As the coronavirus pandemic keeps large parts of the world under various stages of lockdown, working from home is the default setting for many people.
Work-from-home expert Chris Herd, who spoke to 2,000 companies over 12 months, laid out why he thinks there is now no way back, despite the present reliance being dictated by the pandemic.
Mr Herd, founder and chief executive of Firstbase, a company that helps employers to go office-less, said that the biggest hurdle for working from home was managers trusting employees to be professional and capable of working without distraction.
In a Twitter thread he outlined reasons why working from home will become the norm, even after the pandemic subsides.
Fully distributed: 30 per cent of the companies we talk to are getting rid of the office entirely and going remote-first. Companies doing this have seen their workers decentralise rapidly, leaving expensive cities to be closer to family.
Cut costs: The second reason they are going remote-first is because it lets them be far more cost-efficient. Rather than spending $20,000/worker/year on office space they can provide the best remote set-up on the planet for $2,000/worker/year.
Remote burnout: Productivity in the companies we've spoken to has gone through the roof. Their biggest concern is that workers burn out because they are working too hard. They are actively exploring ways to combat this.
Personal choice: The smartest people I know personally are all planning to work remotely this decade. The most exciting companies I know personally all plan to hire remotely this decade. Ninety per cent of the workforces we've spoken to never want to be in an office again full-time
Async work: is the thing that organisations are struggling with most. The majority of companies have replicated the office remotely and it is causing strains that are beginning to show.
Universal problems: Size of the organisation does not matter, every company is dealing with the same thing. We spoke to early-stage companies, publicly listed tech companies, through to legacy incumbents with hundreds of thousands of employees. All will be more remote.
Pollution reduction: Many companies we've spoken to care massively about the environmental impact that eradicating the office, and the commute, will have – 108 million tonnes less Co2 every year.
Remote dilemma: A few companies we've spoken to have decided to be more remote than they initially intended because their competitors already did it. There is a fear in companies that if they don't go remote they will lose their best people to their competitors.
Remote fear: Most companies aren't scared about the quality of work that will be produced. They are scared about intangible things they can't measure. 'Quality of communication' and 'collaboration in person' and 'water cooler chat'. Many realised these were excuses.
Written over spoken: Documentation is the unspoken superpower of remote teams. The most successful team members remotely will be great writers. Companies are searching for ways to do this more effectively. Tools that enable others to write better will explode.
Flattened orgs: Middle management is in trouble, an unnecessary bottleneck which serves no tangible purpose inside async organisations. Companies need coaching and facilitators to maximise organisational effectiveness.
Remote laws: Many companies are beginning to operate under the assumption that the choice to work remotely will become a legal right. This will give workers the option to choose where they work, and many companies are acting before they are forced.
Meeting death: Wasting hours travelling to meetings will end almost entirely. The benefits of in-person are eroded by the benefits of not travelling. Conferences and quarterly networking events will be where people cultivate and maintain in-person relationships.
MATCH INFO
Uefa Champions League final:
Who: Real Madrid v Liverpool
Where: NSC Olimpiyskiy Stadium, Kiev, Ukraine
When: Saturday, May 26, 10.45pm (UAE)
TV: Match on BeIN Sports
Who's who in Yemen conflict
Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government
Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council
Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south
Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory
MATCH INFO
Manchester United 6 (McTominay 2', 3'; Fernandes 20', 70' pen; Lindelof 37'; James 65')
Leeds United 2 (Cooper 41'; Dallas 73')
Man of the match: Scott McTominay (Manchester United)
WHAT IS A BLACK HOLE?
1. Black holes are objects whose gravity is so strong not even light can escape their pull
2. They can be created when massive stars collapse under their own weight
3. Large black holes can also be formed when smaller ones collide and merge
4. The biggest black holes lurk at the centre of many galaxies, including our own
5. Astronomers believe that when the universe was very young, black holes affected how galaxies formed
EA Sports FC 26
Publisher: EA Sports
Consoles: PC, PlayStation 4/5, Xbox Series X/S
Rating: 3/5
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
The specs
Engine: 4.0-litre V8 twin-turbocharged and three electric motors
Power: Combined output 920hp
Torque: 730Nm at 4,000-7,000rpm
Transmission: 8-speed dual-clutch automatic
Fuel consumption: 11.2L/100km
On sale: Now, deliveries expected later in 2025
Price: expected to start at Dh1,432,000
Company profile
Company: Rent Your Wardrobe
Date started: May 2021
Founder: Mamta Arora
Based: Dubai
Sector: Clothes rental subscription
Stage: Bootstrapped, self-funded
Islamophobia definition
A widely accepted definition was made by the All Party Parliamentary Group on British Muslims in 2019: “Islamophobia is rooted in racism and is a type of racism that targets expressions of Muslimness or perceived Muslimness.” It further defines it as “inciting hatred or violence against Muslims”.
The Greatest Royal Rumble card as it stands
50-man Royal Rumble - names entered so far include Braun Strowman, Daniel Bryan, Kurt Angle, Big Show, Kane, Chris Jericho, The New Day and Elias
Universal Championship Brock Lesnar (champion) v Roman Reigns in a steel cage match
WWE World Heavyweight Championship AJ Styles (champion) v Shinsuke Nakamura
Intercontinental Championship Seth Rollins (champion) v The Miz v Finn Balor v Samoa Joe
United States Championship Jeff Hardy (champion) v Jinder Mahal
SmackDown Tag Team Championship The Bludgeon Brothers (champions) v The Usos
Raw Tag Team Championship (currently vacant) Cesaro and Sheamus v Matt Hardy and Bray Wyatt
Casket match The Undertaker v Chris Jericho
Singles match John Cena v Triple H
Cruiserweight Championship Cedric Alexander v tba
Lexus LX700h specs
Engine: 3.4-litre twin-turbo V6 plus supplementary electric motor
Power: 464hp at 5,200rpm
Torque: 790Nm from 2,000-3,600rpm
Transmission: 10-speed auto
Fuel consumption: 11.7L/100km
On sale: Now
Price: From Dh590,000