Mo Hazmian is the CEO of VEL.
The rapid shift to remote work has transformed the workplace forever. We’re now in workplace 4.0. While this new way of working was already on the rise before the pandemic, I think COVID-19 accelerated the shift by at least five to seven years, leaving many businesses scrambling to adapt. Post-pandemic return to office (RTO) mandates have drawn both praise and criticism.
As a CEO, I’ve seen firsthand how this new reality is forcing leaders to rethink everything from infrastructure to inclusivity. But with all the changes we’ve experienced, one thing remains clear: we’re still in the midst of this transformation, and the dust hasn’t settled yet.
The Infrastructure Shift
To put things into perspective, there are about 168 million people in the U.S. workforce. According to a variety of sources, including Edelman’s report with Upwork, around 60 million of these are freelancers—non-W-2 independent contractors, including writers, graphic designers, and coders. What’s remarkable is that they’re often working remotely.
McKinsey’s research adds to this picture, noting that around 40 million people work remotely three to five days a week. So, in total, we have around 101 million people no longer tied to traditional office buildings every day. Where are they working? This is a critical question because human beings fundamentally require a sense of belonging.
For many decades, the infrastructure we relied on—desks, chairs, lighting, acoustics, air quality and security to name a few—was the responsibility of the employer. We invested huge amounts of capital to ensure employees had a functional, ergonomic work environment. But now, with remote work, a lot of that infrastructure falls onto employees.
This isn’t something to celebrate. While some leaders may be happy to cut these costs, they should be cautious. There’s a consequential impact when that infrastructure is no longer provided.
An estimated 95% of remote jobs still have some level of geographical requirement. We may have hated commuting, but these shared spaces at least gave us a sort of central nervous system—a place to wear the colors of our company and culture. Once you become dispersed and decentralized, that sense of belonging is diluted. We are now digital nomads, working for companies and adopting principles and culture, but we’re doing it from afar.
When everyone is dispersed and decentralized, the connection to company culture weakens, making it harder for leaders to foster a sense of belonging. That breakage and dilution of the relationship is, in essence, what happens to company culture when everyone is dispersed. But this presents a challenge for leaders: How can they rebuild that sense of belonging?
The Uncertainty Of Remote-Only Companies
Many leaders are trying to undo the shift to remote work. But apart from companies such as WordPress and Shopify, there aren’t many enterprises that have created substantial economic value while being born out of a remote-first model. Building large-scale value remotely hasn’t yet been proven on a sustained basis.
No leaders are trained to manage this, and the infrastructure just isn’t there. We’re working in a different paradigm now, and you can’t make TV for radio. You have to start thinking differently.
Beyond infrastructure, there’s another vital aspect that often gets overlooked in remote environments: inclusivity. I’ve been part of think tanks, and I believe diversity leads to better performance and better teams. However, inclusivity requires a different muscle, and it can sometimes be lost in remote work environments. People tend to congregate around like-minded individuals. Remote work can encourage people to connect with others who share similar interests, which can unintentionally limit the diversity of thought and interaction that naturally occurs in physical office spaces.
In a physical office, human interactions naturally encourage more diverse connections. When you’re remote, those connections are harder to foster, and people can feel left out, particularly if there’s a split between remote and physical employees. Remote workers might feel excluded from decision-making processes or promotions.
The Importance Of Synchronization
Capitalism requires growth—more revenue, more profit. And that growth happens because many people are doing things correctly. In the remote work environment, achieving growth still depends on synchronization—teams working together cohesively, even from a distance.
If everyone is pulling toward their own goals, you may have chaos. Startups often rally around a shared mission, which helps avoid this issue. They are ideological in their approach, instilling the idea that “we’re going to change the world.” Larger companies can learn from this. Even if you’re not a startup, it’s important to remind your team regularly of the impact they’re having, not just on the company but on society.
We don’t yet have enough long-term data to fully understand the real pitfalls of disconnected culture. But productivity, communication and inclusivity all take a hit. We’re still human beings, and social connection is critical for us. While there are great tools for online communication and activities, if they’re forced or overly structured, they lose their spontaneity and effectiveness.
Ultimately, it’s crucial for companies to recognize the challenges of remote work and find ways to counteract the downsides. Just because employees are working from home doesn’t mean they don’t need support—whether that’s in terms of equipment, infrastructure or clear lines of communication.
So what’s next?
We are all part of this change. Recognizing that fact is the first step. As we navigate this ongoing change, it’s essential to ask: What’s my role in maintaining a strong, inclusive company culture and driving synchronized growth in a remote-first world?
Forbes Business Council is the foremost growth and networking organization for business owners and leaders. Do I qualify?
Read the full article here
