Nearly three and a half years after the pandemic, various sectors have normalized, from bustling cinemas to packed airports.
However, the corporate sphere remains a puzzle. While Asia and Europe see a quicker return to offices, the Americas lag, with differences driven by early pandemic responses and cultural expectations.
According to a CPA Practice Advisor report, in Asia, the initial containment of COVID-19 made returning to offices smoother.
On the other hand, Europe’s work patterns differ considerably: while the U.K. has embraced remote work, France leans towards office presence.
However, Europe is progressively adopting laws supporting flexible schedules.
Conversely, the U.S. leaves the transition primarily to individual companies, resulting in diverse policies. As companies like Amazon and Zoom enforce partial office returns, the question looms:
What is the future of work?
Diverse Workplace Dynamics
While Asia and Europe lean toward office returns, cultural and infrastructural elements play a role.
In the report, Phil Ryan of JLL City Futures highlights the importance of reliable public transport and living conditions.
Hong Kong’s efficient transport and compact living spaces favor office working, whereas large American home offices offer a comfortable remote work environment.
Moreover, job types influence work preferences.
Per the report, INSEAD professors Mark Mortensen and Henrik Bresman observe that knowledge workers in tech and finance roles are better suited for remote work.
This is corroborated by Stanford research, which indicates such professionals in the U.S. work remotely almost a full day more weekly than their peers in other sectors.
Real Estate Implications
The changes in work patterns impact the commercial real estate market substantially.
The report shows a McKinsey estimate, which states potential losses of up to $1.3 trillion in real estate value in major cities by 2030 due to pandemic-induced shifts.
Urban regions with heavy office densities, like New York and San Francisco, could witness a more significant slump in demand.
Legislative Interventions
Europe leads in legislative efforts shaping work’s future.
Propelled by the E.U.’s 2021 “right to disconnect” initiative, several European nations are legislating remote work and work-life balance.
This trend extends globally, with countries like Colombia and Canada adopting similar measures.
Digital Nomads on the Rise
The report noted that the pandemic birthed a surge in digital nomads, with cities like Lisbon becoming popular due to attractive visa policies.
However, as property prices soar and visa perks recede, digital workers are exploring destinations outside Europe and the U.S., with Asian cities like Tokyo and Seoul emerging as top choices.
U.S. Companies Redefining Norms
Many U.S. firms are pushing for a return to the office this Labor Day.
However, the sentiment remains that the future is about more than reverting to old ways.
As Phil Kirschner of McKinsey points out in the report, the work environment has irreversibly transformed.
It seems the future of work is not about “going back” but moving forward to an adaptive, flexible, and globalized corporate world.
The aftermath of the pandemic has paved the way for a new paradigm, where work is not merely a location but an activity defined by innovation, adaptability, and employee well-being.
Learn more in the entire CPA Practice Advisor report.
