I have posted this on Reddit (askeconomics) a while back but got no good replies. Copying it here because I don't want to send traffic to Reddit.
What do you think?
I see a big push to take employees back to the office. I personally don't mind either working remote or in the office, but I think big companies tend to think rationally in terms of cost/benefit and I haven't seen a convincing explanation yet of why they are so keen to have everyone back.
If remote work was just as productive as in-person, a remote-only company could use it to be more efficient than their work-in-office competitors, so I assume there's no conclusive evidence that this is the case. But I haven't seen conclusive evidence of the contrary either, and I think employers would have good reason to trumpet any findings at least internally to their employees ("we've seen KPI so-and-so drop with everyone working from home" or "project X was severely delayed by lack of in-person coordination" wouldn't make everyone happy to return in presence, but at least it would make a good argument for a manager to explain to their team)
Instead, all I keep hearing is inspirational wish-wash like "we value the power of working together". Which is fine, but why are we valuing it more than the cost of office space?
On the side of employees, I often see arguments like "these companies made a big investment in offices and now they don't want to look stupid by leaving them empty". But all these large companies have spent billions to acquire smaller companies/products and dropped them without a second thought. I can't believe the same companies would now be so sentimentally attached to office buildings if it made any economic sense to close them.
When my previous employer announced RTO they literally sent us an infographic explaining why they chose their "hubs" and Denver was "$7 million in tax breaks". It's a multi billion dollar company but 7 million dollars is 7 million dollars, I guess. I don't think they even had a major office there before, they were opening one.
Thanks, that's a very good point! A physical office is a great bargaining chip for a large company. I remember a few years back when several cities and states engaged ina kind of auction to host the next Amazon HQ. It probably also works at the international level, where I imagine it will be easier to enter a market (from the perspective of local laws and permits) and sell your product there if you also open an office and create thousands of new jobs there.