End of remote work at Amazon: what are the consequences?

End of remote work at Amazon: what are the consequences?
End of remote work at Amazon: what are the consequences?

A contribution by Kate Wieczorek for Forbes US – translated by Flora Lucas

Amazon CEO Andy Jassy recently announced an in-office policy, requiring all employees to work in the office five days a week starting January 2, 2025. Unlike 71% of U.S. companies that offer flexibility with hybrid work, Amazon’s move is believed to be a cost-cutting effort, avoiding losses from firing employees who choose to resign on their own. Whatever the reason, here are three things to plan for if you’re moving from a remote to an in-office work environment.

Difficulty recruiting the best talent

The lack of remote work opportunities makes the talent pool for future vacancies dependent on geography. Skills and workplace are not always a good match. According to a study carried out in January 2024 by the Society for Human Resources Management (SHRM), 77% of 2,366 human resources professionals reported difficulty recruiting for full-time positions, citing lack of skills as one of the main factors. Inflexible workplace policies will only exacerbate these problems, making the hiring process even more complex.

According to a study by FlexJobs, the average remote worker saves $6,000 per year in transportation, child care and other costs related to working in the office, and 29% of hybrid and remote workers expect to a pay increase if they are no longer able to work remotely. Companies should expect higher salary negotiations, relocation bonuses, and raise requests for corporate jobs than for remote jobs.

Companies that eliminate remote work should expect a decline in the number and quality of candidates. Top talent knows their worth and deliberately chooses environments that allow them to thrive. They look for opportunities where communication, trust and autonomy are permanent. High performers won’t work for companies that measure success based solely on visual proximity.

Decrease in productivity

Any organizational change is accompanied by an initial drop in performance. Many companies never move out of the resistance phase of a change, with 70% of organizational changes failing. Communicating the data and rationale for a change is an essential step in successfully implementing a change, but most companies fail to take this step and never regain productivity.

Andy Jassy said in his letter to Amazon employees that the reason for returning to the office full-time is “to be in a better position” to connect with employees and culture. It does not specify how remote work has failed in this regard and does not explain why the policy of banning remote work would be the best solution. Employees who are told a decision they do not approve of or who are not given acceptable “reasons” will not be encouraged to work. When Amazon decided earlier this year to work three days in the office, more than 30,000 employees signed a petition calling for the decision to be reversed, as well as letters requesting the data supporting the decision to return to work. desk.

Studies continue to show that remote employees are more productive, even when they’re sick. Companies that mandate a return to the office should expect an increase in sick leave, both for mental and physical health reasons. The process of taking time off for personal reasons, such as daycare and appointments, will create bottlenecks and disruptions to the workday. Even time spent moving from one conference room to another, or easily leaving one Zoom meeting to join another, will impact individuals’ workflow and productivity.

Weakened trust in leadership

With only 23% of employees trusting their leaders, it is imperative that companies make large-scale decisions that build trust, not hinder it. Requiring employees to leave their home office and enter a shared office space sends a clear message: Management doesn’t trust you until we see you. Individuals will lose confidence in the decision-making abilities of their company’s leaders if organizational changes negatively impact the majority of the workforce. Loss of confidence in management will quickly result in a loss of interest in working in the company, either by leaving or by a “quiet resignation”.

High achievers question the status quo and bring new ideas. This type of person is not interested in a distrustful and rigid workplace. Companies should conduct a thorough self-assessment and listen to their employees before making organizational changes. You don’t solve a cultural problem by forcing people to leave their home office for an assigned seat in an open-plan office.


Also read: Amazon imposes a return to the office full-time, defying the trend of flexible working in tech

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