Canadian News October 26, 2020
The State of the Promo Workplace
All remote? All in-person? Both? Promotional products companies are making long-term decisions for their workforces now that may have ramifications for their business model.
It was the bane of every 9-5 employee’s social media feed: ads with happy, smiling people sitting on the beach in Hawaiian shirts, shorts and flip flops touting online courses on how to build a business that you could run from anywhere with nothing more than a laptop and internet access. Now, millions of people have had the same experience for almost eight months (though they might be settling for their back deck). It’s just one of the major shifts that the COVID-19 pandemic has caused in personal and professional lives.
Remote work certainly existed before COVID, but millions of people were still expected to come into the office at least five days a week. As a result, the demand for housing in desirable, thriving areas served real estate markets well but also created challenges. In February of this year, before the shutdowns, the Atlantic reported in an article titled “The Great Affordability Crisis Breaking America,” that median asking price for a single-family home in San Francisco had reached an eye-watering $1.6 million, which meant a monthly mortgage payment of $6,000 even with 20% down. Meanwhile, rent in New York City had hit almost $1,800 a square foot. Residents paid for the proximity to jobs and vibrant centers of culture, but something had to give.
COVID may have been it. Today, once-bustling metropolitan centers are at a standstill because of a lack of commuters and tourists. Thousands of apartments are empty. Because of the success of remote setups, people don’t need to live within driving distance of an office to stay employed anymore. As a result, they’re actively relocating to more affordable areas outside major cities, where they can enjoy more space and more bang for their buck.
Last month, CNN reported that, according to data from real estate brokerage Douglas Elliman and real estate appraisal and consulting firm Miller Samuel, signed contracts for sales of condos and co-ops in Manhattan fell 60% in July while contracts for homes in areas outside the city have exploded. In Westchester County, Long Island, for example, they rose 112%.
Millions of people now have more autonomy to make personal lifestyle decisions, and many will expect that their employers be a part of that by offering remote work and flexible schedules. Microsoft just announced a format in which most employees have flexible home/office schedules; they can even request permanent remote work or relocation, with manager approval. This will remain in effect until at least July 2021.
Microsoft is extending its remote-work policy to July 2021 'at the earliest' https://t.co/JfoKZhcwte
— Business Insider (@businessinsider) October 22, 2020
It’s a new reality that nearly every company will have to contend with, including promo firms, which are now working to create long-term plans for their workforces in the midst of ongoing uncertainty.
But it’s put them in a tight spot; they’ve had to make decisions without precedent over the past several months, says Diane Danielson, chief strategic advisor and founder of Future Proof Research Collaborative, a think tank and consultancy in Boston and Biddeford, ME, that specializes in the future of work.
“Companies have to survive without a model,” she says. “It’s going to be a real struggle, so they’ll have to go back to core values.”
The Benefits of All-Remote
Smooth transitions to remote work combined with months’ worth of savings in overhead have convinced some companies that it’s time to get rid of the office space and keep everyone remote on a permanent basis. Sabrina Casas-Avila, CEO of Brand Panacea Enterprise in San Antonio, says they’ll be leaving their corporate office space, and so will the team at Accurate Printing & Promotions in Gilroy, CA. President/CEO Mark Zappa was pleasantly surprised at how efficiently the transition to work-from-home went in March. Employees have been required to remote into a central server so management can track workflow and activity. In June, Zappa announced to employees that the setup would be permanent because of cost savings.
“Some were sad that we’d no longer be together in person,” he says. “But it turned out to be a blessing.”
Danielson says getting rid of an onerous 30-year lease on a building can be a boon for companies. Plus, without stressful commutes, employees’ overall wellbeing may improve. Companies will also save on sick leave expenses, with everyone already at home. However, the office space has centralized technology that needs to be given to remote employees as well.
“Not everyone has the same access to tech, so companies will need to offer stipends and be flexible about that,” she says. “That may include internet access, cybersecurity and collaborative tools.”
Managing remote workforces looks different from in-person teams, particularly when it comes to oversight, communication, training and relationship-building. Lolita Carrico, a digital marketing expert, business strategist and CEO of Lolita Carrico LLC and online entrepreneur course Ready for Launch in Los Angeles, says she’s already seeing an uptick in HR departments hiring remote workforce management consultants that can help them for the long term. New hires starting a job in an all-remote environment don’t benefit from in-person interaction that helps them build rapport with their new colleagues. Consultants can help companies figure out how to give them a quality on-boarding experience and continued interaction with others.
“People want the ability to grow in a remote environment,” she says. “Companies will have to continue supporting new hires’ development. Meanwhile, employees shouldn’t just submit resumes. They need to figure out if the environment a company has is something they’re capable of adapting to.”
And all those savings on overhead and wellness costs? Carrico suggests using them to give everyone a stipend to optimize their home office with equipment (like standing desks and ergonomic chairs) along with digital tools, ongoing tech expenses and training.
