Power Is Shifting Away From Employees: Can Remote Work Survive?

In the last couple years, employees have made some great strides in terms of flexibility, pay and quality of life—but that may be ending. Historically low levels of unemployment, employers needing to hire and the reality of the talent revolution have meant that employees could demand more. From remote working to enhanced benefits and better pay, employee expectations have increased, and organizations have largely risen to the new levels of demand.

But all that may be changing.

As the economy tightens and companies announce layoffs, employees are becoming concerned about job security. The power is shifting from employees to organizations, and this will be an acid test of company culture and values. Will employers (still) offer flexibility, perks, pay and programs? Will they (still) invest in cultures which put people first?

Layoffs Fuel Concerns

People are concerned, and job security is tumbling. Research by Conductor found searches for “mass layoffs” increased by 1000% since last year while “company layoffs” searches increased by 650% and “workforce reduction” searches increased by 50%.

Despite a better-than-expected July jobs report, concerns seem to be justified. Inflation, potential recession and company announcements about layoffs continue to dominate the news cycle. From Microsoft, Hootsuite, Oracle, Snap and Shopify to Ford, JP Morgan Chase, Walmart and iRobot, companies have been announcing layoffs steadily over the last couple months.

Adjusting Expectations

One of the boons of high unemployment for employees has been the ability to demand a better work experience, and—in particular—more flexibility in where, how, when and how much they work. The big question will be whether this hybrid work and remote work will survive a tightening of the labor market.

In reality, employees may need to adjust their expectations for flexible working, but companies who reconsider levels of flexibility should do so with clarity about the implications.

Flexible Work Is Good for People and Organizations

While companies may want workers in the office more often and for more hours, it’s also important to realize that hybrid and remote work have brought terrific benefits for both employees and employers.

Engagement and Investment. When employees have more choice and autonomy, they tend to be more motivated and engaged. In addition, when employees have a couple days a week with more flexibility for their schedule, they may invest themselves more fully at the office, but also when they are flexing their hours and working—wherever.

Reduced Stress and Increased Focus. More options for remote work and hybrid work may also reduce stress for employees. Having a day when the commute is unnecessary provides more time for exercise, doctor appointments or supporting kids activities—and when employees have more time for all the things, and their stress is reduced—and greater focus on work is possible.

Trust and Culture. In addition, when companies offer people more flexibility, they send a message they trust people and recognize their lives are multi-faceted—and they contribute to greater talent attraction and retention as a result. When people receive more, they tend to give more in return, so when companies offer options for employees, people are more likely to feel more positively toward the organization and give greater discretionary effort.t

Hybrid Work is a Both-And

The debate over whether remote work or in-office work is better misses the point that both have value and the best choice may be to offer a mix. At its best, hybrid work is a both-and option—rather than an either-or choice.

Just as remote work and flexibility have advantages, being in the office is also positive. When employees spend some time in the office, they have the opportunity to connect with mentors and colleagues, to be reminded—perhaps more powerfully—of how their work matters to their teammates and to the bigger picture of their company’s contribution to society. Being in the office can also help with innovation, problem solving and a general sense of emotional contagion which comes from working side-by-side with others who are investing in shared goals.

It’s also fair that organizations and employees strike a balance. When employers provide pay and benefits and fair working conditions, it’s appropriate to have expectations of employees making substantive contributions and bringing their best. And employees expect and deserve companies to have their best interests at heart and to do the right thing for employees as well.

Work Experience Matters

When companies have more power, it will be critical they provide positive work experiences in the form of meaningful work, flexibility and updated workplaces (after all, work has changed, workplaces should as well). Companies will need to continue their commitments to diversity, equity, inclusion and fairness. They will want to maintain a focus on employee wellbeing. And they should continue to develop leaders who manage in new ways and go beyond engaging people to inspiring them.

In a worst-case scenario, shifts in power away from employees and toward employers could bode badly for worker experience—but hopefully the lessons of the last couple years and the focus on better work for employees will remain—no matter what the job market.