Future of Work: Why Remote and Hybrid Are Here to Stay
Mar 27, 2024
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Nick Bloom, a Stanford economics professor known as the 'Guru of Remote Work,' shares his insights on flexible work arrangements. He argues that remote and hybrid models benefit both employees and companies, predicting their continued rise. Bloom discusses how AI will transform collaboration, the importance of mentorship in hybrid settings, and the balance between in-office work and remote flexibility. The conversation ends with a humorous take on sports culture and its surprising ties to the future of work.
Remote work boosts company profitability through reduced turnover and cost savings.
Rise in remote work reshapes real estate with a shift towards hybrid models and suburban offices.
Deep dives
Remote Work Trends
Remote work has become increasingly prevalent in the workforce, with many companies transitioning to hybrid or fully remote models. The profitability of remote work for firms lies in reduced turnover rates and cost-effectiveness, especially in terms of office space savings. While some advocate for in-office work for creativity and relationships, the future seems to lean towards hybrid models with a focus on performance outcomes.
Impact on Commercial Real Estate
The rise of remote work is reshaping commercial real estate landscapes, leading to a 'hybrid squeeze' and a shift towards suburbs from city centers. The donut effect is observed in many cities, with a decline in downtown activities and a surge in suburban growth. While the impact triggers changes in office demand, the long-term trend points towards a gradual growth in remote work adoption.
Future of Remote Work
Anticipated trends in remote work suggest a continuous increase in hybrid models and a slight growth in fully remote setups. Factors such as offshoring and AI pose challenges to fully remote roles, influencing the preference for hybrid work environments. The shift towards hybrid workdays aligns with increasing emphasis on performance-based management and flexibility, emphasizing outcomes over inputs.
It's Part 2 of our Future of Work series. Kara and Scott chat with Stanford economics professor and the "Guru of Remote Work," Nick Bloom. Bloom explains why he thinks flexible work has been good for both employees and companies, and why he believes it will increase in the coming years. He also shares a few predictions.