human resource
7/28/2021 The New World of Work
https://www.shrm.org/hr-today/news/hr-magazine/summer2021/Pages/the-new-world-of-work.aspx?utm_source=marketo&utm_medium=email&utm_campaign=ed… 1/10
HR MAGAZINE | SUMMER 2021
The pandemic is threatening the �ve-day, 9-to-5, in-o�ce workweek. So where do businesses go from here?
By Theresa Agovino | June 2, 2021
The New World of Work
F inancial services provider TIAA had a jump-start when planning for the post-pandemic return of employees to its New York
City headquarters. Before the public health crisis upended life, TIAA was already redesigning its midtown Manhattan
location to create more areas for collaboration and less assigned seating to re�ect employees’ use of the space.
The COVID-19 pandemic sparked even bigger changes. TIAA created a hybrid work model that allows about 85 percent of its 16,000
employees to perform their jobs remotely at least part of the time. Schedules will re�ect employees’ roles, business requirements and
personal needs. TIAA’s o�ce in Charlotte, N.C., was already being renovated to provide greater �exibility, and now the company is
considering how to adapt its four other major hubs.
Fe ed
ba ck
k
7/28/2021 The New World of Work
https://www.shrm.org/hr-today/news/hr-magazine/summer2021/Pages/the-new-world-of-work.aspx?utm_source=marketo&utm_medium=email&utm_campaign=ed… 2/10
E
T
“The pandemic catalyzed us to think about work in di�erent ways, for us to think about space and �exibility and how they can work
together,” says Andy Habenicht, TIAA’s senior vice president of associate experience and solutions. “We’re going for an approach that
gives us the best of both worlds.”
The pandemic dealt what is likely a serious blow to the �ve-day, 9-to-5, in-o�ce workweek that has underpinned work life for nearly a
century. Flexibility had been seeping into the workplace, but now it’s �ooding the corporate world as companies have discovered that
remote work didn’t slash productivity and employees valued the arrangement. To be sure, such onsite businesses as hospitals, hotels,
retail services and manufacturing plants are less impacted. But even so, according to research from the Society for Human Resource
Management (SHRM), 70 percent of employed Americans would prefer to work remotely on a full-time or part-time basis if given the
option, and 35 percent would accept a salary reduction in return for that �exibility. Also according to SHRM’s research, nearly 20
percent of employed Americans who would prefer to work from home in some capacity would start looking for a remote position
elsewhere—and 7 percent would quit their job—if their employer did not give them the option to work remotely.
The Revolution Has Begun
mployers are taking such threats seriously. Nearly 60 percent of corporate leaders said they would let employees work from
home occasionally, and 49 percent said remote work would be OK on certain days, according to a March survey by research
�rm Gartner. The changes are likely to have a profound e�ect on corporate real estate. Nearly half of companies surveyed said their
overall footprint could contract up to 30 percent within the next two years.
“This is as seismic a change as we went through in the �rst and second industrial revolutions,” says Steve Hat�eld, a principal with
Deloitte and global leader for Future of Work. He says companies have been slowly shifting toward more �exible scheduling, though
the pandemic accelerated the move. “The pandemic uncovers that the model we’ve been using is geared toward shift workers on an
assembly line,” he says.
Companies such as Facebook, Spotify, VMware, Twitter and Reddit have already given employees permission to work from wherever
they choose, though some have imposed certain limits. In addition, more companies are searching for directors of remote work to
manage the hybrid approach; Facebook hired someone for that job last year.
While the transformation is occurring, many companies are still uncertain how to reorganize their existing o�ces and are avoiding
major commitments while the situation is still in �ux.
“The clients are not looking to spend a whole lot of money to change the current environment,” says Janice Fellows, studio design
principal at Ted Moudis Associates, a design �rm. Companies want more time to study how many people will be in the o�ce and how
the space will be used before making large investments, she says.
