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Working from home is merely a benefit that has grown in popularity, comparable by importance to health insurance in certain industries, but fundamentally it is
by clnq 3y ago
Working from home is merely a benefit that has grown in popularity, comparable by importance to health insurance in certain industries, but fundamentally it is a benefit.
The decline in productivity can be attributed to a broader decrease in workplace morale in most American corps, for many obvious reasons. Contrarily, I have not come across stories of productivity issues in smaller organizations with effective management and engaged employees.
We are on the verge of a significant labor transition from poorly managed mega corporations to companies that prioritize employee well-being, trust-based management, and shared goals. Many of the top performers from big tech are already either founding these better companies or joining them, conceding to lower salaries and benefits to get some of their work satisfaction and morale back. Eliminating a valued employment benefit like remote work will only alienate more employees and hasten the shift.
In other words, if your Glassdoor ratings are below 65%, it's not work from home, it's that a large proportion of your employees hate working for you. And you need carrots, not sticks, to improve morale. I cannot believe this even needs to be said.
- rahimnathwani 3y ago"to companies that prioritize employee well-being, trust-based management, and a shared objective" These are neither sufficient nor necessary. There are (and will be) companies that succeed without prioritizing one or more of these. And there are (and will be) companies that prioritize all three and yet fail.
- clnq 3y agoSuccess is a different matter and I agree with you on that. But what I am saying there's a strong link between employee morale and productivity, and that people prefer to work in high-morale companies.
- rahimnathwani 3y agoThe article we're discussing uses the term 'productivity' in the economic sense of 'labour productivity', i.e. GDP or GVA divided by labour hours. Are you using 'productivity' in that same sense?
- clnq 3y agoYes, I would use gross value added to define productivity. But it may not have a strong correlation with business success as it doesn't directly correlate with profitability, net worth, revenue growth, market share, or other success metrics. High GVA businesses in competitive markets might experience low margins, limited growth potential, and significant annual losses. Companies in commodity sectors like oil or precious metals may have large cash flows but low margins and profits. Additionally, GVA can be influenced by expenditures, such as R&D costs, which might not yield returns. Highly leveraged and indebted businesses can also have inflated GVA due to higher cash flows. Moreover, a profitable company with high GVA can face external challenges, such as legal or regulatory issues, affecting its success in the medium or short term. Nevertheless, strong employee morale and engagement will contribute to increased productivity or GVA in all cases I can think of. The problem with WFH in the pandemic is that the pandemic was a confounding factor that influenced WFH rates, but also mismanagement and morale itself.
- rahimnathwani 3y agoYes, I would use gross value added to define productivity. If I've understood you correctly, you're saying that the three factors you listed earlier will drive companies to have high GVA per labor hour, and that companies that lack one or more of those will have lower (or perhaps even negative) GVA per labor hour. Is that right?
- jacknews 3y ago"Working from home is merely a benefit that has grown in popularity, comparable by importance to health insurance in certain industries, but fundamentally it is a benefit." Not at all. It is desirable for many people, not all, but it is not just a benefit. It's a different way of working. For some kinds of work, it's a better way of working.
- clnq 3y agoI maintain that in the majority of the tech industry, remote work is a sought-after and highly valued benefit. However, in the long run, the transition to working from any location where one can be most effective may be regarded as a more fundamental aspect of the modern workplace. Nonetheless, some might point out that in the United States, medical insurance is considered essential to employment, yet it is frequently presented as a benefit. The definition of an employment benefit is pretty loose. But I understand your sentiment — this could become (or perhaps you already see it becoming) larger than a typical employment benefit.
- jacknews 3y agoIt's not about whether the 'benefit' is standard practice or not. Working remotely is simply a more effective way to work in some cases.