Bloomberg reports that if the job market in the United States continues to be weak in 2023, it is likely that the companies might pull back on allowing workers to work in remote mode. It is observed that there exist two camps as far as views on work from home are concerned. During the pandemic, the workforce gained immense leverage when the labor market was tight.
Two Differing Opinions about WFH
On the one hand, workers believe that it is in the office itself that work culture is built, while others think that WFH gives rise to happier employees.
According to Melissa Swift, who is associated with consultant Mercer as a workforce transformation leader, there exists an authentic divergence among various organizations, and more and more companies are picking up sides in this regard.
It appears that working from home is likely to stay. It is anticipated that approximately 75% of workers capable of remote will opt for either hybrid or fully remote mode in the long run.
4 Best Reasons Why Work From Home is here to Stay in 2023
Retention
Experts say letting workers work remotely is crucial if you intend to retain them. As per a study published by researchers at Stanford University this summer, the Instituto Tecnologico Autonoma de Mexico, and the University of Chicago, the attrition rate was slashed by letting employees work in the hybrid mode by 35%.
Revealed Caitlin Duffy, associated as research director with Gartner, a consulting firm, employees had experienced fulfillment at work at new levels while working from home.
Recruitment
With remote working, recruitment becomes easier. This is because the target geographical region is more. This is immensely helpful because specialized roles and qualified candidates are easier to get. This is a very big advantage of working from home. A company that offers work flexibility fosters its inclusion initiatives, diversity, and equity. This holds for case groups that include disabled workers that fell out of the job market during the pandemic.
Recession Cost Cuts
During a recession, every company will try to curb expenses. As such, a recession might accelerate the trend of remote working. Companies can reduce operating costs and expenses incurred on office space.
It has also been noticed that few workers allowed working from home agreed to pay cuts since they enjoy more flexibility and could cut their commuting costs. Yet another form of WFH, work-from-anywhere policies, helps bosses by curtailing labor costs. This is because employers can hire candidates from regions like Kansas, Louisiana, and Idaho, where the cost of living is low.
Risks of Reversal
If a company indulges in an about-face, those executives have a chance of risking their reputation. For instance, Elon Musk ended remote work to streamline processes at Twitter Inc., only to find out that workers were willing to opt for severance instead. This caused him to go slow and ease his stance as he requested a few staff members back to stay.
Experts say it is not a good option to take the utmost benefit of leverage in the long run, as stated by Qualtrics’ chief workplace psychologist, Ben Granger.