Potential Problems
here are other, more immediate concerns. In the near term, employers want increased safety protocol guidance from
government o�cials with regard to masking, physical distancing and unvaccinated employees. “It’s an interesting dilemma,”
says Phil Nickolenko, vice president of corporate services at TIAA, which won’t ask employees back until January 2022 at the earliest.
“We have a host of attorneys looking at requirements across the board in states where we have a presence.”
Corporate executives’ anxiety extends to how hybrid work will a�ect company culture, especially when diversity, equity and inclusion
are at the top of everyone’s minds in light of the killing of George Floyd and others, as well as the pandemic’s e�ect on women’s
careers. Some fear that the approach will create a two-tiered system of employees and that leadership, even if only subconsciously,
may favor those who spend more time in the o�ce, while those who work remotely will be out of sight, out of mind.
Fe ed
ba ck
k
7/28/2021 The New World of Work
https://www.shrm.org/hr-today/news/hr-magazine/summer2021/Pages/the-new-world-of-work.aspx?utm_source=marketo&utm_medium=email&utm_campaign=ed… 3/10
C
Such thoughts are not unfounded. One study by Stanford
economists concluded that employees who worked remotely
reduced their rate of promotion by half even though they were
more productive than those working in the o�ce. The research,
which was published in 2015 in The Quarterly Journal of Economics
and followed employees who worked at a travel agency in China,
has found a new audience amid the move to hybrid work.
Company executives fear that hybrid workplaces can create “A” and
“B” teams. Dropbox’s CEO wrote last year that “Hybrid approaches
may also perpetuate two di�erent employee experiences that
could result in barriers to inclusion and inequities with respect to
performance or career trajectory. These big-picture problems are
nonstarters for us.” That’s why the company adopted a “virtual-�rst”
model in which employees primarily work remotely and use the
o�ce for meetings and special occasions.
There’s a fear that women especially will be hurt by the move to a
hybrid workplace because their need to address family
responsibilities will make them more likely to work from home than
their male counterparts. That could give men an advantage in the
workplace simply by being more visible and available to corporate
executives. The concern is especially acute as the pandemic has
already derailed the careers of millions of women who have
stepped back from their positions to care for their families. The
recession caused record job loss, and women were
disproportionately impacted. According to an analysis by Gallup,
2.3 million women left the workforce in the year ended in February
compared with 1.8 million men.
“We always have to be aware of the unintended consequences of
programs designed to help people,” says Sian L. Beilock, president
of Barnard College, a women’s school in New York City. An expert
in psychology and education, Beilock says if an o�ce is primarily populated by men, it could send a signal that women aren’t welcome.
“We take cues about whether we belong from our surroundings,” she adds.
Anticipating Problems
ompany executives say they are aware of the hybrid model’s pitfalls and are taking measures to avoid them. One common
practice more companies are adopting is conducting all meetings virtually, even if some people are in the o�ce. Proponents
say that approach puts everyone in the same situation. Experts suggest that team members all come into the o�ce on the same days
to build camaraderie and prevent some employees from having more time than others with decision-makers.
Fe ed
ba ck
k
7/28/2021 The New World of Work
https://www.shrm.org/hr-today/news/hr-magazine/summer2021/Pages/the-new-world-of-work.aspx?utm_source=marketo&utm_medium=email&utm_campaign=ed… 4/10
Spotify, for example, is keeping its o�ces even though it opted to become a “virtual-�rst” company last year. Its more than 6,000
employees are not required to visit corporate locations and can work from anywhere they choose, but the o�ces will be open for those
who want to use them and for various gatherings and meetings.
The Stockholm-based streaming service created training programs for its new reality that help managers lead geographically dispersed
teams. The programs include information on how to ensure that opportunities are o�ered fairly and how to spot signs of isolation and
depression. The training builds on the experience that managers garnered during the pandemic, says Alex Westerdahl, a vice president
for human resources at Spotify.
Westerdahl says he has read about the large numbers of people who are experiencing loneliness, stress and other mental health
challenges, but he wonders whether individuals’ issues come from remote work or are a result of the cumulative e�ects of the
pandemic.
The COVID-19 pandemic has forced businesses to rethink tightly packed workplaces.
