Top Articles 25% of Executives Hoped Return to Office Would Make People Quit: Unpacking the Controversy
In recent years, the debate over remote work has intensified, with some businesses staunchly advocating for a return to the office (RTO). A recent study reveals a startling motivation behind this push: one in four (25%) VP and C-suite executives admit they hoped for voluntary turnover as a result of their RTO policies. This controversial revelation sheds light on the hidden agendas behind the shift away from remote work and raises questions about the true intentions of corporate leadership.
The Study: A Closer Look
Conducted by BambooHR, the study surveyed 1,504 full-time US employees, highlighting the growing tension between remote and in-office work. While some employees thrive in a physical office environment, others find remote work more conducive to productivity. Despite the benefits of remote work, such as increased productivity and support for disabled or caretaking employees, the study uncovered that 25% of executives saw the RTO mandate as a strategy to encourage some employees to quit.
The Impact on Employees
The implications of this mindset are significant. The study found that 28% of remote workers feared being laid off before their in-office counterparts. This fear is not unfounded, as nearly two in five (37%) managers, directors, and executives believed their organizations enacted layoffs due to fewer employees quitting during the RTO push than anticipated. This suggests a deliberate attempt by some executives to reduce their workforce through voluntary attrition rather than direct layoffs.
Executives’ Hidden Agendas
This revelation aligns with previous insights into executive attitudes toward remote work. Mike Hopkins, SVP of Amazon Video and Studios, admitted last year that he had “no data either way” regarding Amazon’s return-to-office mandate. This lack of concrete data raises questions about the true motivations behind such policies. The recent findings suggest that promoting voluntary turnover might be a strategic move to streamline operations and cut costs, even if it means losing valuable talent.
The Fallout: High Performers Leave
A study from last month further complicates the narrative, revealing that the RTO push is causing high performers to leave companies at a higher rate than lower performers. This unintended consequence contradicts the goals of most executives, who likely do not intend to lose their top talent. Instead, the push for RTO appears to be backfiring, resulting in a talent drain that could harm long-term business performance.
Real Estate Justifications
Before these studies, many speculated that the insistence on in-office work was driven by the need to justify corporate real estate investments. Companies with significant investments in office spaces might have been reluctant to embrace remote work fully, fearing the potential devaluation of their properties. However, the new data suggests that voluntary turnover might be an equally compelling reason for some executives.
The Broader Context
The controversy surrounding RTO policies is just one facet of the broader debate on remote work. Recent news has highlighted other inflammatory issues, such as the ongoing struggle for work-life balance and the impact of remote work on mental health. For instance, a report by the American Psychological Association found that remote workers are more likely to experience burnout due to the blurring of boundaries between work and personal life. This underscores the need for companies to support their remote employees rather than coercing them back into the office.
We found this piece by Newwallstreet.co to highlight some of the more common problems associated with returning to the office. Give it a read:
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A study found that a CEO will locate the company’s office as close to his home as possible, even if 90% of the employees need to commute an hour+ to get there.
So the chances are that your CEO doesn’t care that you now have to spend thousands more each month on commuting, food, clothing, daycare, etc. Your CEO also does not care about your 2 hours a day spent commuting.
Here is what your CEO does care about:
- His house in the Hamptons
- Investor emails asking about accounting discrepancies
- Renovating his kitchen
- Getting his kid into the best Tribeca preschool at 70k per year
- Golf (thank you reader for reminding me!)
We asked three new yorkers about their experience from 2020-2023 working in corporate America and here is the common theme:
Their company recorded record profits in 2020, 2021, and 2022 while working remotely, executives cashed out and gave measly bonuses. In tech, as soon as hard times hit, they laid off 10-40% of the company and forced return-to-office policies.
An example of one layoff you can see right in this SEC filing, for which the same quarter they recorded near-record profits.
If you work in big 4 accounting, you know that executives at one firm, in particular, voted to split and go public for a big payday…
Meanwhile, let’s look at a few things going on right now.
This is a millennial-focused blog, and if you are a millennial then you certainly know about avocado toast. That is, boomers love to talk about it…
Despite every piece of evidence showing that personal finance habits have nothing to do with housing affordability, the “wasteful millennial narrative” continues to be pushed. We call this the media-industrial complex of propaganda.
Now, let’s look at some data. Homes are less affordable now than they were at the height of 2007.
Inflation is rampant, accounting for a 70% increase in the price of eggs, 30% in regular food, and the propagandized CPI number of 9.1% for all goods.
source: tradingeconomics.com
Largely, life milestones are being postponed or forsaken altogether due to unaffordable asset classes. Yet, we continue to see Employers question why people do not want to work as hard despite the clear evidence that incentives are the lowest they have been in generations.
If we are to look at incentives through labor share, then this report from Mckenzie puts it clearly. “The labor share of income in 35 advanced economies fell from around 54 percent in 1980 to 50.5 percent in 2014”. The report, now outdated, states that the return on labor or labor share is in a state of decline as the return on capital is increasing.
According to research lead by Prithwiraj Choudhury, associate professor at Harvard Business School, published in 2019, companies benefit when employees work remotely. Letting workers choose their locations can boost companies, employees, the environment, and the economy.
It increases productivity by 4.4% on average, reduces turnover and lowers organizational costs.
According to this research, work from home could add $1.3 billion of value to the US economy each year.
More remote jobs could lead to driving 83 million fewer miles per year, reducing emissions by 44k tons.
Hiring costs might fall by more than 4% and companies could save over $38 millions in office costs
Now let’s shift from earnings to savings to further enforce the point that life milestones are no longer achievable and that appropriate work incentives no longer exist. 56% of Americans don’t have $1,000 saved for emergency expenses. And household debt hit a record of $16.9 Trillion on 2/17/23.
Why are we talking about this? Because it’s clear that this is not just a class issue, it’s a generational issue. All logic and common sense tells us that we are just as productive if not more productive while working from home, yet leadership tells us that we must return to office for camaraderie, innovation, etc BS.
Let’s face it, they want to reduce headcount and they want to control you. They might even be happy if some of us got culled by the new york subway system to save them the trouble.
I challenge each and every one of you to speak to your boomer parents tonight and try to explain how homes are unaffordable, how wages have not grown in 40 years, and how you could save 50% of your paycheck and still be worse off than they were making $10/hr in 1980.
What you will find is that they simply can not comprehend it. Neither does your CEO, but the difference is that your CEO does not care in the first place.
But you know who does care? We Care! Join the tribe and stay informed with the information that can help you negotiate remote work and raises. “
Conclusion
The revelation that 25% of executives hoped for voluntary turnover through RTO policies is a stark reminder of the complexities and hidden agendas in the remote work debate. While some businesses may benefit from reduced headcounts, the broader implications for employee morale, productivity, and talent retention cannot be ignored. As the work landscape continues to evolve, it is crucial for companies to prioritize transparency and employee well-being, ensuring that their policies genuinely support their workforce rather than undermining it.
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