Is Tide Turning on Remote Work?

Editorial

It was an announcement that reverberated through workplaces across the country — and in cities large and small as well.

In September, Amazon President and CEO Andy Jassy informed tens of thousands of workers that they will be back in the office five days a week come January.

In the ongoing discussion about remote work and the future of work, this is a huge development. Indeed, it is seen by many as an important milestone in this debate, a moment in time when the pendulum started shifting back to the way things were before everyone packed up to go home in March 2020.

But while Amazon’s move will be closely watched and undoubtedly emulated by other employers, we’re not sure if businesses large and small will ever be able to get the toothpaste back in the tube and get everyone back in the office. Remote work has in many ways become a perk, a recruiting tool, a way to keep employees, especially the younger generations, content.

So much so, in fact, that employees that follow Amazon’s lead may be putting themselves at risk when it comes to attracting and retaining talent.

Getting back to Amazon’s statement decision, this is the one that office-building owners, mayors, and economic-development leaders had been waiting for. Those in the real-estate sector have been saying for years now that companies large and small would eventually decide that the improved collaboration and communication, as well as the learning opportunities that come when everyone is together as opposed to on Zoom, would outweigh any benefits that might come from remote work and hybrid schedules. Amazon’s move gives some credence to those arguments and the hope that the struggling office market will improve.

Meanwhile, municipal leaders who had been decrying the loss of foot traffic during the week due to remote work saw the Amazon decision as progress in their mostly unsuccessful efforts to get people back in downtown office buildings.

And Amazon’s decision comes amid mounting evidence of a changing mood when it comes to remote work. A recent survey by the consulting firm KPMG revealed that 79% of U.S. chief executives plan to resume largely in-office work within the next three years, up from 62% a year ago.

That statistic comes amid growing sentiment that the balance of power is shifting in the workplace from employees — who had firm control during the prolonged workforce crisis that gripped every sector of the economy — to employers, many of whom have been eager to bring employees back to the office.

Despite this shift, and Amazon’s landmark decision, we believe that it will remain challenging for employers to bring their workers back five days a week. Remote work has become a fixture, if you will, at many local businesses, from banks to law firms to health-insurance companies.

If there is a shift, it will likely be toward more days in the office — from two to three or even four. This will help build foot traffic in cities while also keeping businesses from shrinking their overall office footprints.

Overall, the tide is probably turning, but until it turns more — and companies bringing people back to the office are not left at a competitive disadvantage — we see many businesses maintaining the status quo.