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To Return to the Office, Or Not Return to the Office, That is the Question (Future of Work Thread)

Goldman Sachs’ CEO demanded all employees return full-time to the office. Only half showed up
BY GEOFF COLVIN
https://fortune.com/2022/03/11/goldman-sachs-return-to-work-employees-david-solomon/
Fighting a strong trend toward hybrid work, Goldman Sachs CEO David Solomon has repeatedly insisted that employees return to the office full-time, leaving no doubt that he views remote work as a temporary aberration.

But on the day the investment banking giant reopened its U.S. offices in February, after shutting down during the Omicron wave, just 50%, or about 5,000 of the building’s 10,000 workers, returned to its New York headquarters, despite receiving more than two weeks’ notice.

In early March, New York City Mayor Eric Adams, who has been on a dogged mission to bring office workers back to the city, hosted a town hall meeting for the bank’s employees. While the internal gathering was closed to press, Adams later told the media that Goldman had just a “couple of thousand employees” working in person—a far cry from a full return to the office.

Such a vertiginous drop in attendance would have signaled serious trouble for Solomon’s campaign, but a Goldman spokesperson provided Fortune with different numbers. Recent in-person attendance at the bank’s HQ has averaged 60% to 70% over the course of a week, the spokesperson said, close to its occupancy last fall before the Omicron shutdown. At the time, some 8,000 workers trekked into the office at least one day a week. The firm did not provide comparable pre-pandemic data, when the numbers were surely higher.

A growing share of employees will likely return to Goldman’s offices as the pandemic subsides. Solomon believes in-person interactions are essential to the bank’s apprenticeship culture. The company’s operating model, which Solomon refers to as “the ecosystem of the firm,” includes hiring some 3,000 new college graduates every year, who learn from experienced bankers and build networks face-to-face. The experience also encourages teamwork, which is central to the firm’s culture. None of that happens, Solomon believes, if remote work becomes the new normal.

The effect of remote and hybrid work on career growth—and on firm performance—remains to be seen. Some of Goldman’s Wall Street rivals, notably JPMorgan Chase and Morgan Stanley, are also taking hard-line stances on bringing employees back to the office. Others, including Citigroup and UBS, believe the pandemic has changed the working world for good, and they view hybrid work as a powerful attraction for top talent.

The verdict on Solomon’s initiative will not be clear for months or perhaps even years. As the war of workplace strategies plays out, office occupancy rates won’t be the numbers to watch. As always, market share, growth, and profit will reveal the winners and losers.
 
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Genie is out of the bottle.

Completely agree. They need to invent a time machine to go back to 2019 to make this feasible.

The thing is for banks like Goldman, the desire to "return to the office" is likely because of its deep ties with the NYC Real Estate market, a market that desperately needs people to start commuting again to support restaurants selling $25+ lunches and encourage people to move back to the cities to create more inflated housing bubbles.

They are going to fight it, but it's hard to see things reverting back to pre-pandemic work environments.
 
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My company was under a lease for the building we were in for 2 or 3 more years.....but we were growing really quickly. The building next to us had just become available. It was bigger, but very dated. The big wigs made the decision to buy it and basically gut the whole thing. They were paying to have two office buildings, while also paying to re-do the inside of the bigger one. We moved in to the newer building and we're there less than a year when covid hit. All that money sunk into a basically brand new building while we were still on the hook for the original building.

It's no surprise to me that they're heavily promoting coming back to the office....in spite of the fact that we proved to be more productive working from home.
 
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Companies could save so much money abandoning expensive real estate plus gasoline savings for their employees.

I am no commercial real estate expert, but I believe that companies get locked into omewhat lengthy multi-year contracts for office space, and it's not as easy as telling the CRE firm to "go fuck itself, we don't need this shit anymore" to walk away. I'd wager that good number of those office leases signed from between 2015-Jan 2020 (before the thought of everything shutting down and WFH being conceivable) are likely due to last until 2023-2025. The cost of hiring lawyers and spending the time to try to get out of those contracts immediately might be higher than it's worth to just try to force everyone to come back and see if they could get the most out of what they're paying for that office space.
 
