Zoom Gave Up On Remote Work — But Remote Work Was Never The Problem

Zoom, along with other prominent companies like Google, Amazon, and Apple, recently announced a return to the office (RTO) policy, requiring employees living within 50 miles of an office to come in for two days a week. This decision has led to questions about whether remote work is truly feasible, especially when the company behind the world's most popular remote work tool is implementing an RTO policy. The answer, however, is yes - remote work can be successful, but it requires certain conditions to be met.

Remote work thrives when there is a strong commitment to culture, investment in the workplace community, and clear communication of norms. In 2020, when the pandemic forced a mass adoption of remote work, two distinct camps emerged. Some companies saw remote work as a revelation, enabling them to become more agile, productive, and better able to maintain work-life balance. These companies embraced a "work from anywhere" policy and experienced improved business performance as a result.

On the other hand, many companies struggled with remote work. Teams became disconnected, innovation declined, and employees felt isolated and disengaged. This led to a trend of "quiet quitting" and increased attrition. Tech companies, in particular, faced layoffs and budget cuts during the economic downturn, further impacting morale and the workplace community. Zoom, which also underwent a reduction in workforce, falls into this latter camp.

The success of remote work depends on the company's culture. Companies that thrive in a remote work environment meet certain benchmarks for a healthy culture. For example, fully remote small and medium-sized businesses achieved higher scores in culture metrics compared to in-office or hybrid companies. Fully remote teams also exhibit higher rates of employee engagement. Clear norms and expectations for distributed work are important, as successful remote teams establish and codify these guidelines. Trust and appreciation from managers play a significant role as well, with regular check-ins, clear goal-setting, and expressions of gratitude contributing to a strong team culture.

Teams that struggle with remote work may expose underlying flaws in their organizational structure and norms. Companies with low trust, engagement, and mismanagement prior to remote work are likely to face challenges even if they require a return to the office. Statistics show that the majority of remote-capable employees want to continue working remotely at least part of the time. Companies with mandatory return-to-office policies may face higher attrition rates and recruitment difficulties.

For companies considering a return to the office, it is crucial to recognize that investing in building a remote culture is still possible and worthwhile. The benefits of remote work, when embraced successfully, are significant. Conversely, companies that neglect this opportunity may face unforeseen challenges and costs. This is evident from the backlash faced by companies like Zoom, Amazon, and Google, who are already dealing with budget cuts, restructuring, and a challenging business climate due to their RTO mandates.  

Charles Schwab says it is preparing to reduce both its headcount and real estate footprint in a series of cost-cutting measures aimed at streamlining operations.

The San Francisco-based brokerage giant reported in a Securities and Exchange Commission filing that the moves were "directly related to the integration of TD Ameritrade," which Schwab acquired in 2020.

Charles Schwab logo displayed at a location in the financial district in New York, Mar. 20, 2023. The company announced in an SEC filing Monday it plans to slash jobs and its real estate footprint as part of a plan to streamline operations. (Reuters/Brendan McDermid / Reuters Photos)

Schwab said the company is looking to close or downsize some of its corporate offices, and "plans to reduce its operating costs primarily through lower headcount and professional services." 

In response to FOX Business's request for comment, the company said in a statement, "We have said, we intend to take a series of actions this year and into 2024 aimed at removing cost and complexity from the firm, including reducing our expense base and streamlining our operating model."

TD Ameritrade logo seen in San Francisco. Charles Schwab acquired the discount brokerage in 2020 for $26 billion. (Alex Tai/SOPA Images/LightRocket via Getty Images / Getty Images)

Schwab did not say how many jobs might be impacted by the move, but added, "This will result in eliminating some positions in the coming months, mostly in non-client facing areas.  We don’t yet have specifics to offer on how many positions will be eliminated."

Ticker	Security	Last	Change	Change %
SCHW	THE CHARLES SCHWAB CORP.	59.40	-0.12	-0.20%

Charles Schwab Corp.

According to the filing, the company expects to save at least $500 million a year through these cuts but expects to pay as much as that in employee compensation benefits and facility exit costs when they occur.

The layoffs will likely happen before the end of the year, the filing said, while the real estate exit costs will likely carry into 2024.

According to a recent survey conducted by ResumeBuilder.com, it was found that 36% of hiring managers admit to lying to job candidates in some capacity. Out of this group, 75% admitted to lying during interviews, 52% lied in job descriptions, and 24% lied in the offer letter. However, it is important to note that only 24% of those who lied claimed to do so most of the time, while 25% stated that they don't lie frequently.

Stacie Haller, the chief career advisor at ResumeBuilder.com, expressed concern about this trend, stating that lying to candidates undermines an organization's integrity and is detrimental to its success. Haller emphasized that candidates make decisions based on the information they receive, and deceit ultimately leads to negative outcomes for both the company and the candidate. Rather, honesty not only upholds an organization's reputation but also plays a crucial role in fostering success for both the company and the individuals it aims to attract.

The survey also identified the specific areas where hiring managers tend to lie. Among those who admitted to lying, 40% did so about the role's responsibilities, 39% about growth opportunities at the company, and 38% about career development opportunities. Other areas where lies were prevalent included company culture, benefits, and the company's commitment to social issues.

Interestingly, the survey revealed that among the hiring managers who admitted to lying, a significant majority (92%) claimed that they have had candidates accept a job offer despite being lied to. Additionally, 55% stated that they have experienced employees resigning after discovering they were deceived during the hiring process.

The survey conducted by ResumeBuilder.com involved 1,060 hiring managers and took place on August 2nd.