{"id":10213,"date":"2023-08-19T12:54:12","date_gmt":"2023-08-19T12:54:12","guid":{"rendered":"https:\/\/mysourcefunding.com\/leadership\/the-data-ceos-and-workers-need-to-know\/"},"modified":"2023-08-19T12:54:13","modified_gmt":"2023-08-19T12:54:13","slug":"the-data-ceos-and-workers-need-to-know","status":"publish","type":"post","link":"https:\/\/mysourcefunding.com\/?p=10213","title":{"rendered":"The Data CEOs And Workers Need To Know"},"content":{"rendered":"
\n

Many of America\u2019s big bosses want their employees back in the office ASAP, arguing that sharing a physical workplace makes them more creative and productive. But is that impulse based on good evidence? Or is it just \u201cexecutive nostalgia?\u201d<\/h2>\n

By <\/sub>Jena McGregor<\/sub>, Forbes Staff<\/sub><\/h4>\n

CEOs love data.<\/strong> It drives decisions about pricing, calls about strategy and pivots into new markets. But when it comes to remote work, the chatter in the C-Suite often sounds more like opinion than fact. And <\/strong>many <\/strong>of those execs want to get butts back into seats.<\/p>\n

Last September, for instance, BlackRock CEO Larry Fink, in an interview about reducing inflation, said \u201cI think if we magically had more and more people coming back to the office, I think we would see rising productivity.\u201d Disney CEO Bob Iger, in an email earlier this year calling employees back to the office four days a week, said \u201cnothing can replace the ability to connect, observe, and create with peers that comes from being physically together.\u201d<\/p>\n

JPMorgan Chase CEO Jamie Dimon has been unwavering in his distaste for fully remote work, saying in 2021 that \u201cit does not work for younger people, it doesn\u2019t work for those who want to hustle, it doesn\u2019t work in terms spontaneous idea generation\u201d and \u201cit doesn\u2019t work for culture.\u201d<\/p>\n

Are they right? The truth is it\u2019s still hard to really know. Workplace norms are rapidly shifting. Collaborative software tools are constantly being updated and improved. <\/strong><\/p>\n

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And while fully remote work might be a no-brainer in some jobs and for some employees, it may handicap the work of others. Productivity is notoriously tough to measure for white-collar workers. A lot of existing data hails from self-reported employee surveys or academic research that studies niche worker categories.<\/p>\n

In that absence, says Brian Elliott, who previously led Slack\u2019s Future Forum research consortium and now advises executive teams on flexible work arrangements, many CEOs still have \u201cexecutive nostalgia\u201d about a model that worked for them years ago. \u201cThere\u2019s still this big CEO echo chamber aspect of it,\u201d he says.<\/p>\n

People on both sides have dug in with almost spiritual zeal. Jonathan Levav, a Stanford Graduate School of Business professor who co-authored a widely cited paper finding that videoconferencing hampers idea generation, was surprised by the angry responses he got from remote-work adherents. \u201cIt\u2019s become a religious belief rather than a thoughtful discussion,\u201d he says.<\/p>\n

With that in mind, Forbes<\/em> spoke with academic researchers, corporate advisers and business executives to identify what existing data says\u2014or what their own evidence shows\u2014regarding how remote work really works. While some data may seem to support complaints executives have\u2014that remote work saps productivity, hurts younger workers, lessens creativity or kills corporate culture\u2014other research suggests it does the opposite, converting saved commute times into more work hours, retaining workers with child or eldercare needs who need flexibility and making it easier to build diverse workforces when hiring isn\u2019t constrained by geography. \u201cYou find one study, and you can point to another study that shows otherwise,\u201d Elliott says.<\/p>\n

What is<\/em> clear: Hybrid arrangements seem poised to win out, inexperienced workers are likely more vulnerable to work-from-home\u2019s downsides and employees really, really don\u2019t want to work full-time in the office. Beyond that, the truth, as with most things, is nuanced and \u201chighly context-specific,\u201d says Ethan Bernstein, a Harvard Business School professor. \u201cI find it challenging and disappointing that top leaders are saying I know this will be the case because I know it will be the case. And I think so do their people.\u201d<\/p>\n

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<\/span>Productivity<\/strong><\/h2>\n

When the pandemic first started, CEOs seemed almost astonished by how productive people were working from home. Three years later, they\u2019re sounding a different alarm, saying productivity is falling. (Meta CEO Mark Zuckerberg in 2020: Remote work offers \u201cmore space for long-term thinking\u201d and makes \u201cme happier and more productive at work.\u201d Zuck in 2023: In-person engineers \u201cget more done,\u201d an internal analysis of performance data shows.)<\/p>\n

So which is it? Research can be cherry-picked to point to either result. A recent working paper from Stanford economist Nicholas Bloom, which reviewed existing studies on the topic, caused a stir when it pointed to research showing that fully remote workforces appeared to have reduced productivity of around 10% on average. Yet the review also found that \u201cfor hybrid work\u2014and that\u2019s well-organized hybrid work, which gets lost in a lot of these studies\u2014it looks like [the impact is] flat to slightly positive,\u201d says Bloom.<\/p>\n

