Remote Work Is An Incentive For Talent – And Could Even Counteract Inflation

Remote work is here to stay. The topic has been on everyone’s lips and is of concern to entrepreneurs and employees alike, not just since the corona pandemic subsided. Is there a return to the old working world or a radical upheaval? Which is the best solution? Are hybrid solutions any good?

The principle of remote working has picked up speed due to the corona pandemic and is perceived as a positive development, especially by employees. In a McKinsey survey, 60% of 25,000 US workers surveyed said they could work from home at least once a week. 87% of those offered remote work took the opportunity and now work an average of three days from their home office.

Use Individual Experiences

The changes in the world of work are massive. What this massive change strategically means for entrepreneurs and their executives must always be determined individually. There is no cross-industry “one-size-fits-all” solution; it is more critical to optimally prepare decision-makers for which solution (remote, hybrid, office presence) is best for their teams.

Great talent comes from everywhere and is everywhere. However, companies must strive to find them and create an open and inclusive environment for remote workers. If the rest of the team is in the office 9-5, 5 days a week, and hires someone who is based in another country, for example – what framework should be put in place to make the new hire feel like a valued, equal member of the team feel So it depends above all on the respective business model, the existing structures and, above all, on the changes that have already been introduced during the pandemic. In addition, there are modern management methods such as OKR and tools such as teams, Slack, or Zoom. But above all, it requires the right mindset of managers and their employees: a transparent flow of information and personal contact – analog or virtual. It shouldn’t be about control but team spirit: Do I feel part of my company?

Also Read: Home Office: How Companies Develop Sustainable Concepts

Miracle Cure For Inflation?

Old structures can be broken up with creative processes to create a sustainable work reality for employees.

However, some employers are still skeptical about this aspect of the new world of work, while others see remote work as an incentive to attract and retain employees. In a study by the National Bureau of Economic Research that surveyed over 500 U.S. companies, 38% of firms acknowledged using remote work as a tool “to keep employees happy and mitigate wage growth pressures.” The bigger the companies, the more they make use of it – is another finding of the study. From my point of view, this is how companies effectively counter the loss of valuable employees because the need for new specialists on the market is increasing rapidly, and the companies that are most attractive to their employees will win.

Speaking Of Wage Growth Pressures:

In the U.S., workers even accept lower pay (e.g., smaller salary increases) in exchange for the possibility of decentralized work. This, in turn, affects the wage cost level for employers, who are confronted with increased costs in almost all areas due to inflation. This can lead to a price increase for the products and services offered, which would fuel inflation through the wage-price spiral. Accordingly, the potential for savings is welcome – although it must, of course, always be borne in mind that the successful construction and introduction of an infrastructure enabling productive decentralized work also requires investments in this area.

Become Sustainable

Location independence is one of the most significant advantages of remote work. We decided six years ago to do without office space entirely. Since then, all of our relevant KPIs have been going up. The no-office strategy is compelling in the area of ​​recruiting. The search radius for new talent is expanding enormously. Anyone previously focused on the greater Hamburg area can approach talented people worldwide without an office. Without having to rely on the willingness to move. If someone is sitting at the computer in Hamburg, Munich, or Bali, it doesn’t matter if the organization is appropriate. Many applicants are also quickly convinced because working from home gives them much freedom. Incidentally, most of the applicants we speak to rate themselves and their ability to work remotely very well.

Of course, personal conversations remain important even without a shared office. Still, they are conducted in a different atmosphere, e.g., at a virtual lunch, company events, or sometimes on a walk together.

Of course, the successful adaptation of an organization to the complex requirements of the new working world is, in most cases, a significant challenge: business model, leadership, employee freedom, and the type of general and specific objectives, all of which can no longer be separated from one another. Conventional management systems quickly reach their limits because they are too rigid and sluggish. Instead, one should work with agile management systems such as OKR – Objectives and Key Results. This allows employees and teams working remotely to be managed in the best possible way.

The world of work is amid the most significant change of all time in terms of its framework conditions (how work “takes place”). This also includes a complete cultural change to which companies should not only react but also help to shape it. There will be no return to the pre-corona world of work. Companies and those responsible should adapt to this across all sectors. Companies can only retain the most incredible talent if they offer potential employees the appropriate framework conditions.

Also Read: 5 Practical Tips And Routines For More Productivity In The Home Office