return-to-office

Dell tells remote workers that they won’t be eligible for promotion

Biz & IT, dell, Policy, remote work, return-to-office, work from home / Kris Guyer / March 18, 2024

Decisions, decisions —

Report highlights big turnaround from Dell’s previous pro-WFH stance.

Scharon Harding – Mar 18, 2024 7: 07 pm UTC

A woman in a bright yellow jacket is sitting in front of a laptop in emotional tension.

Starting in May, Dell employees who are fully remote will not be eligible for promotion, Business Insider (BI) reported Saturday. The upcoming policy update represents a dramatic reversal from Dell’s prior stance on work from home (WFH), which included CEO Michael Dell saying: “If you are counting on forced hours spent in a traditional office to create collaboration and provide a feeling of belonging within your organization, you’re doing it wrong.”

Dell employees will mostly all be considered “remote” or “hybrid” starting in May, BI reported. Hybrid workers have to come into the office at least 39 days per quarter, Dell confirmed to Ars Technica, which equates to approximately three times a week. Those who would prefer to never commute to an office will not “be considered for promotion, or be able to change roles,” BI reported.

“For remote team members, it is important to understand the trade-offs: Career advancement, including applying to new roles in the company, will require a team member to reclassify as hybrid onsite,” Dell’s memo to workers said, per BI.

Dell didn’t respond to specific questions Ars Technica sent about the changes but sent a statement saying: “In today’s global technology revolution, we believe in-person connections paired with a flexible approach are critical to drive innovation and value differentiation.”

BI said it saw a promotion offer that a remote worker received that said that accepting the position would require coming into an “approved” office, which would mean that the employee would need to move out of their state.

Dell used to be pro-WFH

Dell’s history with remote workers started before the COVID-19 pandemic, over 10 years ago. Before 2020, 65 percent of Dell workers were already working remotely at least one day per week, per a blog that CEO Michael Dell penned via LinkedIn in September 2022. An anonymous Dell worker who reportedly has been remote for over 10 years and that BI spoke with estimated that 10 to 15 percent “of every team was remote” at Dell.

Michael Dell used to be a WFH advocate. In his 2022 blog post, he addressed the question of whether working in an office created “an advantage when it comes to promotion, performance, engagement or rewards,” determining:

At Dell, we found no meaningful differences for team members working remotely or office-based even before the pandemic forced everyone home. And when we asked our team members again this year, 90 percent of them said everyone has the opportunity to develop and learn new skills in our organization. The perception of unequal opportunity is just one of the myths of hybrid work …

At the time, Dell’s chief described the company as “committed to allow team members around the globe to choose the work style that best fits their lifestyle—whether that is remote or in an office or a blend of the two.” But the upcoming limitations for fully remote workers could be interpreted as Dell discouraging workers from working from home.

“We’re being forced into a position where either we’re going to be staying as the low man on the totem pole, first on the chopping block when it comes to workforce reduction, or we can be hybrid and go in multiple days a week, which really affects a lot of us,” an anonymous employee told BI.

Dell’s new WFH policy follows the February 2023 layoffs of about 6,650 workers, or around 5 percent of employees. Unnamed employees that BI spoke with showed concerns that the upcoming policy is an attempt to get people to quit so that Dell can save money on human resources without the severance costs of layoffs. Others are concerned that the rule changes will disproportionately affect women.

Meanwhile, the idea of return-to-office mandates helping businesses is being challenged. For example, a study by University of Pittsburgh researchers of some S&P 500 businesses found that return-to-office directives hurt employee morale and do not boost company finances.

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RTO doesn’t improve company value, but does make employees miserable: Study

WFH FTW —

Data is consistent with bosses using RTO to reassert control and scapegoat workers.

Beth Mole – Feb 23, 2024 11: 05 pm UTC

For some, having to work from home during the COVID-19 pandemic was stressful. Parents balanced job duties while caring for children. Some struggled to set up a home office and adjust to new tools, like video conferencing. Lonely workdays at home added to social isolation. The line between work and life blurred.

For others, working from home was a boon—comfort, convenience, flexibility, no commuting or rush-hour traffic, no office-environment distractions. When the acute aspects of the pandemic receded, some who at first struggled began to settle into a work-from-home (WFH) groove and appreciated the newfound flexibility.

Then, bosses began calling their employees back to the office. Many made the argument that the return-to-office (RTO) policies and mandates were better for their companies; workers are more productive at the office, and face-to-face interactions promote collaboration, many suggested. But there’s little data to support that argument. Pandemic-era productivity is tricky to interpret, given that the crisis disrupted every aspect of life. Research from before the pandemic generally suggested remote work improves worker performance—though it often included workers who volunteered to WFH, potentially biasing the finding.

For a clearer look at the effect of RTO policies after the pandemic, two business researchers at the University of Pittsburgh examined a sample of firms on the S&P 500 list—137 of which had RTO mandates and 320 that clearly did not between June 2019 and January 2023. The researchers collected publicly available data on each company, including financial data and employee reviews. They then looked at what factors were linked to whether a firm implemented an RTO policy—such as the company’s size, financial constraints, and CEO characteristics—as well as the consequences of the RTO mandates—employee satisfaction and financial metrics of the firms.

Overall, the analysis, released as a pre-print, found that RTO mandates did not improve a firm’s financial metrics, but they did decrease employee satisfaction.

Drilling down, the data indicated that RTO mandates were linked to firms with male CEOs who had greater power in the company. Here, power is measured as the CEO’s total compensation divided by the average total compensation paid to the four highest-paid executives in the firm.

Before the analysis, the researchers hypothesized that RTO mandates may be used to blame employees for poor firm performance. But, companies that have institutional ownership—such as hedge funds or endowments—would not fall for such a “blame game” and would thus would be less likely to implement an RTO mandate. The data supported those hypotheses. Firms with weaker stock performance before employees were able to return to the office were more likely to enforce RTO mandates. However, institutional ownership decreased the probability of RTO mandates.

Although CEOs often justified RTO mandates by arguing it will improve the company’s performance, “Results of our determinant analyses are consistent with managers using RTO mandates to reassert control over employees and blame employees as a scapegoat for bad firm performance,” the researchers concluded.

Unsurprisingly, the researchers also found that RTO mandates were linked to decreases in employee satisfaction. Specifically, after an RTO mandate, employees’ ratings significantly declined on overall job satisfaction, work-life balance, senior management, and corporate culture. But their ratings of factors unrelated to RTO did not change, indicating that the RTO mandate was driving dissatisfaction.

The study has limitations, including a short time frame to look at long-term outcomes of RTO policies and a time frame that overlapped with a labor shortage. Worker responses may be different in a tight labor market. Still, the study adds some data to the ongoing debate—and feuds—over RTO policies.