Bosses Push Back on WFH Die-Hards: ‘They Will Need to Show Up’ | Kanebridge News
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Bosses Push Back on WFH Die-Hards: ‘They Will Need to Show Up’

Managers say team productivity has taken a hit as employees stay remote

By GRETCHEN TARRANT
Wed, Jul 12, 2023 8:30amGrey Clock 3 min

Office attendance is slumping again and bosses have a warning: We are a worse company when you stay home.

In buildings across 10 major U.S. cities, office occupancy has fallen back below 50% for the past three weeks, according to Kastle Systems, which tracks security swipes into offices. The drop comes despite new return-to-office mandates that affect more than 600,000 workers and counting.

Hundreds of Wall Street Journal readers—many of them bosses and team leaders—responded to our story on the workers who say “it’s not my responsibility” to save the office economy. These bosses say employees who insist they are more productive while working from home are missing the larger picture: Team productivity is taking a hit.

The purpose of an office is to create a dynamic environment where people feed off one another’s energy, bond on a personal level and explore ideas in unstructured ways, many company leaders said. Remote work can’t provide those kinds of casual interactions that build culture and camaraderie, they say, which means it is worse for the organisation and, in many cases, individual careers, too.

“Team collaboration really is much better and more effective with actual face time. Career growth also,” said William McNamara, a hiring manager who lives in Bellevue, Wash. “Sure, zealots will claim you can do it all remotely, but you can’t do it all as effectively for everyone, remotely.”

Still, work-life balance is a vital piece of company culture—one that workers say is helped by the option to work from home, at least part of the time. That leaves bosses to strike a difficult balance, something they are more keenly aware of than their employees might realise.

“We are stuck. Remote work means remote engagement. In-office means less flexibility,” said John Hayes, founder of Blackney Hayes Architects, a Philadelphia-based firm.

Eavesdropping as education

Bosses say that developing young workers and new hires is a priority, and that it’s tougher and slower to accomplish it when people aren’t gathered together in offices. Structured training sessions can often be conducted via Zoom, but the daily rhythms of mentoring and learning on the job require a less-structured exchange of questions and answers that happen organically.

“Eavesdropping is a huge form of education,” Hayes said. “Hearing what other people are saying, how they’re dealing with problems.”

Blackney Hayes asks employees to do their jobs from the office at least two days a week, but doesn’t mandate the face time because so many workers have said they prize flexibility.

“If leadership and all the energy radiate from the office, then people will understand that if they want to be part of the team they will need to show up,” Hayes said.

Jenny von Podewils, co-chief executive of Leapsome, an HR productivity and engagement platform, has taken a similar approach in the hopes of boosting young workers’ professionalism, such as appropriate conversations with colleagues and how to present in client meetings. Without office time, newer staff members take longer to get up to speed—if they catch up at all.

“Learning doesn’t happen on Zoom calls. It happens during meetings, together, through body language, listening to how people approach certain situations,” she said.

Breakthrough problem-solving

Ad-hoc interactions are important for seasoned employees, too, said Kevin Kowalczuk, a technology product manager based in Franklin, Tenn., who retired in April.

“We could literally make progress on a task while waiting for our coffee cup to fill up or while we heated lunch in the microwave,” he said of his return to the office.

Kowalczuk resolved one of his tougher challenges while chatting with colleagues in the company kitchen last spring. After discussing the housing market, their conversation turned to a new application that was only loading for some users despite being released to hundreds. The group quickly determined the problem stemmed from incorrect group permissions being granted to the users.

“That saved us days of time,” Kowalczuk said.

Team productivity vs. individual output

Individual contributors with task-oriented roles and a clear to-do list can perform satisfactorily in a remote setting in a way that doesn’t work for more strategic roles, said Edward Boggs, an information-technology team lead who lives in Durham, N.C., and goes in five days a week.

“If the tasks they are receiving are of the ‘figure it out’ variety, they often don’t do a very good job, or it takes them much longer than it should,” he said. The critical thinking required for those jobs usually requires a team working through issues in real time, Boggs added.

Working from home introduces other performance-related issues, even for conscientious employees with the best intentions, said Kim McClung, a former vice president of clinic operations for a large medical group, who’s now retired.

Managers who reported to McClung struggled to step back from work. They answered emails and took calls after hours, a habit she said she tried to discourage because it leads to burnout.

“If you’re in the car driving or trying to watch your kid’s recital while you’re answering emails, you’re not giving your best to anyone,” she said. “I don’t want your attention under those circumstances.”

