Thread regarding USAA layoffs

The workplace has finally reached a new normal, says the guru of remote work: Return to office data is as ‘flat as a pancake’

That data tells Bloom that at this point, at the end of summer 2023, after years of false starts to return to office, the workplace is firmly in the “new normal.” He doesn’t expect any more big changes coming down the pike, he said, also pointing to WFH Research data: In the U.S., the share of hours worked from home each week has kept mostly stable at 25% since 2021. Pre-pandemic, it was about 5%.

Bosses are holding their breath that another big change might come post-Labor Day—the fourth since lockdowns began—which has been heralded as the official line in the sand for an office return each year. Bloom predicts otherwise, based on simple historical data.
“It feels like the [score of the] last three years has been, Work from home—three; return to office—zero,” he said. “This is not a match that RTO is winning.”

Like a ‘Nike swoosh’

Bloom, who has been conducting research on remote work for two decades, said that workers were essentially either fully remote or fully in the office before the pandemic. The ability to work remotely on a hybrid basis has only become more commonplace since the pandemic popularized it and most workers realized it can create a perfect balance. Bloom characterized it as having hockey stick growth, like a “Nike swoosh”.

Granted, he added, many news outlets have reported on companies mandating office returns—for real this time, they insist—in the lead-up to Labor Day. But Bloom isn’t convinced those plans, which affect millions of workers, hold any water. “We can debate how [real the plans are] in theory versus practice,” he said. “There have to be other firms heading out. I talk to literally hundreds of firms and managers, and some are coming in. Some are going out. On average, they’re about flat.”

One company whose RTO plan made headlines is Zoom, the ubiquitous videoconference firm and clear pandemic winner. But Bloom thinks its office usage is unlikely to materially shift. “I went for lunch with [Zoom CEO] Eric Yuan about a year ago, and asked what the plan was,” he recalled. “He said, basically, 'People are hybrid. We are hybrid.'"' Eric announced formally that people will come to the office, but just two days a week if they live within 50 miles.”

Hybrid has proven to work—but only if it’s organized. It has long been made clear, Bloom said during the webinar, that workers prefer carrying out administrative tasks and independent work that calls for deep thinking at home, while the office is the clear favorite for collaborative, creative work. Ideally, a company that’s insistent on fostering an in-person community can clearly denote office days for given teams, ensuring that nobody shows up only having to Zoom all day.

A company’s disaster scenario, Bloom said, is paying for an office and paying really high salaries for people in major U.S. cities, and those offices remaining empty. If the past three Labor Days have shown anything, it’s that making demands or threats about showing up are overwhelmingly likely to fall flat—flat as a pancake.
https://www.aol.com/finance/workplace-finally-reached-normal-says-195734497.html

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| 1251 views | | 5 replies (last August 23, 2023) | Reply
Post ID: @OP+1oeJCbSU

5 replies (most recent on top)

What stupid logic “to save corp real estate”? Sounds to me like corp real estate was a bad investment and has become obsolete! Technology has evolved for more efficiency! Should we also bring back travel by horse?

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Post ID: @1ryl+1oeJCbSU

I am in the group of people who was hired on at USAA as fully remote, only to have the rug pulled out from me a few months ago as the company reneged and essentially said "lol jk, u gotta commute cuz culture."

Let me preface this by saying: Fu-k Wayne, Tamla, and every other leader involved in making and enforcing this decision.

Now that that's out of the way, I also recognize the greater "macro" trend and problem that's going on here. Before March of 2020, basically everyone went somewhere to work. Work could mean a store, a hospital, a job site, an office, etc. COVID forced the entire country/world to recognize that remote work is not just possible, it's preferable for most people and provides them too many benefits to list. Leaders recognized this because most of them, if they are being honest with themselves, enjoyed those same benefits.

