Vanguard Group "If You Don't Return to Office, You Will Be Fired"
Employees Find It Hard to Insist on Remote Work Amid Recession and Layoffs
[Asia Economy Reporter Haeyoung Kwon] The Wall Street Journal (WSJ) reported on the 3rd (local time) that American companies are discontinuing the remote work system that spread during the COVID-19 pandemic and are ordering employees to return to the office.
Famous asset management firms such as Vanguard Group and Paycom Software, among other U.S. companies, have issued guidelines this year to increase office attendance or follow the existing hybrid method combining office attendance and remote work. Some companies have warned that employees who insist on remote work and do not comply with the new guidelines may be fired within weeks.
Last month, Vanguard Group sent a memo to employees stating, "Many employees are not following the guideline to come to the office on Tuesdays, Wednesdays, and Thursdays," adding, "Unequal and inconsistent adoption of the guidelines is causing inequality in the process of applying the new model and making it difficult to realize the advantages of face-to-face training, collaboration, and connection." Subsequently, Vanguard Group warned some employees that "if you do not comply with the office return policy, you will be fired within weeks and will not receive severance pay."
As COVID-19 became a pandemic, companies began adopting and expanding remote work. According to security company Castle Systems, the office occupancy rate in 10 major U.S. cities last year was below 50% on average. However, as countries recover from the impact of COVID-19 and normalize economic activities, more companies are reducing remote work and promoting office returns. Major investment banks (IBs), including Goldman Sachs, have also ordered employees to return to the office, resulting in current working styles that are not significantly different from those before COVID-19.
It is also reported that some companies require "100% office work" when hiring new employees.
Among big tech companies, Elon Musk, CEO of Tesla, is leading the abolition of remote work. Musk eliminated remote work immediately after acquiring Twitter in October last year. Earlier in June, he instructed Tesla employees to work at least 40 hours a week in the office, saying, "If you don't like it, leave the company."
Companies view office returns as important for problem-solving, new employee training, and strengthening corporate culture. On the other hand, employees advocating for remote work argue that office work is unproductive and commuting is inefficient. David Garfield, Global Head of consulting firm Elix Partners, said, "There is a bit of a tug-of-war," adding, "Employers are going through a tough time."
However, with the economic downturn and layoffs this year, companies are expected to take the lead in the controversy over office returns. Employees are also unlikely to insist solely on remote work against company policies any longer. According to recent surveys, most employees are willing to come to the office at least a few days a week, and many of them acknowledge the advantages of office attendance.
WSJ reported, "As the job market changes, more companies are ordering employees to return to the office."
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