There are a number of seen and unforeseen benefits to the remote work business model. Thanks Covid!
I’ve been saying this to a lot of people since March: the cat is out of the bag on working remotely. Personally, I think that hybridization models are the most likely scenario moving forward because there are accountability and socialization issues that simply cannot be resolved with a pure play remote-work model.
What does a hybridization model mean for the firms which move forward with this model? Increased profit.
Why? Two reasons: The first is that the hybridization model provides unique wellness advantages for employees. The second is that hybridization models will allow firms to scale down their leases to smaller, more efficient spaces and save on general business.
If I am right (only time will tell), then the new business model will free up cash to make investments back into the firm or return some of that value to stakeholders.
Second and third order consequences of less people on the roadways, especially during traditional high-traffic times of the day, could potentially: 1) Reduce the demand for gasoline, thus putting more permanent downward pressure on prices (the alternative is possible, as well, due to overcompensated production cutbacks), 2) reduce property and casualty claims on the roadways which will lead to downward pressure on vehicle insurance costs (the alternative is improbable due to the insurance model), 3) massively scale back the combustion of fossil fuels in industrialized countries as people are both driving less AND aren’t burning energy sitting at a near standstill in traffic for those who still utilize the roadways (the alternative is near-impossible), and 4) reduced roadway maintenance costs for state and local governments and, thus, downward pressure on vehicle registration (tax) and gasoline excise taxes (the alternative is improbable everywhere outside of CA).
Other consequences include increased family bonding which could lead to a reduction of delinquent behavior and an increase in academic achievement, both of which put downward pressure on the criminal justice system.
Ultimately, it means happier people in a healthier environment (stakeholders), increased profits for firms, and increased savings/investment potential for all workers (even those who still have occupations which require their physical presence). It’s a move toward a more efficient economy.
Afterthought: I keep hearing that "everything has changed" in so many spaces, but what if Covid-19 didn't change anything? What if it only sped up transitions that were already in their infancy? Working remotely was always a high-risk concept to firms, but now they know that it can produce desired outcomes. As we continue on in the post Corona world, we will continue to work out all the kinks and remote work will finally be in the forefront of businesses which want to free up cash for other projects.
Navy veteran, MBA (University of La Verne), federal VA employee, and three-term American Legion Post Commander. Writing about business, psychology, strategy, and privacy since 2020.
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