Before CEOs start brandishing Bloom\u2019s paper and calling everyone back onsite full-time, however, there\u2019s a lot of subtlety to those numbers. The studies reviewed tend to look at lower-paid workforces doing repetitive tasks that can be objectively measured\u2014like call center agents or data entry workers in India\u2014which may not be generalizable to the workforce at large, Bloom says, noting the studies also looked at a range of management styles. Some reports studied employees during atypical 2020 conditions\u2014when children in virtual school were underfoot or vaccines weren\u2019t yet available\u2014which may have impacted the results, Elliott says.<\/p>\n

And Bloom points out that entirely remote companies would save on real estate and have other built-in advantages, such as lower turnover or access to global (and less costly) employees, balancing out potential declines. \u201cIt\u2019s like saying I\u2019ll never buy a Toyota because a Ferrari will go faster,\u201d Bloom says. \u201cWell, yes, but it\u2019s a third the price. Fully remote work may be 10% less productive, but if it\u2019s 15% cheaper, it\u2019s actually a very profitable thing to do.\u201d<\/p>\n

Meanwhile, even a little bit of in-person time could mean different results. Among a group of remote call center agents who worked in person just one day a week, for instance, an early study by Stanford\u2019s Bloom saw productivity increase 13%. Government patent officers who could work from anywhere but gathered in-person several times a year, Harvard Business School professor Raj Choudhury found, also saw a boost to productivity rates. Another randomized trial of office workers at one firm compared full-time <\/strong>in-person workers to those who were remote twice a week, and found the impact on measures like productivity, performance evaluations or promotions was zero or just slightly positive for the hybrid workers.<\/p>\n

\u201cThe truth is the flexible way of working is going to stick, but it needs new management practices,\u201d says Choudhury, such as gathering for regular offsites or figuring out how to coordinate attendance so people aren\u2019t Zooming alone in the office. \u201cThere\u2019s good hybrid\u2014and there\u2019s terrible hybrid.\u201d<\/p>\n

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<\/span>Creativity<\/strong><\/h2>\n

Like productivity, innovation has become one of management\u2019s most common arguments for office returns, suggesting that bumping into colleagues in hallways or cafeteria lines sparks creativity. News Corp. CEO Robert Thomson said in a January memo, for instance, that \u201cthe spontaneity and serendipity of a dynamic office environment are crucial in creating and in iterating.\u201d<\/p>\n

The problem? Experts say it\u2019s not clear how much random water cooler run-ins spark innovation. Studies have long shown people don\u2019t talk regularly to coworkers who sit more than 30 feet away, even if the opportunity is technically there. And research reviews have shown people are more likely to have more original ideas when not brainstorming as a group.<\/p>\n

Meanwhile, open-office plans\u2014which bosses built to spur worker interactions\u2014may have the opposite effect. Bernstein\u2019s research has shown that instituting an open office decreased<\/em> face-to-face interactions by up to 70%, as workers used headphones, avoided eye contact and followed coworkers\u2019 body language cues. \u201cNorms spread quickly,\u201d he says. \u201cIf you interrupt people, they give you the evil eye.\u201d<\/p>\n

But <\/strong>other studies find that in-person work has creativity advantages. Researchers studied anonymized phone data and found that face-to-face meetings of workers at different firms increased patent citations, suggesting innovation \u201cecosystems\u201d like that in Silicon Valley do make a difference. Levav\u2019s research that drew angry reactions found in an experiment that fully remote teams working on new product designs over videoconferencing tools were less effective than their in-person peers. \u201cPeople’s physical experience affects their cognitive style,\u201d says Levav.<\/p>\n

Once again, hybrid appears to help. In a separate study, Choudhury found that teams who worked together between 25% and 40% of the time had the most novel work output\u2014better results than those who spent less or more time in the office. \u201cBut it didn\u2019t have to be once a week,\u201d Choudhury says, noting workers could gather just a few days each month and see an effect. \u201cThe reality is a vast majority of people now collaborate and work with people all over the country or the world,\u201d he says.<\/strong> \u201cYou can\u2019t co-locate them all.\u201d<\/p>\n

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<\/span>Mentorship<\/strong><\/h2>\n

One of the most common concerns about remote work\u2014and rationales for returning to the office\u2014is its impact on new or <\/strong>younger workers. \u201cFor our youngest members of our workforce, I\u2019m gravely concerned that the loss of early career development opportunities is going to cost us dearly over the decades to come,\u201d Citadel founder and CEO Ken Griffin said in 2021.<\/p>\n

This is one area where concerns seem more universal. In one study of a pre-covid workplace, University of Virginia assistant professor Emma Harrington found that software engineers who sat in the same building as teammates got 22% more feedback on their code than those with teammates based in other buildings. When the pandemic struck and offices closed, the gap in how much feedback the two employee groups received largely disappeared. \u201cIt seems like maybe more junior workers feel more comfortable asking for additional feedback and advice when they are in person,\u201d she says.<\/p>\n

