Welcome to the American Office ? Where is everybody?

Covid has radically changed the way Americans do business more than any other event in modern history. Businesses that were shut down in 2020 during the early stages of the virus started to slowly recover in 2021, but the emergence of the delta and omicron
To be safe, most major companies have continued their remote working arrangements with employees with several adopting “hybrid” models that require employees to report to the office a 2-3 days/week or for urgent meetings.

As a result, most offices are more empty than full. In addition to the absence or remote workers, companies are experiencing higher than average absenteeism from employees who report they are sick with Covid or taking care of family who are sick. During the period December 29, 2021 and January 10, 2022, 8.8 million workers were absent due to illness, which was 300% the level of early December 2021 and 33% higher than January, 2021.

Other factors are affecting companies’ ability to be fully staffed in the office:
1)The Great Resignation ? 4.5 million employees resigned in November, 2021 which was a 9% increase over October. The main reasons for this increase in voluntary turnover are job dissatisfaction, need for higher wages (due to higher inflation) or the need for more flexible work arrangements, such as remote work.
2)Family obligations ? while American schools are returning to in-person learning, many schools are requiring students to wear masks and receive vaccinations. Parents who disagree with those policies keep their children and home for remote learning. Child care for these students may require parents to take turns staying home from work.
3)Covid has caused many restaurants to close due to staff shortages or the extra cost of following Covid regulations. As a result, employees are given fewer choices for meals at or near work, resulting in less incentive to commute.
4)In major cities, policy changes that reduce funding for police or decrease penalties for many crimes has led to a huge increase in crime. Employees find it more unsafe to travel to the office, so they stay home.
In San Francisco, there has been an 800% increase in car thefts and break-ins. The city now posts signs warning commuters and tourists about areas that are very likely to have car thefts. Drivers are advised to keep their windows of their cars down when parked so they won’t be broken by thieves looking for valuables in the cars. They also advise keeping trunks open as well!

What are some strategies for managers in coping with fewer employees in the office?

Peter Cappelli, the chairman of the management department at the Wharton School, suggests the following:

1) Review job requirements for new hires ? make them more realistic.
During previous recessions, companies could be more selective in creating requirements for all jobs, even the lower levels. A legal secretary job might require a high school degree but those requirements might have been increased to college degree for prestige purposes.
Managers may need to evaluate their requirements for realistically to attract candidates faster and less expensively.
2)Create a safer office environment with Covid protocols AND create better Work from Home (WFH) policies.
In the past, few employees were asking for WFH conditions but that has become a huge factor for retention and attraction of high talent people. Covid made people realize how much time and money they spent on commuting. The average American spends 54 minutes go to and from the office, but that is easily double or triple for major cities. Employees also saw how much money they saved by not commuting each day to the office ? in NY, the savings by not commuting can easily be $8,000-$10,000 per year.
Employees are also demanding reimbursement for home office expenses. States like California require employers to reimburse employees for internet, utilities and even a portion of the real estate taxes for a home office!
3)Managers need to improve their communications with employees who are working remotely. They need to explain What is happening, What is expected but also add How and Why too. They should also check in with employees each week rather than expect employees to know what to do and how their performance will be measured.

The ”War for Talent” continues with employees demanding more flexibility and independence. Those companies who rise to that challenge will be in the best position for human capital success in the years ahead.

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