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It's a strange, new world.

I've worked from home for years and love it. My wife's big boss always wants people in the building although her immediate boss is more flexible.

I have a friend who said she was the happiest she had been at work in years when she worked remotely. Unfortunately, her employer just built a new building and is encouraging everyone to come back.

Another friend worked for a company that let everyone go virtual anywhere in the country. He did tell his boss he would come into the office just so they saved an office space for him.

There is a local CPA firm not far from me who built a big old HQ right before covid hit. This past week was the busiest I've seen their parking lot in 2 years. I'm guessing around 10 cars in a lot built for well over 100.
 
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There is a local CPA firm not far from me who built a big old HQ right before covid hit. This past week was the busiest I've seen their parking lot in 2 years. I'm guessing around 10 cars in a lot built for well over 100.

Silver lining, if they decide that they need to cook the books to try to justify the expense of that HQ, they should have no problems finding someone to do it. 8D
 
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I’ve worked remotely for a number of years. Usually, just traveling to my clients/project sites. Obviously COVID shut that down.

Of course everything went to Zoom/Teams meetings. That’s okay for some scenarios, but sometimes you need to be in the room with the right people and having uninterrupted adult conversations. Nothing better than building personal relationships and being able to look someone in the eye.

Personally, I miss the interaction and would love to be back on-site from time to time. Working, eating, and sleeping in the same area for over 3 years has gotten tedious.

Those of our company that are close to corporate offices are currently not being asked to return before July. They have opened up the offices and made them available for staff who wish to use them or have meetings with those willing to come in.
 
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Companies could save so much money abandoning expensive real estate plus gasoline savings for their employees.

My question is, do you still pay city tax where the office is even if you are working from home?

Not at this point. For 2021, employers were supposed to continue to withhold as if you were working in the office, but you can request to have that money refunded and the cities are supposed to refund it.

2020 is still up in the air and is headed to the Ohio Supreme Court (Buckeye v Kilgore). Big cities obviously don't want to refund this money unless they are required to. State law seems to suggest they don't but its being challenged.
 
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This company has thought outside-the-box to incentivize employees to return to the office:

Company Offers Employees Pods To Masturbate In, Complete With VR Headsets
https://www.iflscience.com/technolo...s-to-masturbate-in-complete-with-vr-headsets/
large-1646309056-a-much-more-futuristic-pod.jpg

A company has taken the unusual step of offering their employees pods to masturbate in while at work as an employee benefit – which is usually things like a dental plan or free coffee.

The Cyprus-based adult website Stripchat installed four pods for its 200 employees and will allow them 30-minute paid breaks during work hours to make use of the pods (aka to jack it). The decision to install the pods was made to help employees cope with the stress of the COVID-19 pandemic. With 200 employees sharing the four pods, they may not have assessed the stress and awkwardness involved in queuing at work for onanism.

The pods, which look like large futuristic balls, are equipped with 4K screens, Oculus Quest VR headsets, tissues, and a comfortable chair to masturbate in. It will also not be BYOL, as lube will be provided by the employer.


Surprisingly, the company is not the first to offer masturbation breaks. Last year, Erika Lust Films, who employs 36 members of staff, began letting staff have 30-minute masturbation breaks, again due to the agitation people were feeling during the pandemic. This company went more low-tech, offering a "masturbation station" rather than a high-tech ball in which you can crank one out.

"With the pandemic and the huge shift in how we live our lives, I began to notice that my employees had become somewhat agitated and were performing with less energy than before," owner Erika Lust said at the time.

"So, knowing that there's only one thing that will make everyone feel good, I've set up a private masturbation station for them to enjoy."

The head of communications at the firm suggested that the break could actually benefit the employer, too.

"Picture this: a team of happy employees with their creative juices flowing and being productive because they've had some time scheduled to make themselves feel good," she said. "A masturbation break at work can result in more focus from your employees, less aggression, more productivity and better teamwork."


With some studies suggesting that orgasms have health benefits ranging from clearing a stuffy nose to reducing prostate cancer risk, these masturbation breaks might have even more effects than just stress relief.
 
