
My walking partner’s brother was apparently experiencing pressure to return to the office a few months ago, and responded by finding a different job that would not do that to him. I’m not sure how long that process took, but not that long, really.
There’s been a fair amount of debate about whether people would ever return to the office or not. A lot of people already have, everywhere when needed, and in some regions because of local norms. But some jobs really don’t need to ever be done in person. My friend R., for example, saw her local office be permanently closed because her company realized that was an expense they didn’t need to be paying ever again. Unless she gets a different job, she’ll never go back to the office, and odds are good that many of the customer service jobs she is likely to ever work will similarly be exclusively WFH.
Goldman Sachs is experiencing a particularly Today’s World form of this push and pushback, with DJ Sol apparently trying to get people back in, and in turn, experiencing a bunch of people being willing to tell all kinds of stories about him that maybe don’t look so good. I expect more work dynamics to experience the attempt to exert power by management being blocked by workers going to social media to get management to have to go put out PR fires instead. Or be replaced by people who are considerably more socially adept.
There was discussion about pay scales early on, when many tech companies sent most (all?) of their workers home and told them to expect to be there for months / ever. The workers moved back to where they used to live before coastal city job opportunities beckoned, and where grandparents could help out with child care, or the hiking opportunities were more plentiful, and the houses were both larger and cheaper with bigger backyards. Sometimes, they moved to places where the schools reopened in person months sooner than the coastal city they still nominally WFH to? In? Of? Prepositions have failed me.
Most of the discussions worked kinda like this. We pay Pat $X00,000 because Pat has to pay rent in this here expensive coastal city. Now that Pat is living in a much less expensive city further inland, we are going to pay Pat YY% of $X00,000, to reflect Pat’s reduced cost of living due to the move.
I did not feel like this made any sense. I mean, why can’t Pat shop Pat’s services to a competitor? I mean, the justification for reducing Pat’s pay was due to Pat’s changed living circumstances, not the job Pat was doing. Someone else is gonna go, hell’s to the yes, I want Pat to work for me! I’ll give Pat a raise! Hallelujah!
The long-term impact of WFH for that slice of jobs that can be done _just as well from home_ as from _in an office_ (not true of all jobs! Some jobs can be done from home, but worse, and some jobs cannot be done from home at all) is to produce a national job market. In the Before Times, the job market was highly, highly, highly local. Not only did the people who lived and worked in the PacNW have a relatively high degree of commitment to not moving to, say, the Bay Area to work (if they wanted to work in the Bay Area, they would have already left), as a general rule, it was pretty tough (at least 20 some years ago) to convince someone who had a job on the East side and who lived on the East side to take a job in Seattle proper. Crossing the bridges sucked. During my (admittedly few) years working in tech in the PacNW, I wound up on the East side repeatedly, even tho I really wanted to be in Seattle — and I kept looking for Seattle work whenever my butt was in a seat in Kirkland or Factoria or wherever.
Imagine, if you will, all the people who love living near whatever they love living near, or who have a mortgage, or don’t want to move their kid out of their high school — imagine all those people that a company in a coastal city would have LOVED to recruit, but who could not be recruited because they had some kinda job that made their life work and no amount of money was enough to blast them loose.
Imagine now, you can hire them without having to convince them to move.
Their local employer is completely, irretrievably, fucked.
If you are their local employer, you are gonna be paying national job market prices for those employees.
ETA: Oh, also — someone on Bloomberg saying that job listings are including permanent WFH as a benefit. All that, right there. So succinct, compared to me.
ETAYA: And yeah, the housing market and every other aspect of local economies that have a bunch of people in them doing WFH are going to be impacted. It’s not just exporting housing market appreciation. It’s exporting the incomes that made housing markets appreciate in the first place. Local inflation will no longer be contained by anything.