Meanwhile, proximity bias\u2014the idea that being <\/strong>physically near your colleagues is an advantage\u2014persists. A survey of 800 supervisors by the Society for Human Resource Management in 2021, for instance, found that 42% percent said that when assigning tasks, they sometimes forget about remote workers.<\/p>\n

UC Davis professor Kimberly Elsbach has long studied \u201cface-time bias,\u201d or the career advantages of people who work physically present in the office. Her 2010 study found that when people are seen in the office, even when nothing is known about the quality of their work, they are perceived as more reliable and dependable\u2014and if they are seen off-hours, more committed and dedicated\u2014all \u201csubjective trait characteristics\u201d that are tied to career advancement. Unless performance assessments are more objective, Elsbach says, \u201cour study clearly shows that you\u2019re going to be at a disadvantage for these important perceptions.\u201d<\/p>\n

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Still, Elliott notes that while the impact of remote work on less experienced workers is a genuine concern, research like Harrington\u2019s also shows that distributed teams\u2014groups of employees who physically work in an office but in different buildings\u2014can suffer from the <\/strong>same fate. \u201cIt\u2019s not just because it’s potentially harder [to mentor people] remote,\u201d he says. \u201cIt’s because we have lousy systems for mentorship and development in the first place, and especially for younger workers.\u201d<\/p>\n

Being in person, he says, \u201cjust makes it easier for people to fall into habits to help one another.\u201d What most workplaces need are ways to bring people together, at least for training and offsites, as well as better mentorship programs overall: \u201cIf you intentionally structure a process around it, you’re going to get better results, period.\u201d<\/p>\n

<\/span>Culture<\/strong><\/h2>\n

During the pandemic\u2019s early days, as managers fretted about the impact of remote work on corporate culture, many scheduled virtual happy hours or VR-headset game activities that, for many workers, just added to the Zoom fatigue. CEOs have bemoaned the impact on culture: \u201cWhile we have built transactive connection and on-screen skills through COVID, we have lost a true human connection at [headquarters],\u201d then-Starbucks CEO Howard Schultz wrote.<\/p>\n

Corporate culture is a slippery thing, one that defies easy definition. It\u2019s technically a company\u2019s shared norms or values, but many employees think it\u2019s synonymous with work-life balance, or how toxic their boss is, or how many fun perks are available. All of those are tricky to measure.<\/p>\n

One proxy for culture might be how connected people feel to their colleagues\u2014but once again, research is a mixed bag. When Microsoft studied the work habits of some 60,000 employees before and after the shift to work from home\u2014comparing emails, video calls, calendars and other digital communications\u2014it found the share of time they spent collaborating with teams in other parts of the company dropped by about 25%. Separately, researchers from MIT analyzed traffic in the school\u2019s email network and found that communication between different research units dropped amid the pandemic move to remote work, resulting in fewer \u201cweak ties.\u201d They improved when hybrid work began again.<\/p>\n

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But many people and a number of companies that have stuck with remote arrangements say it\u2019s helped or had no impact on culture. In a quarterly survey by Slack earlier this year of more than 10,000 knowledge workers, those who worked remote or hybrid were 57% more likely than people who worked onsite full-time to say their culture has improved over the past two years. The review platform Yelp, which has closed all but one of its U.S. locations, released a breakdown of its data in February finding no significant change in the percentage of new employees who said they felt connected to their teams between 2019 (95%) and 2022 (94%).<\/p>\n

And the software firm Atlassian, where there are no in-office mandates and 40% of employees <\/strong>live <\/strong>more than two hours away from an office, ran an analysis to see how often remote workers needed to come together to feel more connected. What it found: Internal surveys showed that remote employees who got together for in-person team gatherings had a 27% increase in how connected they felt; the surveys suggested three times a year was the best frequency for preventing a loss of that connectedness. Regular office attendees did not see a boost in their connection scores in internal surveys.<\/p>\n

Says Annie Dean, whose title is \u201chead of team anywhere\u201d at Atlassian: \u201cFor whatever reason, we keep making where<\/em> we work the lightning rod, when how we work is the thing that is in crisis.\u201d<\/p>\n

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<\/h4>\n

MORE FROM FORBES<\/strong><\/h4>\n<\/div>\n

Read the full article here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Many of America\u2019s big bosses want their employees back in the office ASAP, arguing that sharing a physical workplace makes them more creative and productive. But is that impulse based on good evidence? Or is it just \u201cexecutive nostalgia?\u201d By Jena McGregor, Forbes Staff CEOs love data. It drives decisions about pricing, calls about strategy […]<\/p>\n","protected":false},"author":1,"featured_media":10214,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"content-type":"","footnotes":""},"categories":[76],"tags":[],"class_list":{"0":"post-10213","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-leadership"},"yoast_head":"\nThe Data CEOs And Workers Need To Know | Brandiary<\/title>\n<meta name=\"description\" content=\"Many of America\u2019s big bosses want their employees back in the office ASAP, arguing that sharing a physical workplace makes them more creative and\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/mysourcefunding.com\/?p=10213\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" 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