Marko Marković
Many business leaders advocate for returning to office work, emphasizing the importance of physical presence for better communication, teamwork, and the long-term success of the company...
Marko Marković
Partner
In recent years, working from home has become widely accepted, offering employees the flexibility and comfort of working from their homes. This trend initially emerged as a response from companies to the strict COVID-19 measures implemented in most countries worldwide.
The logical response from companies was to accelerate the development of infrastructure that would allow most employees to work from home. Over time, this way of working became appealing to companies due to lower operational costs and employees, especially younger ones, who often seek additional flexibility from their employers. It's easy to admit that staying at home, in pajamas, with a cup of home-brewed coffee, and completing work tasks in a familiar environment sounds tempting. But is everything as great as it seems at first glance?
Criticism of this trend is becoming more common, particularly among leading managers and business leaders. Elon Musk, CEO of Tesla, has openly expressed his stance against working from home, calling it "unproductive" and detrimental to company culture.
One of the critical arguments against working from home is the loss of productivity. Elon Musk recently stated that working from home "is not how a company like Tesla can function." He says being present in the office boosts productivity and facilitates more accessible and faster employee communication.
In a company like Tesla, where innovation and speed are crucial success factors, Musk believes that working from home slows down decision-making and the implementation of new ideas.
Jamie Dimon, CEO of JPMorgan Chase, shares a similar view, who emphasized that working from home "is not for everyone." He believes that working in the office enables better collaboration, mentorship, and quicker problem-solving. Dimon holds that an office-based work culture is key to long-term success, especially in industries where creativity and teamwork are essential.
Besides the loss of productivity, working from home negatively impacts company culture. Team spirit weakens without physical interaction among employees, and the sense of belonging diminishes. The office is not just a place of work; it's a space where interpersonal relationships develop, team values are built, and a shared vision is created. Without this element, a company loses its identity and faces long-term consequences. A company comprises people as a group, not individuals, and their collective work and company culture are crucial differentiators in the market.
There is also the significant issue of control and oversight. Managers often point out that monitoring employees' work is hard when they're out of the office. The lack of physical presence can lead to decreased responsibility and discipline among workers, which ultimately undermines the quality of work. Although there are tools for remote work monitoring, they can only partially replace personal interaction and direct supervision.
David Solomon, CEO of Goldman Sachs, strongly opposes working from home. He stated that working from home is "an anomaly that will soon be corrected." Solomon believes that physical presence in the office is essential for maintaining a high work ethic and quick responses to market changes.
On the other hand, working from home has its advantages. Employees who work from home often cite flexibility as one of the most significant benefits. The ability to organize their time without the daily commute leads to a better balance between work and personal life. This flexibility often results in higher employee satisfaction and less stress, which can positively impact their long-term productivity.
Additionally, working from home allows companies to cut costs. Reduced need for office space, lower energy bills, and decreased maintenance costs can represent significant savings, especially for large corporations. Furthermore, companies can access a broader talent pool, hiring employees from different geographic locations without needing to relocate them.
One of the key arguments in favor of working from home is the protection of employees' health. The COVID-19 pandemic highlighted the importance of providing employees with safe working conditions. Working from home reduces the risk of spreading infections and allows employees to work in a safe and controlled environment.
Considering all these arguments, it's clear that working from home has pros and cons. However, the critical question arises: what is best for the company and its employees?
In a broader context, working from home can be unfair to specific groups of employees. For example, employees who do not have suitable conditions at home, such as a quiet workspace or a stable internet connection, may be disadvantaged compared to those who do. Moreover, working from home is not fair to categories of workers who must be physically present, such as bus drivers, retail workers, and front desk staff.
Additionally, working from home leads to social isolation, which can negatively impact employees' mental health. Socialization today, where online communication has already taken up an excessively large space compared to direct social contact, creates a generation of socially deprived people in the long term. Social intelligence cannot develop outside of a group or online; direct contact is necessary.
Work should remain work, and home should stay home. Separating these two spaces is key to long-term success and balance in employees' lives. The only justified reason for working from home could be the globalization of resources—when companies hire experts from different parts of the world, where physical presence would be impossible or impractical. Everything else goes against the nature of work and the interaction needed to create a healthy, productive, and cohesive work environment.
Ultimately, a company's success depends not solely on its physical presence in the office but also on its ability to adapt to changes and create an environment where all employees are motivated to give their best, regardless of where they work.
However, working in the office remains irreplaceable in terms of culture, productivity, and maintaining high work standards.
It's clear that the new era brings changes, and many of them must be adapted to, but there should be no compromise on actual traditional values like company culture, social contact, and work productivity, no matter how outdated they may seem at first glance.
The sound of music from a vinyl record cannot be replaced; it took us over 20 years to realize that. We quickly retrieved the records from the basement and returned them to the shelves, but it won't be as easy with companies that go in the will dir more challenging.