The essentials: Does Amazon’s announcement to put an end to teleworking, including in Luxembourg, surprise you?
Ludivine Martin and Laetitia Hauret, researchers at LISER (Luxembourg Institute of Socio-Economic Research): This is not a surprise, because Amazon is not an isolated case. Other multinationals, whose head offices are most often in the United States, have also implemented a return-to-office policy for employees (Apple, X, Disney, etc.). A survey of American CEOs shows a decline in the offer of teleworking between 2022 and 2023. According to the data from this survey, in 2022, if 31% of the companies surveyed required their employees to be 100% face-to-face, this share is increased to 46% in 2023.
Is this decision likely to spill over into the Grand Duchy?
Given the price of real estate, the long travel times between home and work, the recruitment difficulties faced by companies and the investments made by companies to facilitate teleworking, we do not believe that the offer teleworking and, more generally, remote working, risks decreasing in Luxembourg. We will know if this hypothesis is valid thanks to our next survey with partners among companies in Luxembourg and four other European countries.
Which companies could be tempted to follow in Amazon’s footsteps in Luxembourg?
This question is difficult to answer at the moment. But, according to a study carried out among the 500 largest American firms, it appears that large companies, companies with poor stock market performance or those managed by a man who enjoys great power are more inclined to implement a policy back to the office. Conversely, companies specializing in high-tech fields and those whose head office requires long commute times are less favorable.
Do you think that teleworking is experiencing its last hours in the Grand Duchy?
No, for all the reasons mentioned and also because it is a practice that helps retain the workforce and attract talent. A survey carried out across the Atlantic among companies having opted for a return to the office shows that the majority of them regret their choice, because it led to a drop in the morale of their employees, difficulties in hiring and talent loss.
How can we explain this “backtracking”?
Some companies may feel that working from home interferes with interactions between colleagues and hinders their ability to innovate. Others are undoubtedly afraid of losing control over their employees’ working time…