Herein lies the major problem: An unbelievably large part of the US economy relies on commercial real estate. Think about every office building, car dealership, restaurant, grocery store, hospital, and other non-residential building you see as you go about your daily errands. Every single one of those buildings depends on having warm bodies in them to justify their existence. Our entire economy is built around people moving about from home to work, work to home, with stops along the way for coffee, donuts, grabbing groceries after work, stopping for a beer/food at the local bar.

Company A takes out a loan from Big Bank to build a new office building, expecting companies B, C, and D to lease office space in this new building. Company A needs them to be leased so they can pay their loan back to Big Bank and make a profit.

If companies B, C, and D don't need office space anymore because their employees are working remotely, Company A can't pay back their loans and Big Bank isn't going to be happy about that.

So what is to be done? If everyone is working remotely, most office buildings simply don't need to exist. At all. So it raises many hard questions. Do they get torn down? Who pays for that? What happens to the loans on those office buildings? Do the banks foreclose on the buildings? If they do, then what happens to them? Companies don't need office space anymore, so even if they do foreclose, no one is going to lease or buy them.

Companies like BlackRock and the big banks are the ones who hold the real power in the United States. It's not "We the People," it's not the President, it's not Congress. These giant corporations whose sole purpose is to do everything in their power to make this quarter's profits higher than last quarter's profits are the ones in charge. They are the reason remote work is being systematically done away with. They are the ones who call the shots.

If people are working from home, they aren't in the office buildings that the banks own.
If people aren't in the buildings, companies don't need to pay for office space anymore.
If companies don't need office space, those buildings suddenly don't produce cash flow.
If those buildings aren't producing cash flow, they can't be paid off.
If those buildings can't be paid off, the banks aren't making money.
If the banks aren't making money, well... that's just not an option.

You and I Do. Not. Matter. Not in this system. Everything is about enriching those on Wall Street and ensuring that they don't lose money. Wayne and all of his peer CEOs are nothing more than useful id--ts for the real puppet masters. They'll say it's for culture, they'll say it's about togetherness, they'll say whatever they need to say to pull the wool over your eyes and keep you docile. If tomorrow it's discovered that there's more money to be made if everyone was at home, that's what would happen. They'd say it's for "safety," they'd say it's for "building strong, healthy home lives," or whatever phrase a focus group liked the most.

USAA is in a slightly different scenario because we don't lease our building. It does, however, have an enormous footprint. What is to be done with 9800 Fredericksburg Road if the vast majority of employees are working remotely forever? It's not like it could be easily sold, because who would buy it? No other company in San Antonio needs that much office space, and tearing it down would cost an enormous amount of money.

It's a no-win scenario as a CEO. Once you sell or otherwise get rid of the building, there's no going back. That basically leaves two options:

  1. You can let it sit empty and pay the millions of dollars per year on upkeep in perpetuity. This pi---s off the BoD, local city leaders, and businesses that rely on foot traffic from the tens of thousands of USAA employees who (used to) frequent them every day.
  2. You can force everyone back into the building to justify its existence because change is too hard for your old brain to handle. This pi---s off the overwhelming majority of the employee base.

Either way, the choice ultimately boils down to "Do we value entities (government, corporations) or individuals/families more?"

We all know which one Wayne ultimately chose.

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Post ID: @eqb+1oeJCbSU

They actually want more attrition, which is why they are not changing the RTO policy. If they can get people to quit on their own, they do not have to pay severance pay.

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Post ID: @poi+1oeJCbSU

The powers that be have stated clearly that they don't care.

Our Chief HR Officer just said they have no plans to change RTO days AND attrition impact due to RTO has been minimal so far. Until they see more people leave and say RTO is the reason, they don't plan on changing anything.

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Post ID: @wry+1oeJCbSU

“ A company’s disaster scenario, Bloom said, is paying for an office and paying really high salaries for people in major U.S. cities, and those offices remaining empty. If the past three Labor Days have shown anything, it’s that making demands or threats about showing up are overwhelmingly likely to fall flat—flat as a pancake.”

The powers that be need to take note of this.

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Post ID: @cml+1oeJCbSU

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