New studies on worker satisfaction and productivity are causing significant ripples in labor relations. They’re also causing employers to rethink their positions given the possibility of a difficult economy in the near future.
At the beginning of the pandemic, remote work looked like a win-win for everyone. Employees were able to work from home, eliminating commuter times. Worker productivity shot up.
Along with the productivity increases early on, worker satisfaction shot up as well. Workers were now able to juggle certain activities at home such as picking up the kids from school, being able to make up the time later in the day.
The Census Bureau confirms that currently 39% of workers are working remotely with over half of them doing so on a full time basis. The Conference Board also did a study showing that worker satisfaction hit its highest point since the study began, in 2022.
The problem is that worker productivity has now taken a nose dive.
After productivity increased at the beginning of the pandemic, it began a decline which has continued into the first quarter of this year. Workers surveyed recently thought that their production had increased by 7.4% while their managers confirmed that it had actually declined by 3.5%.
The reasons for this decline are academic. Communicating with an employee at home over an internet connection is more cumbersome and time consuming. Managers also confirm that worker creativity and learning have also diminished without the personal interaction of an office.
This situation puts employers in a difficult spot. While the labor market remains tight, the advent of a difficult economy means that employers will need to improve productivity in order to maintain some modicum of profitability, quality, and market share.
Many employers who have mandated their workers return to an in-office setting have faced a mutinous result. But many employers are coming to the realization that the only way they’ll increase productivity and be able to get through a difficult economy is by demanding a wholesale return to the office.
Time will tell how this plays out. I will continue to write about this developing story.
Let me leave you with this.
Chris Jones of The Chicago Tribune recently did a piece detailing the decline of live theater in Chicago. Since the pandemic, three dozen Chicago Area Theater Companies have closed with the rest either on life support or producing at significantly lower levels. This got me thinking.
Exactly how has our world changed in the past three years?
Thousands of restaurants have closed. I can’t even begin to list all of my favorite haunts that are simply no more.
People don’t go to the movies much anymore. It seems like they’d rather stay home on a Saturday night and watch their favorite streaming service.
Downtown is almost deserted. Empty storefronts advertise space for rent or lease on most blocks. Office buildings are giving away whatever it takes to find tenants who’ll anything that remotely resembles a reasonable rent.
It seems like people are still hunkering in their bunkers even though the reopening orders have been in place since 2021. Is this really what we’ve become? Are we now a nation who would rather stay home then go outside and live their lives?
No matter how you look at it, this can’t be healthy.
It’s going to be a beautiful weekend. Why not get out and enjoy some of it?
The Air and Water Show is in town this weekend. Take a trip to the lakefront and enjoy the perfection of fighter jets buzzing overhead.
Spend some time with your loved ones. Go to a park, ride your bicycles, and enjoy the restaurant of your choice. Get out of the house and take a mental health break.
If difficult times are ahead, you’re going to need your sanity.
We’re all going to get through this. Let’s get through it together.
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