work-in-office competitors, so I assume there’s no conclusive evidence that this is the case. But I haven’t seen conclusive evidence of the contrary either, and I think employers would have good reason to trumpet any findings at least internally to their employees (“we’ve seen KPI so-and-so drop with everyone working from home” or “project X was severely delayed by lack of in-person coordination” wouldn’t make everyone happy to return in presence, but at least it would make a good argument for a manager to explain to their team)
Instead, all I keep hearing is inspirational wish-wash like “we value the power of working together”. Which is fine, but why are we valuing it more than the cost of office space?
On the side of employees, I often see arguments like “these companies made a big investment in offices and now they don’t want to look stupid by leaving them empty”. But all these large companies have spent billions to acquire smaller companies/products and dropped them without a second thought. I can’t believe the same companies would now be so sentimentally attached to office buildings if it made any economic sense to close them.
First, a lot of studies have shown the productivity boost for WFH may not be uniform or actually exist. Whether the possible productivity boost is worth the money on office space hasn’t been answered, it is likely more in that gray area than WFH proponents want it to be.
Second, while generic work productivity is about the same level, teaching new skills isn’t. We have data showing educating from home has been worse for students, and that seems to be filtering into the office place. Junior staff aren’t picking up skills fast enough and are probably a major reason why WFH productivity measures are lower than expected. It isn’t because new staff are lazy, just that they have fewer people to ask questions to and don’t ask as many questions in general.
Third, building and maintaining a work network has fallen apart. People don’t know others in an office, which can be a problem in flat company structures where communication is not expected to go through the boss only. So you have people who feel like they are doing productive work, but aren’t talking to others. This can cause a lot of rework that the managers see in slipping deadlines.
That said, the answer seems to be hybrid for these jobs as workers won’t tolerate full time in the office anymore. However, hybrid has been a clusterfuck in a lot of companies because the hybrid model is new and not everyone knows how to manage to it.
Great summary, I wish all the WFH fanatics would read and understand this. I really hate how in most online spaces they make it seem like 100% WFH is the answer for everything.
Thanks for helping bring this perspective to light. Most threads on work from home go all in on productivity being higher, but don’t take into account the longer term consequences of working from home on knowledge sharing, education, training, and team building. Even if productivity is higher now, that doesn’t mean it will remain that way in the long run.
As someone who did his last year of college and first two years of career from home this is spot on. My senior simply refused to teach me anything, or even answering my chats and my manager didn’t care. I had to learn doing inverse engineering on the excel files because I cannot even sit at his side and saw him work ans learn. I changed companies a month ago to a full-time in office position and I’m learning more in this month that what I did on the past two years (its also helps that my new manager is also a college professor and have like 40 years of industry experience).