Defeated CEOs are now conceding hybrid working is here to stay
Defeated CEOs are now conceding hybrid working is here to stay
Last year, 62% said they expected a full-time return to the office, but KPMG's data shows they're backtracking.
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Did we actually believe any of them at the time? I think they already knew that remote work was going to continue, and they were trying to get as much money out of the transition as possible.
One problem was that they had wasted real estate, and they had to justify it to shareholders. So they pretended that they were going to bring everyone back to the office.
If you think about it from a medium run perspective, of course employers are going to want more remote work because then they don't have to pay for utilities or parking or rent or buildings. Of course this depends on the exact setup, but for many businesses it was clear from the beginning of the pandemic where things were going to go. And if we want to get even more cynical, we can point out that when your labor pool spans the country or even the world, you have a greater ability to underpay employees.
They want remote work so they can get the cheapest labor. Be on guard for average salaries to start dropping.
I've been outsourced more than once, while working in an office.
You guys are getting paid at your job?
If you can do your job from home and your job can be taught under 5 years. Then 5 indians guys can do it together for 10 times less total than you cost. And that will be the case until what happenned to China happens to India, which should take roughly 40 years.
We found this to be NOT true. Half, at best. But wait.
So it's 1/10 in its heyday, but when you pay someone 1/10th salary in a land of 1/50th salary, that person becomes a target. They look comparatively rich, their house gets repaired, their kids show the signs of an economic bump, etc. So now your guy can get robbed or kidnapped, so you need a driver and protection. And the kids need to go to a different school with a gate. And the spouse needs to get back and forth safely. And then a better house, moving to a gated community or apartment, with more guards. And suddenly you're paying for company housing, schooling, cars, drivers, tutors, guards, cameras/surveillance, cooks, maids, deliveries, and even extended family is moving in for safety.
So it's still a bargain on paper, but then it's just half. They don't mention this because it's hard to sell an idea when 80% of it is eroded.
Your employee or team now works on the other side of the world, with a different culture and management style from what you're used to with Americans, different communications and workflow, and everything's still around the world so it's a day's delay for everything.
The culture and work environment has trained some regions to NEVER admit they don't know something; just nod, smile, and try to figure it out with confidence. Dunning-kruger be damned, sometimes that's not a good way to do something in my field, which is incredibly technical. We can't even educate the locals on risks of bad supply chains (curl|sh anyone? Flatpacks and CPAN and NPM and composer? Find out why these are risks) and doing so with the different "never say you don't understand or you're fired" environment is an added challenge. "Did you check for compliance?" will only ever get a "Yes", even if you don't mention which standard.
So your management - especially in offshores - needs an entirely different mindset and workflow, and you need to have people to check on the compliance and readiness and completeness who will say when it's not ready because they're not gonna be fired for it. This kind of thing surprised us and it will surprise the "I just wanna save money and this guy said 1/10th! " crowd. It's not "you get what you pay for", so don't misunderstand; it's just different. And if you can cope with all the differences and don't freak out that you're not saving so much for same-same work, it's ... an idea. In my case, the offshored staff slowly shrunk until we moved the offshoring to Poland.