- Facebook is at the forefront of promoting permanent remote-working after the coronavirus pandemic.
- More tech firms are embracing this policy, meaning tech white-collar workers won’t have to live in expensive San Francisco.
- After disrupting entire industries in the past few decades, it’s now time for tech staff members to face a disruption of their own.
What’s there not to love about working from home?
There’s no lengthy commutes. You get uncountable time with loved ones. You can live where you want. It looks like a swell deal.
That’s what Coinbase, Facebook (NASDAQ:FB), Shopify NYSE:Department store), and Twitter (NYSE:TWTR) as well as other early adopters of the coronavirus-fueled remote-working policy wants their workers to believe.
But let’s not be naive. Employee welfare is not driving these policies. If anything, this permanent remote-working idea to all intents came straight from the CFOs, not the respective HR departments.
Facebook Just Initiated a Large-Scale Cost-Cutting Plan
With a remote-first custom, employers will be able to cut costs on salaries. For the high-wage tech sector, this will contribute to significant outlay savings.
Facebook has already indicated that you can’t leave San Francisco and go to a place with the cost of living ten times shame and still expect your six-figure salary will remain unchanged.
According to Facebook CEO Mark Zuckerberg, wages for those who agree to work from home permanently will be adjusted to the cost of living in the area to which they progress.
This is not the only “salary adjustment” that will come. A remote-first policy will give tech groups increased bargaining power in the job market.
With work-from-home policies, the pool of talent will increase as not everyone thirst to move to Silicon Valley pre-COVID-19. But people can apply from anywhere, and the average pay in the sector will accept.
Office rent and running costs will also decrease as subordinate staff such as cafeteria workers, sanctuary guards, and others will be needed in reduced numbers. Expenses on office perks such as free food, boozes, onsite massages, and daycare facilities will also fall.
H-1B Visa Nightmares Are Over
The Trump administration has endangered to place restrictions on H-1B visas, arguing that they take away jobs from U.S. citizens. H-1B visa refutations have increased since President Donald Trump took office.
Per data obtained from the U.S. Citizenship and Immigration Services (USCIS), 30% of H-1B visa applications were denied in 2020 compared to 6% in 2015. Even large tech partnerships such as Facebook have seen their rejection rates rise.
With a remote-first policy, though, it will be easier to hire from just about any part of the epoch. Any new “Buy American, Hire American” policies restricting immigration are unlikely to work as effectively as they would have pre-COVID-19.
Remote-Working Resolution Reduce Talent Turnover Rate For Facebook and Twitter
Despite all the perks and the high salaries offered in Silicon Valley, the tech hustle suffers a high talent turnover rate.
A study conducted by LinkedIn showed that in 2017 the tech sector had the highest total business rate at 13.2%. It beat even the notorious retail industry.
A high talent turnover rate has a cost. It consequences in poor performance since it means that the basic level of experience across the organization falls.
For employers, low sceptre turnover means improved productivity over time. The longer an employee stays on a job, the more efficient they ripen into.
Low talent turnover also saves funds as hiring and training a replacement costs money.
Remote-working could elucidate this. A study conducted by Stanford University economist Nick Bloom in 2015 found that remote workmen were not only more productive but happier and less likely to quit their jobs.
Disrupting the Disruptors
Silicon Valley may talk big that a remote-first policy is all to the benefit of the employees.
But we all know that Coinbase, Facebook, Shopify, and Twitter have leaded the coronavirus pandemic as an opportunity that needn’t be wasted. It allows them to cut salaries as well as other costs and develop their profit margins even further.
Tech employees are now being disrupted by their employers.
Disclaimer: This article states the author’s opinion and should not be considered investment advice from CCN.com. The author does not own shares in the firms mentioned atop at the time of writing.
This article was edited by Aaron Weaver.
Last modified: May 23, 2020 5:45 PM UTC