Less CEOs prioritizing return-to-office in 2024: Survey

Mon, Jan 29, 2024, 10:25 AM

Fewer CEOs are spearheading return-to-office initiatives in 2024 as compared to last year, according to a survey from the Conference Board.

Yahoo Finance Columnist Kerry Hannon details corporate sentiments on allowing hybrid work setups and the leverage skilled workers have in negotiating.

For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.

Editor's note: This article was written by Luke Carberry Mogan.

Video Transcript

[AUDIO LOGO]

RACHELLE AKUFFO: Labor shortages subsiding, but still top of mind. Just 4% of CEOs are making return to office a top priority in 2024, that's according to a recent survey by the Conference Board. So where do we stand with the state of remote work right now because it seems kind of messy. Yahoo Finance contributor Kerry Hannon is here to tell us.

So Kerry, we have a lot of data behind us now. What have we learned about the return to office and remote work and how CEOs are handling this.

KERRY HANNON: Oh my goodness. Thanks, Rachelle. This is really-- I mean, it is just messy. Like you said, there's on one hand on the other hand. So we have these CEOs saying, hey, you know, it's not our number one priority this year. Just a tiny percentage, as you mention, say it is their big percentage-- their big priority is to hire and retain workers. And that is the truth.

Like even how the job market is today is still a tight hiring market and it's imperative that they make it really attractive to want to work at their company. So although we're hearing all kinds of noise on the other hand, right, you know, a lot of the big corporations have said they're getting-- they're cracking down on getting people back in the office, they're checking their swipes when they come in the door, and it's concerning.

But in fact, what they're really-- they're not really saying five days a week, they're saying more like three days a week. And what do we call that? We call that hybrid working. And so in my opinion, you know, hybrid work is here to stay. The genie is out of the bottle. There are two studies that came out from the University of Pittsburgh that found that, in fact, you know, it doesn't-- remote workers don't ding productivity at all.

And so did the Federal Reserve Bank of San Francisco, they couldn't find evidence that people working at home hurt productivity or even helped it. It was just a no-- you know, it's a game, a zero game here.

And so the thing about the University of Pittsburgh one though, is they found that even though it didn't hurt productivity and performance, it did hurt job satisfaction. And that's something employers do not want to have happen because it's imperative that they retain workers and keep them happy. So I think we're seeing this really delicate dance about how do we make this work so everybody is happy.

AKIKO FUJITA: Kerry, what does it mean for companies that are hiring? You know, for years since the pandemic, we've been talking about who holds the leverage. That employers or employees, in many ways, had a little more negotiating power because the companies needed to fill those roles. Who has a little more power right now when it comes to flexibility or asking for flexibility?

KERRY HANNON: Yeah, Akiko, that's a good question. I think it is evened out a bit, but I do think workers still have some-- if you are a knowledge worker and you're a white collar worker and you've got the experience and the skills, I think you have leverage. If you are attractive to that company and you can provide something that they are having trouble getting someone to do, you are attractive to them, as is retaining you.

Now, I have to add here, though, you know, other studies have been coming out that give us a murkier look at this. They say that, you know, company hiring managers, and managers say you know the people are working remotely, they're not getting promoted as quickly. They're not getting paid as much as those who come in the office.

And in fact, they're more likely to be the ones that are lopped off if there's a layoff because they don't have this personal eyeballing relationship with someone. So it's easier to-- they're expendable in a way because there isn't that personal relationship of being in the office with someone. So those are some dangers, some red flags workers need to think about.

But I want to add one more thing, and I've talked to a lot of workers out there right now. And the younger workers really do actually want to come in the office a lot of them, and particularly when they're starting a new job and a lot of even older employees who are starting at a new job.

And we've seen a lot of career transitions, new movement in the job market that they, in fact, really do want to come in to learn the ropes, to make connections, to build their network, and actually learn a little bit about the mission of their employer. So I think we're seeing some interesting trends still perking up. Nothing-- nothing is set in stone at this point.

RACHELLE AKUFFO: Nothing's set in stone indeed. Appreciate you breaking that down for us. Yahoo Finance reporter Kerry Hannon. Thank you so much.

KERRY HANNON: Thanks, Rachelle.

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