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My company was under a lease for the building we were in for 2 or 3 more years.....but we were growing really quickly. The building next to us had just become available. It was bigger, but very dated. The big wigs made the decision to buy it and basically gut the whole thing. They were paying to have two office buildings, while also paying to re-do the inside of the bigger one. We moved in to the newer building and we're there less than a year when covid hit. All that money sunk into a basically brand new building while we were still on the hook for the original building.

It's no surprise to me that they're heavily promoting coming back to the office....in spite of the fact that we proved to be more productive working from home.

Companies could save so much money abandoning expensive real estate plus gasoline savings for their employees.

My brother-in-law has worked for a fairly large finance (credit card) organization in Columbus.
They had three buildings for all the employees to work in, cafeterias, et cetera.
He had spent one day in an office since Covid hit and the company sold at least two of the buildings, because of the money saved.
 
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Making sense of why executives are eager to get employees back in the office
Alex Sherman
https://www.cnbc.com/2022/03/08/ret...tives-are-eager-for-workers-to-come-back.html

KEY POINTS

  • Studies show there's an executive-employee disconnect about returning to the office.
  • Executive excitement about returning to the office may suggest old-school thinking about employment, or it may be an important symbolic step in post-pandemic life.
  • Several large U.S. companies plan to welcome back employees to the office in March and April.
  • "The fact is, corporate America is likely changed forever," one executive said.
After two years, giddy executives appear on the brink of welcoming their workforces back to the office, whether their employees are ready or not.

"I can't tell you how much I am looking forward to being together again," Apple Chief Executive Tim Cook told his employees in a memo last week, outlining his company's April 11 hybrid back-to-work plan.

"I hope everyone is feeling as energized as I am, and that you are looking forward to seeing your colleagues in person again in the weeks ahead," Comcast's NBCUniversal CEO Jeff Shell wrote in a Feb. 22 memo to staff. "This is an exciting time. Our offices are ready for your return across all NBCUniversal locations."

Even President Joe Biden wrote a letter to federal workers this month telling them to show Americans the time is right to go back to work as Covid cases decline following a dramatic surge fueled by the omicron variant. He broadened his message to all Americans in his March 1 State of the Union address.

"It's time for Americans to get back to work and fill our great downtowns again," Biden said. "People working from home can feel safe to begin to return to the office. We're doing that here in the federal government. The vast majority of federal workers will once again work in person."

Yet studies show employees aren't nearly as gung-ho about returning to work.

The Future Forum, developed by workplace-messaging platform Slack, surveyed more than 10,000 workers globally in the summer of 2021 and found an "executive-employee disconnect" with regard to returning to work. Three-quarters of all executives reported they want to work from the office three to five days a week, compared with about one-third of employees. Among executives who have primarily worked completely remotely through the pandemic, 44% said they wanted to come back to the office every day. Just 17% of employees said the same.

Other research suggests employees have been pleasantly surprised by their work-from-home experience and don't want it to end.

There are several causes for the disconnect, said Brian Elliott, the Future Forum's executive leader and Slack senior vice president. Many executives simply aren't experiencing the same lives of their employees and are falling back on an antiquated view of work to make inferences about what's important for a company to flourish, he said.

"Executives have a better setup at work," said Elliott. "They probably have an office with a door. They probably don't have the same child care issues as many employees. The risk that we run, as a society, even in a hybrid-work setting, is executives don't listen to employees looking for flexibility and a real proximity bias sets in among people who are at the office and those that aren't."

While JP Morgan Chase CEO Jamie Dimon said last year remote work "doesn't work for spontaneous idea generation" and erodes culture, Elliott said the data shows hybrid settings allow for better work-life balance while also increasing workers' sense of belonging among the colleagues. Modern technology connects co-workers — including those who may have worked remotely before the pandemic — that levels the playing field among employees. That sense of fairness, not based on face time or who happens to have a chance meeting in an executive-suite elevator, boosts overall work satisfaction, Elliott said.

