Will Commuting to Work be a Relic of the Past?
The COVID-19 pandemic has many thinking what life will be like when things eventually “go back to normal”. Many are wondering if the mask-wearing trends will continue, while others believe handshakes will be gone with forever. In terms of working remotely, many experts are not counting out the possibility that this may be a sign of new times and the future for some businesses. With the growing costs of rent overhead and the prevalence of computers in the workplace, there is a very real possibility that working from home will be much more common once the pandemic has passed.
With online chat platforms such as Zoom and Microsoft Teams, many companies have been able to continue their team meetings to discuss future plans and projects. While some believe that there is no adequate substitute to having an in-person meeting, many surveys have been put together to assess the effectiveness of remote working which suggest the contrary. Upwork, a prominent freelancing company working to connect businesses and individuals, conducted a survey which gathered that 56% of hiring managers believe that the remote working experience has gone better than expected. One third believe that productivity has increased, while less than one third believe productivity has decreased. It is also worth noting that there are not many recreational distractions at the moment; once businesses and sports leagues begin to open up, these managers may have different views. This survey also revealed that 62% of these hiring managers plan on offering remote working opportunities in the future (Ozimek).
The industry in which a company operates will also be a major factor in determining the scope of their remote working. Tech, for instance, has seemed most favorable with the idea of letting their employees work from home. Twitter CEO Jack Dorsey, for example, has announced that he will allow all Twitter employees to work from home “forever.” Days later, he announced to the employees of his other company, Square, that they may work from home for as long as they would like. The Bay Area Council, which comprises many of the most respected tech companies in Silicon Valley, announced that 20% of companies will offer fully remote working experiences while 89% will offer partial plans (Kelly). This new proposal will change the game in terms of recruitment. These top tech firms can now recruit from all across the United States and beyond, as the employees do not necessarily have to relocate. Mark Zuckerberg hinted that Facebook may investigate an adjusted pay scale to reflect cost of living for remote workers. Whether these pay scales will be put in place as the new norm in the industry remains to be seen but the thought of it is likely to make each Facebook employee ponder salary issues. (Dwoskin).
As companies begin to reevaluate the way they run their businesses, major question marks are generated for real estate firms across the United States - both commercial and residential. Farat Ali, CEO of leading marketing firm Skift, announced that the firm will save $600,000 per year by not renewing the lease on their headquarters in Manhattan (Dool). Many companies with less-than-elite revenue streams may try to cut costs by eliminating office spaces. On top of this, there is a snowball effect with commercial and residential real estate. If companies are not locating themselves in big cities, people are less likely to be willing to pay the higher rent in these cities. This could dramatically drive down rent in the commercial and residential spheres if the trend continues.
The inception of 5G was the topic of much serious discussions before the COVID-19 outbreak hit the United States. Once the virus is contained, and 5G signaling becomes widespread, it will dramatically enhance the wireless speed on which we run our devices. If 5G can prove to be as fast as experts predict, look for more companies to find ways to work remotely. Companies are always searching for ways to cut costs but after the recent loss of revenue due to the crisis, motivation to that end is now greater than ever. For many companies, cutting the overhead of rental costs may make more sense than laying off workers. If they realize no significant loss in productivity, the idea of commuting to work may be a thing of the past.
Works Cited:
Dool, Greg. “Skift to Give Up Physical Office and Go All-Remote, CEO Says: News & Notes - Folio:” Folio, Folio: 29 May 2020, www.foliomag.com/skift-going-remote-outside-furloughs-staff-news-notes/?utm_source=morning_brew.
Dwoskin, Elizabeth. “Facebook Will Now Let Some Employees Work from Anywhere, but Their Paychecks Could Get Cut.” The Washington Post, WP Company, 21 May 2020, www.washingtonpost.com/technology/2020/05/21/facebook-permanent-remote-work/.
Kelly, Jack. “After Announcing Twitter's Permanent Remote-Work Policy, Jack Dorsey Extends Same Courtesy To Square Employees.” Forbes, Forbes Magazine, 19 May 2020, www.forbes.com/sites/jackkelly/2020/05/19/after-announcing-twitters-permanent-work-from-home-policy-jack-dorsey-extends-same-courtesy-to-square-employees-this-could-change-the-way-people-work-where-they-live-and-how-much-theyll-be-paid/#472799ce614b.
Ozimek, Adam. “The Future of Remote Work.” Upwork.com, 2020, content-static.upwork.com/blog/uploads/sites/6/2020/05/26131624/Upwork_EconomistReport_FWR_052020.pdf?utm_source=morning_brew.