“The overhead savings isn’t just to save money,” she says. “Companies need to reinvest it in their people.”
The Importance of In-Person Interaction
Meanwhile, other promo firms plan to bring employees back once it’s safe, or have already begun the process. The savings in overhead simply haven’t outweighed what’s missing with the lack of human interaction in recent months. Gregg Emmer, vice president and CMO at Top 40 distributor Kaeser & Blair (asi/238600), headquartered in Batavia, OH, says they’ve always had members of their team who were full-time remote workers. At the start of the shutdowns, everyone was home. Now they’re bringing back staff on a staggered schedule to allow for frequent cleaning and proper distancing, with the goal of welcoming everyone back in the near future.
“The camaraderie, speed and accuracy of communication, interaction in in-person meetings and professional setting are essential for operating at the highest levels,” says Emmer. “We’ll certainly have more remote workers than in the past, but it’s very unlikely we’ll abandon the office completely.”
Voshte Demmert-Gustafson, president of Color Graphics in Olympia, WA, says she has to open the office back up because she relies on foot traffic to drive business. “It’s also easier to maintain company culture and team dynamics when we’re in person together,” she says. “We also have production here, so we’re staying put.”
At Talbot Promo (asi/341500) in London, ON, many in-person employees are already back in the office, says Steve Levschuk, president and CEO, though it remains a “fluid” situation. “We own our buildings and don’t have any plans to sell them,” he says. “We currently have extra warehouse space, so we may rent that out if our program business remains soft. All our staff, with the exception of production, have the capability to work from home, but our preference is to have our staff here at our facilities.”
Top 40 supplier Spector & Co. (asi/ 88660) in Saint-Laurent, QC, welcomed the company management team back to the office on Oct. 19, and will offer everyone a hybrid model of in-office and remote work for now, with the ultimate goal of bringing everyone back as soon as restrictions lift.
“Today [Oct. 19] is the first day that management is back,” says President Rob Spector. “It’s definitely nice to see smiling faces and the lights on.”
Marilu Ballina, co-owner and manager of 1 to 1 Printers in Houston, says they were deemed essential early on and never closed during the pandemic. That’s the setup she prefers, since remote work just isn’t the same as in-person collaboration, she says.
“Team-building and true relationships can’t be built on Zoom alone,” she says. “Innovation and efficiency are largely dependent on our ability to communicate, brainstorm and tackle projects together throughout the day. A few tasks can be done from home, but we really shine at the office.”
The Freedom to Choose
Other companies plan to take the middle route and keep a central office while allowing employees to elect where they want to work. HP2 (asi/217284) in Phoenix, AZ, is one such firm. In the meantime, their office is now for sale and they’re planning to downsize. “The savings in overhead [from these past few months] will be put into another building when we find a new one to buy,” says founder Marc Hawkins.
If a job can be done remotely, allowing an employee to choose in-office or remote work is sure to be a way to attract and retain talent, says Danielson. “Companies will need to provide their employees with autonomy and flexibility over where, when and how they come to the office,” she says. “They’ll also pay employees what the job is worth and won’t institute separate pay scales based on who comes in and who’s remote.”
At Boost Engagement (asi/326300) in Dayton, OH, it was rare that anyone worked remotely pre-COVID. Now everyone but the warehouse team continues to operate out of their homes. “Once we’re on the other side of this and all restrictions are lifted, we’ll continue to offer the flexibility to work remotely,” says CEO Dawn Conway. “But we plan to maintain our physical office.”
To keep hybrid and all-remote teams connected, Carrico says companies will need to invest in robust digital collaboration tools and video conferencing with features like breakout rooms and virtual whiteboards. They should also be used to build rapport among coworkers during “fun” meetings. “Developing relationships helps with productivity,” she says. “People need to feel connected. Culture can be hard to build in a remote format.”
Cost savings on overhead will also go more frequently to “on-sites” versus “off-sites,” she adds. While colleagues once went to retreat events somewhere other than the office, now their in-person gatherings will happen at the company’s facilities in order to make critical business decisions, go through ongoing training and team-build.
The combination of remote and in-office presents a new frontier for HR departments and hiring managers, who will need to look for “emotionally mature” people who can manage themselves and others at a distance, says Danielson. Everyone needs to be clear and transparent, and to over-communicate, because “we’re not randomly bumping into each other at the office,” she says.
Furthermore, expect that new hires will look for flex time to be part of the position, not a privilege based on title or years of service. “Some employees need the structure of the workplace,” says Danielson, “but everyone will want the autonomy to choose.”
As companies figure out how to move forward and keep employees satisfied, there’s going to be a bit of transitional tumult until the fog clears and the post-pandemic workplace landscape becomes more apparent. “Planning and re-organization steps are prudent and a must, after months away from a structured office environment,” says Wafa Kanan, CEO of Unique Image Inc. in Northridge, CA. “We’re at a fork in the road and whatever decisions we make for our business will be crucial to sustainability and success.”