Before the pandemic, few people took remote work seriously. Researching the phenomenon for almost 20 years, I frequently heard disparaging comments like "working from home, shirking from home" and "working remotely, remotely working."
This all changed in March 2020, and we are never going back to the workplace of 2019. Even firms that aggressively pushed in spring 2021 for workers to return to the office, such as Goldman Sachs and JPMorgan, postponed their mandates.
Working from home surged twelvefold between 2017-18 and May 2020. The pandemic is the biggest shock to American working life since the shift to military production during World War II.
Employees are driving this revolution. Surveys of 50,000 workers across the country find they want to work from home 2.5 days a week on average after the pandemic. Employees working from home frequently tell me how they enjoy the freedom of being able to go to the gym or see the dentist during a weekday, making up the work time in the evenings or on weekends. I enjoy the ability to pick up my kids from school on work-from-home days. Employees with young children are the most likely to want to work from home.
As the pandemic has lingered, many of us have become ever more comfortable with remote human interactions. The rapid spread of new coronavirus variants is further undercutting employers' push for a full-time return.
Indeed, getting employees back to the office is now a major challenge. Companies that want more in-person work will have to overcome some serious hurdles.
First, there's the labor market. A December survey revealed that more than 40% of U.S. employees would start looking for another job or quit immediately if ordered to return to the office full time. Not surprisingly, then, after Goldman Sachs demanded employees return full time to the office, the company announced it would raise its starting pay for first-year analysts by nearly 30%. In this new era, if you want employees in the office full time, you have to pay for it.
A subtler issue lurks in workforce diversity. The survey data show that people of color and highly educated women with young children place especially high value on the ability to work from home at least part of the week. One explanation is that they face a less positive in-person workplace environment. Employers that ban working from home will risk driving these employees out the door. Many organizations are striving to improve representation of women and minorities, especially in management. That may turn out to be incompatible with requiring only in-person work.