(This article was first published in the Critical Path, the monthly newsletter of PMI Sydney Chapter publish in September 2024)
Flexible working arrangements have been a topic of discussion long before the COVID-19 pandemic. Initially, these arrangements were seen as perks offered by progressive companies to attract top talent and improve work-life balance. However, the onset of the pandemic in early 2020 forced organisations worldwide to adopt remote work almost overnight. This sudden shift not only proved the feasibility of remote work but also highlighted its benefits, such as increased productivity, reduced commuting time, and better work-life balance.
The Shift in Organisational Strategy
As the world gradually recovers from the pandemic, organisations are re-evaluating their work strategies. While some companies continue to embrace flexible working models, others are pushing for a return to traditional office settings. Notably, Amazon and NSW government have recently announced plans to bring employees back to the office five days a week, starting January 2025. While there are many arguments for and against this trend, it is important to consider the impact of such decisions on Gen Z employees who entered the workforce during the pandemic. After all, they are the future leaders who will rule business world in the next few years.
Amazon’s Return-to-Office Mandate
Amazon’s recent decision to require corporate employees to return to the office five days a week marks a significant shift from its current hybrid policy. CEO Andy Jassy emphasised that this change aims to strengthen team collaboration and reinforce Amazon’s culture. However, the announcement has sparked mixed reactions among employees, with some planning to “soft quit” in response. This term refers to employees disengaging from their work without formally resigning, highlighting the dissatisfaction among those who have grown accustomed to remote work. Other tech giants are rubbing their hands waiting to head-hunt the top talent expected to flee Amazon.
NSW Government’s Directive
Similarly, the NSW government has issued new guidance for public sector employees to work primarily from their offices. While flexible working arrangements will still be available, the directive encourages a return to more traditional office-based work. This move is part of an effort to revive commercial centres and improve productivity. However, it raises questions about employee morale and retention, especially for those who have adapted to the flexibility of remote work.
Trends and Future Speculations
Despite the push from some organisations to return to full-time office work, hybrid work models remain prevalent. Many companies are adopting a balanced approach, allowing employees to split their time between the office and home. This model caters to diverse employee preferences and offers the benefits of both remote and in-person work.
Employee Preferences
Surveys indicate that a significant portion of the workforce prefers hybrid or remote work arrangements. For instance, a McKinsey & Company study found that 48% of 18-to-29-year-olds favour a hybrid setup. This preference is particularly strong among Gen Z employees, who value the flexibility and work-life balance that remote work offers.
Economic Impact
The return to office work can have a positive impact on local economies by increasing foot traffic and spending in commercial areas. However, it also imposes financial burdens on employees, such as commuting costs and other office-related expenses. Balancing these economic considerations with employee preferences is a challenge that organisations must navigate.
Future Trends
Looking ahead, the future of work is likely to be characterised by a blend of remote, hybrid, and in-person models. Organisations will need to remain flexible and responsive to employee needs while ensuring productivity and collaboration. The success of these strategies will depend on industry, company culture, and the ability to adapt to changing circumstances.
Impact on Gen Z Employees
Isolation and Fatigue
Gen Z employees, particularly those who entered the workforce during the pandemic, face unique challenges with remote work. Isolation and digital fatigue are significant concerns. The lack of social interaction and continuous screen time can lead to feelings of loneliness and burnout. This social disconnection can hinder their ability to build relationships and integrate into the company culture, affecting their overall job satisfaction and productivity.
Lack of Mentorship
Mentorship is crucial for skill development and career growth. Remote work can limit opportunities for informal interactions and networking, which are often facilitated by in-person work environments. Without regular in-person interactions, Gen Z employees may miss out on valuable learning opportunities and feedback from more experienced colleagues. This can delay their career progression and reduce their competitiveness in the job market.
Career Development
The challenges of remote work, including isolation, fatigue, and lack of mentorship, can have a profound impact on the career development of Gen Z employees. Slower skill acquisition, limited professional growth, and decreased job satisfaction are potential consequences. Addressing these issues is crucial for ensuring the long-term success and satisfaction of young employees.
Recommendations for Business Leaders
To ensure that Gen Z employees are not disadvantaged by the lack of mentorship and the issues of isolation and digital fatigue, business leaders can implement several strategies:
- Enhanced Mentorship Programs:
- Structured Mentorship: Establish structured mentorship programs that pair Gen Z employees with experienced mentors. Regular check-ins and goal-setting can help provide guidance and support.
- Virtual Mentorship: Utilise virtual tools to facilitate mentorship relationships. Video calls, chat platforms, and collaborative tools can help maintain regular communication and support.
- Fostering Social Connections:
- Team Building Activities: Organise virtual and in-person team-building activities to foster social connections and a sense of community.
- Social Spaces: Create virtual social spaces where employees can interact informally, similar to water cooler conversations in an office setting.
- Balancing Workload and Breaks:
- Encouraging Breaks: Encourage employees to take regular breaks to reduce digital fatigue. Implement policies that promote a healthy work-life balance.
- Flexible Schedules: Offer flexible work schedules that allow employees to manage their time effectively and reduce burnout.
- Hybrid Work Models:
- Office Days: Designate specific days for in-person work to facilitate collaboration and mentorship while allowing flexibility for remote work.
- Feedback Mechanisms: Implement feedback mechanisms to continuously assess and improve the hybrid work model based on employee experiences and preferences.
- Professional Development Opportunities:
- Training Programs: Offer training programs and workshops to help Gen Z employees develop essential skills and advance their careers.
- Career Pathways: Provide clear career pathways and opportunities for advancement to motivate and retain young talent.
Conclusion
The decisions by Amazon and the NSW government to bring employees back to the office five days a week reflect a broader debate about the future of work. While there are valid arguments for both remote and in-person work, it is essential to consider the unique needs and challenges faced by Gen Z employees.
For Gen Z, the benefits of in-person work, such as enhanced collaboration, mentorship, and professional growth, are particularly significant. These young employees are at a critical stage in their careers, and the support and guidance provided by an office environment can be invaluable. Therefore, organisations should seriously consider the advantages of bringing employees back to the office, at least part of the time, to help Gen Z achieve effective career development.
In conclusion, while flexible working arrangements have proven their worth, in-person work has unique advantages that can’t be replicated by flexible working arrangements, particularly for the younger generation entering the workforce.