"The data runs counter to the idea that always being in the office is the best way to foster culture," Elliott said. "Using digital tools is really important to building a culture for people who aren't the average white male executive. Companies that invest in modern tools and in rethinking how they bring people together will do better than those insisting in full-time office work."

Elliott noted that while Slack benefits from work-from-home policies, all Future Forum research was completed independent of the technology company.

Cultural mythology
It's possible the executive-employee disconnect represents a division between what's best for the organization and what's best for the individual, argued Art Markman, a professor of psychology and marketing at the University of Texas at Austin. In an essay for Harvard Business Review, Markman wrote that observing work by others can lead to a phenomenon called goal contagion.

"When you observe the actions of other people, you often adopt their same goals," Markman wrote. "Being around a group of people who are working toward a common mission reinforces that goal in everyone in the workplace."

But several of Markman's assertations — including "the physical workplace enables moments of serendipity that can move projects along" and "it's harder for institutional knowledge to make its way around in a remote environment" — are more fairy tale than reality, Elliott said.

"I've heard so many times from executives about the importance of whiteboarding, but that sentiment is always coming from the person who is controlling the pen in that whiteboard session," Elliott said. "The truth is whiteboarding leads to group think. If you allow people to submit ideas on their own, not in a room with others, studies show you'll get more creativity."

Bringing people back to the office for chance meetings in an elevator or by the water cooler is "mythology," Elliott said. Still, it's possible those interactions are much more valuable to an executive than to an employee — further leading to the disconnect, said Amy Zimmerman, chief people officer at Relay Payments, which has worked with founders and executives to develop and nurture culture.

Older executives rely on face-to-face communication to get a better sense for what's going on throughout their organizations, Zimmerman said. They also may have more need for those chance conversations to keep tabs on a large number of employees, she said.

"I've worked with a CEO who told me he just liked the energy of the office," said Zimmerman. "There was something about seeing the cars in the parking lot that brought him joy. The fact is, corporate America is likely changed forever. You're making a huge mistake if you're requiring folks back in office full time, because they see the progress most companies have made in the last two years, and they'll ask, 'why?' It feels like micromanagement."

Symbolic return
While notions that working from an office improve productivity or idea generation aren't backed up by evidence, executive excitement about returning to work may serve a greater purpose, said Gia Ganesh, vice president of people and culture at Florence Healthcare.

The movement to bring people back to office settings may represent a fundamental human need for socialization, said Ganesh. Executive excitement about returning to offices can optimistically be seen as corporate leaders signaling to employees that it's once again acceptable to return to pre-pandemic life. That's an important step for human and group psychology, said Ganesh.

The fact is, corporate America is likely changed forever. You're making a huge mistake if you require folks back in office full time because they see progress most companies have made in the last two years, and they'll ask, 'why?'

"We work better when we're at home, so why should we have to come into office? Why spend two hours commuting when it's counter-productive? Because during these times of the pandemic, sense of belonging has been broken," Ganesh said. "The workplace enables that sense of belonging."

Like Elliott, Ganesh advocated hybrid work settings become the norm in a post-pandemic world. Just as people worry more about flying even though data shows car crashes are far more likely than plane wrecks, executives may need to retrain themselves to feel OK with this new reality, she said.

"Humans have a need for control," said Ganesh. "As an executive, you feel you have better control and visibility if everyone is in front of you."

While most executives would never admit it, their desire to return to the office may lead to a dip in productivity, said Zimmerman. The question is whether they'll care.

"People can goof off in an office," Zimmerman said. "But many executives I speak with simply miss seeing people."
 
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This company has thought outside-the-box to incentivize employees to return to the office:

Company Offers Employees Pods To Masturbate In, Complete With VR Headsets
https://www.iflscience.com/technolo...s-to-masturbate-in-complete-with-vr-headsets/
large-1646309056-a-much-more-futuristic-pod.jpg

Ah yes if there's one thing my workplace needs, it's a communal masturbation pod.

I can't work from home. But I see no reason why companies are so eager to make their employees' lives more difficult. They're already buttfucking the workers in regards to income. Let them work from home.
 
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