Four years after the pandemic forced people to work from home, businesses are increasingly pushing for a return to the office. However, for numerous employees, flexible work options remain essential.
Peter Cappelli, a management professor at the University of Pennsylvania’s Wharton School, has a new book written together with Ranya Nehmeh, a workplace expert.Praise for the Office: The Boundaries of Hybrid and Remote Workoutlines the business rationale for employers encouraging employees to return to the office.
Here are edited excerpts from my recent discussion with Cappelli:
Kerry Hannon: Why is the argument for working in the office more compelling than ever?
Peter Cappelli: We have experienced a time marked by significant discussions about remote work, with many companies continuing in different forms of remote setups, primarily hybrid. Currently, there is increasing acknowledgment among employers that it has not been very effective.
As business resumed and circumstances grew somewhat more stable, it became simpler to recognize some of the negative aspects. Just maintaining operations was not sufficient.
We are at a critical turning point where businesses must choose whether they truly want to bring people back. The longer you delay, the more challenging it becomes to attract them back without significant effort.
Currently, individuals may express, “I’ll resign if I need to return to the office,” but it appears they don’t truly mean it. Naturally, this is because stating you will quit is different from genuinely leaving a steady income.
What’s the issue with a flexible work setup?
People simply aren’t showing up. That might be the main reason. There’s an increasing understanding that individuals are often not present on their designated days. If you desire this for your organization, you need to monitor and handle attendance accordingly.
That rests with the managers themselves. It’s not that we believe you aren’t capable of hybrid work, but if you choose to implement it, it demands significant effort from the management side.
Many employers praised the effectiveness of remote work just a short time ago. What has changed?
One aspect that has shifted is the labor market has become less intense. It’s not true that individuals are changing jobs frequently at the moment because there are simply not many job opportunities available. The quantity of positions that offer some level of remote work is decreasing.
At the executive level, right after the pandemic, they were relieved that operations continued. There were very low expectations. What has shifted is that CEOs now believe they are missing out on something, and employees’ opposition to returning to the office has decreased. That’s why there’s currently a strong push.
Not long ago, there was resistance from employees and some delay in addressing the issue. Employers were hesitant to take responsibility for their workers. The job market was competitive. In truth, remote work was initially a temporary measure during the pandemic that led to a more lasting challenge.
What is the strong benefit of working face-to-face?
The importance of personal connections, the knowledge we gain from one another, the teamwork that emerges when addressing challenges, and the inspiration and dedication that arise from being with others.
Our perspective isn’t that you need to be in the office constantly — but building relationships is very important. Think about what it would have been like if no one was in the office when you first started your career. You would have felt completely out of place.
If you consider how we gain knowledge about office work, it’s through observation. You come to understand the values of the organization. You pick this up from the discussions taking place in the office. You can witness how the manager responds to various requests and issues.
As you progress, you stay informed and have the chance to contribute and make an impact. You might intercept your manager between appointments and share a small piece of information, while building connections that allow you to address issues.
If you’re in the office and require assistance from someone, and it’s time-sensitive, simply walk around the corner and pop your head into their doorway to ask a brief question.
These are the types of elements we overlook when transitioning to remote work — along with the broader reality that individuals gain energy from collaborating with others.
With remote work, individuals also dedicate more time to meetings that lack value. Many of these issues could be resolved, but the reality is they aren’t.
What is one benefit of working in an office that most people overlook?
You will make friends. You will develop your social connections. Remote workers are experiencing a decrease in their social networks, which plays a role in the growing issue of loneliness and the absence of meaningful relationships.
Is remote work as significant as it seems in terms of the number of individuals who work this way?
No. In Europe, for instance, where employees have traditionally held more influence, I assumed remote work would remain. It hasn’t. Most people have returned to the office. In Asia, the majority have also gone back to the office. In the United States, the most recent data we have from the government, which is somewhat outdated but no one believes has increased since then, shows that over 70% of U.S. employers have no remote or hybrid workers at all.
That sounds amazing. However, keep in mind that the majority of employers are small businesses. Remote and hybrid work, especially, tends to be more common in large cities and big corporations. It’s not available everywhere, nor is it present in every type of job. It’s primarily limited to white-collar positions.
Is the future of work definitely not remote? Right?
You’re correct. Occasionally, someone shares a list of companies that offer fully remote positions. These are typically businesses that started as remote-focused. By the way, what caught my attention about these companies is that they have numerous guidelines on behavior, which is quite different from an office setting. It demands significantly more management effort and attention than we’ve typically invested.
Have a query regarding retirement? Personal finance? Any career-related topics? Click here to send Kerry Hannon a message.
What is your final advice for employers on how to handle the evolving landscape of work?
If you choose remote or hybrid work, positive results don’t occur automatically. It is possible to succeed, but it demands additional time and effort in terms of management, more guidelines, more procedures, and stronger leadership.
And for employees?
Stay focused on practical steps. If you’re just starting out, work from the office. Be cautious when considering remote roles because I believe it won’t be long before CFOs question, ‘Why is Peter an employee? We never see him. Why not just hire him as a contractor?’ I expect this shift to occur fairly soon.
Kerry Hannon serves as a Senior Columnist for Yahoo Finance. She specializes in career and retirement planning and has written 14 books, including the upcoming “Retirement Tips: A Gen X Guide to Ensuring Your Financial Security” “Control at 50+: How to Thrive in the Evolving Workplace” and “Never Too Old to Get Rich.” Follow her onBluesky.
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