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.
A comment I’ve seen a few times is that remote work highlights the minimal value that middle-managers provide to companies.
If you’re employees work from home with little interaction with their managers and they do it well/better, then why have those managers? Like you said, companies want to be cost effective. So the push back to the office could be coming from managers who don’t want a light shined on their lack of value.
Ironically that probably ousts out their minimal value harder. Not a good look forcing your “underlings” if productivity was good prior, and subsequently falls flat.
Middle management has gotten absolutely out of control in America
Imo (and this is largely conjecture) it’s an end result of stagnant wages. It used to be that you might stay in the same position but get actual pay increases 50 years ago. Now you don’t get the pay increases really, maybe a 3% annual bump if you’re lucky. They need something to retain talent so a lot of places end up creating bullshit management positions out of thin air to retain staff that come with a slightly more modest pay bump.
So instead of the 3% bump you get a 5% bump and now you’re “director of clinical programming” or “associate manager of marketing and sales for eastern iowa division” and have 10 employees “report” to you but in reality you’re neutered and have no actual power to do anything to them but tattle to the actual boss. But then the company doesn’t have to give you a 7-10% bump that outpaces inflation and feels like an actual raise. They save the real promotions for nepotism.
But this happens constantly and now industries are jam packed with employees that just bother other employees all day and/or create systems that slow down employees en masse to “increase accountability” that are constantly updated and replaced without removing old ones.
Whenever someone goes on about fixing healthcare this comes to mind. I’ve worked in healthcare for years and it is absolutely full of this. Pharma, insurance, hospital admin, all of them are loaded up with tons of these kinds of staff. I can’t tell you how many useless staff I’ve seen get promoted to positions that were literally created for them to supervise a handful of people. I can’t tell you how many times I’ve had to fill out 7 sets of paperwork that takes 2 hours and is all redundant copies of each other because 9 middle managers from the hospital, insurance, and state administration are all constantly convinced I’m a fraudulent liar despite being a licensed professional with a decade and a half of clinical experience and absolutely no investigations or citations on my record whatsoever.
Single payer healthcare is definitely a great idea that should be pursued but this is a huge problem that also needs to be addressed regardless of who’s paying the bill if you want to see changes with actual costs, wait times, clinician burn out, etc.
I’d imagine it’s similar for other industries too. How much wasted resources are in middle management at tech companies, at food production, at basically anything? How much of rising costs are basically going to pay the glut of middle managers that being nothing to the table but resource drain? Who do nothing in terms of bringing in money, who do nothing in terms of providing value? How much cheaper could my cellphone, bread, wood, etc be without these parasites sucking up resources
But then the societal impact comes up. If you addressed this problem tonight that would mean millions of people go from comfortably middle class to jobless overnight. America isn’t known for great social supports as is, what happens when you throw a 7-8 figure number into the mix (with the reduced tax income from the loss of their job income).
Fwiw I genuinely think that point is a huge factor in why our government resists proper single payer healthcare; a true program would displace millions of workers overnight as it would make companies like Aetna, Cigna, etc largely redundant and reliant on their much less lucrative life/home/auto/renters insurance divisions. They would slash workers left and right. If we ever get one it will be a two lane system where the private insurers stay alongside it as a “boutique” option for the rich to receive better service, guaranteed. Plus you know, those companies literally own politicians lol and that’s the other much larger problem