Like Elon Musk, 1 in 3 bosses admit they are pushing RTO because they're so upset about wasting money on all those empty desks
Like Elon Musk, 1 in 3 bosses admit they are pushing RTO because they're so upset about wasting money on all those empty desks
One in ten of those firms admitted that they plan to scrap the mandates entirely after their leases expire.
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Anyone who does not understand the sunk cost fallacy should not be in management.
You've spent $x on office space. You can:
A. Use it, and make your employees hate working for you or
B. Let it go unused, and your employees are happier to continue working for you.
The money is spent either way. The only difference is morale, which does in fact directly contribute to your bottom line.
C. Get rid of what you don't need so that everyone is happy
When you are locked in to a 3/5/10 year lease for the space, that's not actually an option. Most leases signed pre covid should be up by now but clueless management probably renewed anyways.
And the really big corporations own their buildings. You think the company locked into leases are mad? The companies who own the building are pissed! Some have a multi million dollar building that's losing value faster than the speed of light.
Good. Turn that shit into housing.
No shit. But this is America... You already know that proposition is dead on arrival.
Are sublets not an option?
You mean sell it for money and actually make more profit while everyone is happy? Preposterous!
C. Sublet out the property and make back the cost of the lease or even a bit of profit.
They can't depreciate the assets and use them as a deduction if it doesn't count as an office expense. That only qualifies if a threshhold minimum number of workers spend a threshhold minimum amount of time in the office.
Or c, keep just enough office space to create rolling “layoffs” as people are asked to return to the office.
Step 1: Hire staff
Step 2: Train staff to do job
Step 3: COVID! Oh no! Everyone work from home.
Step 4: ???
Step 5: Fire staff to save money.
Step 6: Profit.
It's nice to find the rant in your head written out. A previous employer of mine dropped two properties in favor of a store front.
There have to be relationships at play or something like that. Or saving face. Maybe investments?