Fe ed
ba ck
k
7/28/2021 The New World of Work
https://www.shrm.org/hr-today/news/hr-magazine/summer2021/Pages/the-new-world-of-work.aspx?utm_source=marketo&utm_medium=email&utm_campaign=ed… 5/10
A New Way to Attract, Retain and Diversify Talent
Technology companies are on the forefront of the movement
that allows employees to choose where they live, as remote
work becomes much more common. Such �exibility is often
cited as a way to attract, retain and diversify talent. There’s no
consensus, however, on how to compensate those who leave
pricey locales for less expensive ones.
Streaming service Spotify will allow employees to maintain
their salaries even if they move to a low-cost area. Ditto for
San Francisco-based Reddit, a news aggregator and
discussion site. Reddit says on its website, “We believe this is
the right balance of �exibility and support for employees,
recognizing the varied tradeo�s people consider when
deciding where to live.”
According to Alex Westerdahl, a vice president for human
resources at Spotify, “It creates too much friction to localize
pay within countries.” He says the company benchmarks its
salaries to pay rates on the coasts, noting, “If you choose to
live in the middle of the country, you will be paid well.”
Westerdahl says there’s a simple principle behind the
strategy: “It’s driven by retaining and attracting employees.”
Menlo Park, Calif.-based Facebook and San Francisco-based Twitter have opted to cut salaries for employees who choose to
relocate to less-pricey communities, according to news reports. Neither company returned requests for comment.
Employers generally don’t reduce employees’ compensation for moving to a more a�ordable location, according to Brian
Kropp, group vice president and head of the HR practice at Gartner in Stamford, Conn.
“There is a reputational and fairness issue,” Kropp says. “It’s not like [those who move] are having less impact. If you have
two people in the same city and one person lives downtown and the other lives farther out where it’s less expensive, would
you pay them less?”
Most employees don’t need to worry about salary cuts. Kropp says less than 5 percent of companies are going to allow
employees to pick where they work. And only 15 percent of organizations say they will adjust remote employees’ salaries,
though 39 percent are considering such a move, according to Gartner research.
Kropp says he doesn’t believe one approach to remote workers’ salaries is better than the other. However, he recommends
that companies planning to base compensation on locale be upfront with employees.
That’s the policy Palo Alto, Calif.-based VMware Inc. has adopted. The company tells employees what their salary will be and
gives them information about the cost of living in their desired location.
Industrial designer Shelby Barlow says she took an “almost negligible” post-tax pay cut of about $50 a month when she
moved to Miami from San Francisco earlier this year. “My purchasing power increased,” she says. “I went from living in a
nothing-special house to a luxury condo.” —T.A.
Fe ed
ba ck
k
7/28/2021 The New World of Work
https://www.shrm.org/hr-today/news/hr-magazine/summer2021/Pages/the-new-world-of-work.aspx?utm_source=marketo&utm_medium=email&utm_campaign=ed… 6/10
L
V
Informed Decision-Making
incoln Financial Group is not leaving the choice of whether to return to the o�ce up to its more than 9,000 employees. It hired a
consultant to look at the tasks required by each position to determine which jobs require employees to be onsite full time and
which can be done remotely. Most employees will have a �exible schedule, though the amount of time each must spend onsite will
depend on their role.
“You can’t go rogue and let people decide,” says Jen Warne, senior vice president and chief talent o�cer for the Radnor, Pa.-based
company. “It would be challenging and hectic for the business.”
Previously, Warne says, managers decided who could work remotely, and that led to signi�cant di�erences between departments.
“There was inequity in �exibility,” she explains. “This is consistency based on job type.”
Flexibility and Freedom
Mware Inc., a Palo Alto, Calif.-based software company, opted to let its 31,000 employees work from wherever they choose,
though it is keeping its nearly 200 o�ces across the globe open for those who opt to work onsite. The o�ces will also serve
as meeting hubs that will help maintain team culture, says Rich Lang, the company’s senior vice president of human resources.
