Let’s talk a bit about work – I noted three distinct stories.
First, Research shows that working from home has become the new norm for many Americans, with the same percentage of employed people doing remote work in 2023 as in 2022. As reported in the Guardian, Working from home doesn’t impact productivity and can even help companies save money. Hybrid work, balancing the positives and negatives of remote work, is becoming more popular, and companies are embracing flexibility in allowing employees to work remotely during slower months. This trend is expected to continue, with potential benefits including increased loyalty, reduced turnover, and higher employee engagement.
From Levels, equity grants with unique vesting schedules are becoming more common in the tech industry as companies aim to attract talent and save money. Companies like Amazon, Google, Uber, Coupang, ByteDance, and Stripe have adopted non-traditional vesting schedules, offering different percentages of equity grants over varying time periods. Some companies even allow candidates to choose their own vesting schedule. These unique schedules aim to reduce immediate RSU burn for the company and provide flexibility in rewarding high performers. It is important for individuals considering offers with unique vesting schedules to understand the implications and negotiate their compensation package accordingly.
Finally, Business Insider has new findings from Cambridge and Salford Universities in the UK. A 15-month trial of a four-day workweek at a UK council resulted in reduced staff turnover, improved worker mental health and motivation, and cost savings. The trial, involving 697 employees, showed improved or stable performance in 22 out of 24 areas assessed. The council saved £371,500 ($476,980) and saw an increase in external applicants for open roles. The only drawbacks were a mild decline in rent collected from social housing and a slight worsening in the average number of days to re-let housing stock.
Why do we care?
Work’s reorganization is an opportunity. With staff shortages rampant, differentiating your organization with these benefits is critical. Remote work, four day work weeks, or different compensation models. I’ll note that many of these equity changes in tech are not employee-friendly. That’s the opportunity to zig while others zag, and take advantage of their squeeze.