Here’s a rare sight: a CEO of a large company has spoken out in support of remote work for employees, slamming those firms that drag staff back into the office against their will. Dropbox boss Drew Houston compared RTO mandates to trying to force people back into malls and movie theaters.
Speaking on an episode of Fortune’s “Leadership Next” podcast, Houston said what most people have long thought: that returning to the office is a waste of time and money when employees can do exactly the same tasks at home.
“We can be a lot less dumb than forcing people back into a car three days a week or whatever, to literally be back on the same Zoom meeting they would have been at home,” he said. “There’s a better way to do this.”
Commercial.
Real Estate.
I am not 100% sure of the physical footprint of office space per employee of DropBox in comparison to other highly computerized companies, but…
…in addition to the just subborn nature of a useless management class at many companies realizing they are basically useless and don’t deserve to be paid a wage, because their workers can work just as well, or better, with far, far less ‘oversight’ from them…
Fucking real estate.
The C Suite knows that if they allow remote work to become normalized, then all their fancy office buildings are worth far less than they otherwise would be, and that then they’d go tits up, underwater, on all their various kinds of financing they’ve got on them.
Instead of managing a transition to a new paradigm in a sensible and controlled manner, that would allow them to gradually unwind from the RE, from the offices themselves… which could be done over time via the cost savings and increased efficiency from remote work, and laying off (restructuring, whatever) most of their managers… nope, they’ve almost all decided that that cannot be allowed.
It’s exactly this, 1000%. I work for a small company that had a return-to-office mandate a few years ago when Covid began initially winding down as access to vaccines became widespread. I was working fully remote and had leased an apartment over an hour away from the closest branch office in an affordable part of town. We had our most profitable year ever in the nearly 50 year history of the company in 2020 when literally every employee was working remote. Morale was up, I was saving money that wasn’t going to gas or car maintenance, and I was feeling positive about the future of work-life balance.
Then, one day, I get called in for performance review, and it was all smiles and sunshine and then they said “You’re doing a great job Furbag, but we’d like to see you back in the office for a minimum of three days per week.” That was the first and only negative comment I had ever received on a performance review since starting for the company. When I escalated the results of my performance review to management, wanting a more clear explanation for why I am being asked to commute 1+ hours in to work almost every day from the outskirts of the bay area, they told me exactly what you said “We’re paying for this building, so we want people physically in the office to justify it. Also, every other industry is doing return to work mandates so this shouldn’t come as a surprise to anyone.”
Naturally, this is still a sore spot for me. The company didn’t learn it’s lesson and still follows industry trends like little lemmings (and not the good kind that post here) while looking into buying up more real estate in other parts of the state to expand operations. They could be selling the building I’m working in now, and use the profits from the sale to fund everybody with equipment to work from home (desk, chair, monitors, hardware, etc) and work would continue as usual with a lot more employee satisfaction and work-life balance, but I’ve learned that owning real estate as a business is in itself a prestige that the C-Suite loves to show off to it’s competitors. “Look at this historic building we own, isn’t it grand?”, “Oh, you think that’s grand? We rent 12 floors of a 40 story skyscraper in San Francisco, beat that!”.
Managers need the physical locations to continue to exist so that they can justify their own existence, and they’ve fully convinced gullible CEOs that productivity will wane if people are allowed to do work from home “unsupervised”, even though there’s plenty of data that suggests the opposite is true.
/endrant
Yep, your personal anecdote illustrates broad cultural tendencies of the American managerial and owner class.
Office space and location is the same as buying a lambo.
Its peacocking, its dick waving.
They very rarely care about running a business well.
They care about being better than, wealthier than, more powerful than other people.
If anyone needs a refresher, go watch American Psycho again.
As another commenter once pointed out when I said something similar:
Same exact shit, just worse fitting suits and slightly better haircuts these days.
I agree with most of this except for the manager piece. Most of my managing is over Teams or the phone. Doesn’t matter where I am.
But of course, I’m just a worthless manager taking up resources so take what I say with a grain of salt.
I think people tend to overly generalize to “managers” when they really mean the middle 3-4 of 6-9 layers of management or something.
E.g. the reporting chain from our company’s CEO all the way down to me (an “individual contributor”) has 7 people between us. The most change, and with the least noticeable effect on the work I actually do, happens around layers 4 to 6 above me
There’s typically 2 reasons for this:
Sounds like you need to start a new company. Out compete the dinosaurs and drive them into bankruptcy.
they don’t want to unwind from RE if they are board members on RE companies as well as the RTO-mandate company. We should never have allowed people to be board members in two busineses.
Ding ding ding!
Correct!
But then we couldn’t capitalism as hard, so… I’m sorry but that issue is a political non-starter.
… Where I grew up, literally every single city council board member just also ran a real estate holding company at the same time.
I figured out as a literal child that this was why our local government only made nonsensical spending and taxing decisions, its the definition of corrupt, but everyone acted like I was insane.
Oh well, we’re all renters now, good job to all the people who kept voting for actual landlords to run the government.