Lang says that to ensure remote employees aren’t being punished for their status, the company will track their promotions just as it
measures career progress based on gender, ethnicity and race. Still, he isn’t overly worried about preferential treatment being an issue
because managers have grown accustomed to managing remote workers.
Today’s workers spend more time on their own, making culture a bigger challenge.
Fe ed
ba ck
k
7/28/2021 The New World of Work
https://www.shrm.org/hr-today/news/hr-magazine/summer2021/Pages/the-new-world-of-work.aspx?utm_source=marketo&utm_medium=email&utm_campaign=ed… 7/10
S
And he says the new approach will help the company’s diversity e�orts as it is now recruiting in places where it never has before, such
as Detroit and Baltimore.
“People are pretty skilled now on how to have one-on-ones and
how to have inclusive meetings on Zoom,” Lang says. “We told
people to work where it works for you.”
Employees who have taken advantage of the company’s o�er to
work from anywhere are aware of the potential risks, such as not
having enough face time with management and missing out on
high-pro�le assignments. Still, industrial designer Shelby Barlow
jumped at the chance to move to Miami, where she can rent a
luxury apartment with a water view and a pool for $1,550 a month.
In San Francisco, she was paying $1,600 for only one room, and
various situations with roommates forced her to move three times
last year.
“I never felt I could get settled,” Barlow says. “The expense of it
started to feel su�ocating.”
Barlow says she and her manager had multiple conversations
before her move, to establish expectations and a communication
schedule. “I’m not fearful,” she says. “I think VM[ware] will support
me. This is an opportunity for me to advocate for myself.”
Rethinking Real Estate
ome companies are o�ering their remote employees an
opportunity to embrace co-working spaces. Schneider
Electric, with more than 135,000 employees, closed 27 of its small o�ces in 2020 and plans to shut as many as 20 more this year. The
French company with U.S. headquarters in Boston had been thinking about streamlining its real estate for years, and the pandemic
pushed it to accelerate the process. “Real estate was on everyone’s mind,” says Karen McClellan, director of the company’s real estate.
She says managing the small o�ces was already taking an outsized amount of her time and that the time spent on it was only expected
to grow as the company implemented the necessary COVID-19 safety protocols. Early this year, Schneider inked a deal with Up�ex Inc.,
a New York City-based network of co-working spaces, for its employees in seven locations.
“We don’t always want employees to work from home,” McClellan says. “We think there’s value in collaboration that happens in the
o�ce.”
Theresa Agovino is the workplace editor for SHRM.
Marshaling a Remote Workforce
Fe ed
ba ck
k
7/28/2021 The New World of Work
https://www.shrm.org/hr-today/news/hr-magazine/summer2021/Pages/the-new-world-of-work.aspx?utm_source=marketo&utm_medium=email&utm_campaign=ed… 8/10
D arren Murph has a rare position: He’s director of remote for Gitlab, a completely virtual software developer with 1,300
employees. Few companies have such roles, though the move to hybrid work is expected to make jobs like his
much more common.
Prior to joining GitLab in 2019, Murph spent more than a decade overseeing remote transformations in the marketing,
communications and supply chain industries. In 2010, he set a Guinness World Record for the most posts by a professional
blogger (17,212 for engadget.com). He recently spoke to HR Magazine about his role.
What does your job entail?
I work at the intersection of culture, operations, people, talent branding, marketing and communication. I collaborate with all
functions of the business to support GitLab clients and partners seeking guidance on mastering remote work�ows and
building culture. I champion GitLab’s all-remote culture and initiatives through content creation, interviews, webinars, case
studies, podcasts, and partnerships with organizations and universities. I work across the company to ensure that GitLab
team members acclimate well to remote, and I share our learnings with those outside of the GitLab organization.
How do you create and maintain a company culture when all your employees are remote?
