In the three and a half years since the onset of the pandemic, companies, their employees, and governments are grappling with the evolving landscape of corporate life. There's a clear disparity in the return-to-office rates across continents and cultures. Asian and European workers, for example, are transitioning back to their desks faster than those in the US. Here we examine the emerging patterns, trends, ongoing shifts, and the future landscape of office attendance.
Gender and Education
In nearly all countries, women value the ability to work from home more than men do, a sentiment also shared by individuals with higher levels of education.
Linguistic Trends
Interestingly, remote work seems to be more popular in English-speaking countries compared to those in Europe and Asia. For instance, remote work rates in the UK are among the highest globally. Meanwhile, France reports one of the lowest. However, several European Union nations are introducing laws that support flexible work schedules.
Geographic Differences
ASIA - One reason Asian countries saw a swifter return to office life is their initial effective management of the pandemic. With the virus better controlled in its early days, many Asian employees never got too accustomed to working from home.
EUROPE - Currently, Europe has made significant strides in returning to office work, with a surprising 74% office attendance rate of what it was before the pandemic.
USA - In contrast, the US's return-to-office numbers fall behind both Europe and Asia. This slower pace is partly attributed to the higher acceptance of remote work in roles within technology, finance, and business services. These sectors, known as "knowledge workers", primarily involve computer-based tasks, making remote work a feasible option. For instance, American employees in the tech, finance, and professional services sectors spend almost a full day working from home than those in government and healthcare.
Measurement Systems
Additionally, American companies are notably ahead in employing sophisticated performance measurement systems essential for remote work, given the lack of direct observation of employees.
Infrastructure and Living Conditions
Factors such as efficient public transport and home sizes play a crucial role in remote work choices. In the US, spacious home offices mean that many don't find the office environment preferable. Compare that to Hong Kong, where smaller living spaces and an efficient transport system make commuting to the office more desirable.
When it comes to social interactions, European and Asian employees seem to value workplace connections more than Americans. This could be attributed to the urban planning in European cities, which promotes a blend of work, recreation and residential life, and stands in contrast to American cities where office locations are often determined by zoning laws.
Social and Cultural Factors
Cultural values also influence work habits. Paris and many Asian cities emphasise physical presence at the office. In Germany, a significant 43% of the workforce spends at least four days in the office. China's high office attendance can be linked to its demanding "996" work culture. This ethos of working from 9 a.m. to 9 p.m. for six days a week is entrenched in Chinese corporate life. Loyalty to employers is notably strong in countries like Japan and South Korea.
Industry-specific Nuances
Interestingly, industry specifics can often outweigh geographical considerations. For instance, a Japanese software company might share more similarities with its US counterpart than with a Japanese manufacturing firm.
Legislative Interventions
European policymakers are actively shaping the future of work, promoting flexibility. A notable example is the European Union's 2021 "right to disconnect" proposal. This initiative pushes for the legal rights of EU employees to disengage from work-related communications outside business hours.
Globally, countries from Colombia to Canada are recognising the value of flexible work structures. For instance, in the Netherlands, there's a legislative push to establish a legal right to work from home. Belgium has even granted its employees the right to a four-day workweek without any pay cut.
US policymakers on the other hand have largely remained passive, leaving it to individual companies and their employees to navigate the shifting work environment.
Real Estate Implications
The McKinsey Global Institute predicts that the pandemic's ripple effects could wipe out up to $1.3 trillion in real estate value in major cities by 2030. Currently, the office occupancy rate in the US stands at half of what it was before the pandemic.
Shifting Power Dynamics
In the earlier pandemic days, the chaotic response to return-to-office (RTO) strategies was expected. With the virus raging and massive workforce resignations, it was a tumultuous period. Now, however, with economic conditions cooling, hiring rates have stabilised, providing employers more authority in decision-making. This change in power dynamics has amplified the call for employees to return to offices.
For instance, tech giant Meta recently introduced a stringent 'In-Person Time Policy'. This measure, effective from 5 September, entails tracking card swipes at office entrances. Employees not adhering to this mandate face potential termination. Similarly, Amazon's CEO Andy Jassy has clearly indicated the company's stand on the issue. He stated that employees unwilling to spend at least three days a week at the office might have to reconsider their position at Amazon.
Major corporations like Amazon, Zoom, Goldman Sachs, and Disney are outlining their RTO strategies. These plans range from five days of office work at Goldman Sachs to a more lenient three days at other companies.
Experts believe that the power dynamics in employment have shifted back to employers. As layoffs increase and the job market cools, employers find themselves in a position of strength. This shift allows them to enforce stricter RTO guidelines.
The Productivity Myth
Many CEOs advocate for office work, believing it enhances productivity. Amazon's Andy Jassy has expressed this sentiment, emphasising the benefits of an office environment in fostering learning and strengthening company culture.
However, research on remote work productivity hasn't yielded clear results. According to the Bureau of Labor Statistics in the U.S., there was a 4.4% increase in employee productivity in 2020 and a 2.2% rise in 2021. A decline was observed in 2022 however, interestingly, in the second quarter of 2023, labour productivity surged by 3.7%, marking a 1.3% growth from the same period the previous year.
The Future of Office Attendance
Many workplace experts believe that a blend of office and remote work, two to three days a week in the office, will likely be the new norm.
The idea of a full five-day office week seems increasingly outdated. Imposing a strict top-down approach to RTO can damage the trust between employees and their employers.
Studies suggest that while employees value office interactions, they are not in favour of forced RTO policies. About 68% of full-time employees support a hybrid work model, cherishing the social interactions, collaborations, and superior facilities an office offers. However, the consensus is clear - companies should incentivise, not compel, their return. Moreover, management should be transparent in their intentions, communicate their plans openly and collaborate with employees in shaping the optimal work model.
In the competitive world of talent acquisition, offering a flexible work model is a savvy strategy. While the job market may have lost some of its heat, the competition for top talent remains fierce. The workforce values flexibility, and any denial of this preference could see companies lose their best assets.
About Fusion Associates
Since 1998, Fusion Associates has been placing experienced professionals across the globe within consumer markets including consumer goods, fashion, sporting goods, healthy living and luxury.
Environmental, humanitarian, social and political concerns are close to the Partners both in and out of the business. We pride ourselves in partnering with industry leaders who wish to contribute to a better, more sustainable future. Working with global companies that are at the forefront of innovating and integrating sustainability into the heart of their business, we have helped build purpose-led teams from leadership to subject experts in biodiversity and animal welfare.