The COVID-19 pandemic and subsequent stay-at-home orders in 2020 prompted many office employees to work remotely. This trend has continued due to the current influenza strain and respiratory syncytial virus, making remote work a desirable option for employees. However, bosses are not as keen on this shift.
According to an article by business affairs editor Rachana Shanbhogue in The Economist, employees currently spend an average of one and a half days per week working from home but would like to see that doubled. On the other hand, companies such as Goldman Sachs and Zoom are asking their workers to return to the office more frequently.
Shanbhogue notes that while the traditional five-day-a-week schedule is becoming outdated, it is likely that employers will find a middle ground with their workers when it comes to remote work arrangements. This could mean less flexibility for remote work in some cases.
However, economic factors may also play a role in determining how much remote work is allowed moving forward. If interest rates rise significantly enough during this time of economic recovery from COVID-19 impacts, unemployment rates could increase again which would give employers more bargaining power over their workforce according Shanbhogue’s analysis.
Interestingly enough though there have been concerns about increasing vacancies within commercial properties since 2023 due largely because long-term leases were signed before then; however these fears have yet come true thus far despite headlines claiming otherwise partly because most businesses still need physical space even if they allow some or all staff members continue working remotely part-time or full-time basis depending upon individual needs/preferences/roles/responsibilities/etc..
In fact according metrics provided by Goldman Sachs cited by Shanbhogue:
12% of office leases will be up for renewal in 2024 (more than twice as many compared with those expiring next year)
Remote working arrangements might lead approximately46 million square feet vacant across United States – “equivalent all floor space built last year”
Office buildings that comply with tightening environmental standards will be in high demand; older office structures not so much
Shanbhogue further explains that the COVID-19 pandemic has caused “the biggest shift in professional life for decades,” and its consequences are still being felt throughout corporate hierarchies and the financial system. While the pandemic may have ended, remote work will continue to shape how people work and play, according to Shanbhogue’s analysis.