Building a culture across a company where there are no o�ces requires intentionality. While technology and tools are
enabling companies to operate e�ciently in a remote setting, it’s important to focus on documenting culture �rst, then using
tools to support. In co-located companies, it’s easy to let culture be shaped by o�ce decor, the neighborhood in which a
company’s headquarters is located or the loudest voice in the room. It’s not a usable strategy in a remote environment. In a
remote team, there’s no o�ce vibe, hip co�ee or Spotify playlists that decide the culture. Culture is the barometer of how
Remote work o�ers Darren Murph some bene�ts, including the occasional visit from his son.
Fe ed
ba ck
k
7/28/2021 The New World of Work
https://www.shrm.org/hr-today/news/hr-magazine/summer2021/Pages/the-new-world-of-work.aspx?utm_source=marketo&utm_medium=email&utm_campaign=ed… 9/10
well values are adhered to and reinforced in an organization. Therefore, culture can only be maintained if values are
prescriptively articulated and visibly reinforced through elements such as discretionary bonuses and linking promotions to
values.
Aside from institutions such as hospitals or warehouses, can all businesses operate remotely? Or is remote work better
for certain industries?
Industries that produce digital outputs (software, design, advertising, marketing, editorial, etc.) are most amenable to remote
work, as everyone is on the same playing �eld by default. However, all industries can enjoy some bene�ts.
How can management ensure that remote work is successful?
E�ective remote leadership requires absolute executive sponsorship. Even apathy equates to sabotage. The key is to realize
that remote work is not about where any individual works; it’s about how the work gets done. It is fundamentally about
rearchitecting all work�ows to be e�ective in a location-agnostic setting. A quick litmus test: “Does this work�ow only work
when everyone is in the o�ce?” If the answer is yes, that work�ow must change. Leaders who refuse to recognize the sea
change in workplace �exibility will see heightened levels of attrition, with top talent �eeing to more-�exible organizations that
invest in and support remote work.
Unlike GitLab, most companies are adopting a hybrid approach where individuals will spend some time in the o�ce.
How will that a�ect the director of remote’s job?
Hybrid organizations need a director of remote work even more. All-co-located and all-remote [environments] have only one
playing �eld to administer. Hybrid has two or more unequal playing �elds. Those organizations will need a senior leader who
constantly balances myriad experiences and works to �nd equitable solutions and bene�ts for all. Hybrid is extraordinarily
di�cult to do well. By default, these organizations will end up with an “A” team and a “B” team, breeding dysfunction and
toxicity.
How can you ensure that the people who primarily work onsite don’t receive preferential treatment as a result of getting
more face time with leaders?
By keeping the executive team out of the o�ce, even if the o�ce reopens. If executives remain in-o�ce, it’s likely that all
work�ows will revert to o�ce-centric, thereby thwarting the e�ciency of remote workers. But keeping executives out of the
o�ce sends a clear signal that the o�ce is not the epicenter of power and career development. This requires a tremendous
amount of intentionality and rigor, reinforcing the reality that all-remote is a fundamentally more inclusive and equitable
design than hybrid-remote. The last thing you want is people coming into the o�ce primarily to rub shoulders with the right
people and playing politics to advance their careers, further ostracizing their remote colleagues who are prioritizing
community, family and location. —T.A.
HR DAILY NEWSLETTER
Fe ed
ba ck
k
7/28/2021 The New World of Work
https://www.shrm.org/hr-today/news/hr-magazine/summer2021/Pages/the-new-world-of-work.aspx?utm_source=marketo&utm_medium=email&utm_campaign=e… 10/10
CONTACT US (WWW.SHRM.ORG/ABOUT-SHRM/PAGES/CONTACT-US.ASPX) | 800.283.SHRM
(7476)
© 2021 SHRM. All Rights Reserved
SHRM provides content as a service to its readers and members. It does not o�er legal advice, and cannot guarantee the accuracy or suitability of its content for a particular
purpose.
Disclaimer (www.shrm.org/about-shrm/Pages/Terms-of-Use.aspx#Disclaimer)
HR DAILY NEWSLETTER
News, trends and analysis, as well as breaking news alerts, to help HR professionals do their jobs better each business day.
Email Address
Fe ed
ba ck