alt Hacker NewsGood satire. I find the "RTO is because of RE valuations" to be the most bizarre thing about the post pandemic work discourse. Office leases are a rounding error to large employers. They are not coercing employees back to the office because their worried about the value of a single portfolio asset falling (assuming they even own it). They are doing it because it's about power. Middle managers do not trust their staff. They need to surveil and police them to feel productive and powerful. The rank-and-file love remote work because we have lives and benefit enormously from the flexibility. The managerial class desperately needs bodies in office to feel like their jobs are worthwhile.
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> Middle managers do not trust their staff. They need to surveil and police
2010-2016 in SF there was no such thing as a manager except PM who had no power (they were mostly just happy to be there).
Over time middle management and HR got insane - became the entire show. The whole point of a tech job. Then it was 1:1s and backstabbing all the sudden you could get someone fired. Hilarious, a few years prior if you complained about someone it was your problem - if you don’t like the culture you can leave. And some did because there were many opportunities.
Same thing happened with the web. Turned into banning and blacklisting and all the bullshit authority surrounding the activity taking over the activity itself - ruining it.
It’s not needed, we did better without these things.
I think it’s a socially acceptable costly signal for communicating that power, less about the power itself. Perhaps a different culture could have settled on a humiliation ritual. Either way it has to be costly otherwise it won’t be seen as a true signal though it is likely possible to find a more efficient costly signal.
It’s not just commercial real estate but selfishly on a personal level too.
Like a family home in Bay Area is 2-3M. Lots of other places in California with better weather and houses closer to 1M. The primary reason the area supports such high housing costs is the density of high paying jobs that require in office somewhere in the bay.
Without RTO, all the managers with property in the bay get skittish that a great exodus will happen from the Bay Area like SF in covid and their house won’t appreciate 10-20% a year
in Pittsburgh the local government tied RTO to RE valuations for the entire city by way of offering tax benefits to large employers for pushing RTO. I won't debate you on middle managers wanting power, the two aren't mutually exclusive. But WFH costs business districts a ton of money and that pressure isn't just being absorbed. Cities offer employers subsidies in exchange for RTO and get their money back in collecting taxes on parking, lunches, rideshares, after work drinks, quick shopping on the way home and all the other costs that employees bear. It's a direct wealth transfer from the working class to local governments, which then pass some of that wealth onto the business owners.
I’ve been on Csuite of 3 orgs since the pandemic forced wfh normalization. Your correct the RE thing has always been a false narrative. I’ve never seen or read of it coming from an executive. To my knowledge, it was dreamt up by pundits, speculators, and is just a lazy attempt to understand what goes on in boardrooms driving these decisions.
What I have witnessed, with empirical evidence, is that productivity and/or output across the organization slows down. It is great at first as everyone can catch up on their work and existing projects but then the longer term implications is the teams are disconnected, decisions are more difficult, coordination of simple tasks more difficult, onboarding and actually integrating new employees is difficult, curating the culture is difficult, and it goes on. If you’re a very disciplined individual contributor focusing on low collaboration units of work, then it’s likely you did see a productivity boost. It’s unlikely you could maintain it over long periods of time. But even if you did, you’re probably an outlier.
So it’s not about anyone’s need to feel worthwhile it’s literally about doing what is probably the best for the company even if it upsets some people. Even if some people will be less productive, the organization as a whole will function better. When productivity goes up, it’s only a good thing if output and all the other tangibles aren’t sacrificed in the process. The leaders of organizations initiating RTO usually have done so by avoiding this true talk type conversation with the employees. This is what has led to people filling in the gaps with BS about real estate evaluations. It’s been poor communication and I think a dose of honestly and openness would be beneficial. Sometimes it’s a feeling and they don’t have the means to really collect data and lay it out in an empirical way, so I think that’s part of the reason they avoid it.