McClung would rather her team work shorter hours together in the office, 100% focused on work, then go home and have true downtime.

When people are “on 24/7, the quality of work is going to suffer,” she said.



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Office owners are struggling with near record-high vacancy rates

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First, the good news for office landlords: A post-Labor Day bump nudged return-to-office rates in mid-September to their highest level since the onset of the pandemic.

Now the bad: Office attendance in big cities is still barely half of what it was in 2019, and company get-tough measures are proving largely ineffective at boosting that rate much higher.

Indeed, a number of forces—from the prospect of more Covid-19 cases in the fall to a weakening economy—could push the return rate into reverse, property owners and city officials say.

More than before, chief executives at blue-chip companies are stepping up efforts to fill their workspace. Facebook parent Meta Platforms, Amazon and JPMorgan Chase are among the companies that have recently vowed to get tougher on employees who don’t show upIn August, Meta told employees they could face disciplinary action if they regularly violate new workplace rules.

But these actions haven’t yet moved the national return rate needle much, and a majority of companies remain content to allow employees to work at least part-time remotely despite the tough talk.

Most employees go into offices during the middle of the week, but floors are sparsely populated on Mondays and Fridays. In Chicago, some September days had a return rate of over 66%. But it was below 30% on Fridays. In New York, it ranges from about 25% to 65%, according to Kastle Systems, which tracks security-card swipes.

Overall, the average return rate in the 10 U.S. cities tracked by Kastle Systems matched the recent high of 50.4% of 2019 levels for the week ended Sept. 20, though it slid a little below half the following week.

The disappointing return rates are another blow to office owners who are struggling with vacancy rates near record highs. The national office average vacancy rose to 19.2% last quarter, just below the historical peak of 19.3% in 1991, according to Moody’s Analytics preliminary third-quarter data.

Business leaders in New York, Detroit, Seattle, Atlanta and Houston interviewed by The Wall Street Journal said they have seen only slight improvements in sidewalk activity and attendance in office buildings since Labor Day.

“It feels a little fuller but at the margins,” said Sandy Baruah, chief executive of the Detroit Regional Chamber, a business group.

Lax enforcement of return-to-office rules is one reason employees feel they can still work from home. At a roundtable business discussion in Houston last week, only one of the 12 companies that attended said it would enforce a return-to-office policy in performance reviews.

“It was clearly a minority opinion that the others shook their heads at,” said Kris Larson, chief executive of Central Houston Inc., a group that promotes business in the city and sponsored the meeting.

Making matters worse, business leaders and city officials say they see more forces at work that could slow the return to office than those that could accelerate it.

Covid-19 cases are up and will likely increase further in the fall and winter months. “If we have to go back to distancing and mask protocols, that really breaks the office culture,” said Kathryn Wylde, head of the business group Partnership for New York City.

Many cities are contending with an increase in homelessness and crime. San Francisco, Philadelphia and Washington, D.C., which are struggling with these problems, are among the lowest return-to-office cities in the Kastle System index.

About 90% of members surveyed by the Seattle Metropolitan Chamber of Commerce said that the city couldn’t recover until homelessness and public safety problems were addressed, said Rachel Smith, chief executive. That is taken into account as companies make decisions about returning to the office and how much space they need, she added.

Cuts in government services and transportation are also taking a toll. Wait times for buses run by Houston’s Park & Ride system, one of the most widely used commuter services, have increased partly because of labor shortages, according to Larson of Central Houston.

The commute “is the remaining most significant barrier” to improving return to office, Larson said.

Some landlords say that businesses will have more leverage in enforcing return-to-office mandates if the economy weakens. There are already signs of such a shift in cities that depend heavily on the technology sector, which has been seeing slowing growth and layoffs.

But a full-fledged recession could hurt office returns if it results in widespread layoffs. “Maybe you get some relief in more employees coming back,” said Dylan Burzinski, an analyst with real-estate analytics firm Green Street. “But if there are fewer of those employees, it’s still a net negative for office.”

The sluggish return-to-office rate is leading many city and business leaders to ask the federal government for help. A group from the Great Lakes Metro Chambers Coalition recently met with elected officials in Washington, D.C., lobbying for incentives for businesses that make commitments to U.S. downtowns.

Baruah, from the Detroit chamber, was among the group. He said the chances of such legislation being passed were low. “We might have to reach crisis proportions first,” he said. “But we’re trying to lay the groundwork now.”

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