Yahoo Finance Live examines a report outlining the upward mobility paths for in-office and work from home jobs.
- Welcome back. Now, working from home has its perks, but it also has its downsides if you're trying to climb the corporate ladder. Now, JP Morgan CEO Jamie Dimon said while telecommuting might be fine in certain roles, people in the upper ranks cannot lead from behind a desk or in front of a screen. And the research actually supports that. A study from Rensselaer Polytechnic Institute and Northeastern University showed that remote and non-remote workers earn the same number of promotions, but the salaries grow slower if you work from home. And it does make sense. You miss a little that natural water cooler interaction that could really prompt some ideas that help you get ahead. Dave, what do you think?
- No question about it. I think the research will play out that there are far more promotions down the road for those that do return to the office. It's little thing they call proximity bias. If you have that access to the boss, if you're able to be a leader or a collaborator and someone you see around the office taking charge, there's no question about it. You can only do so much when you are working from home.
What you see, though, with Gen Z is they had a survey that showed these kids, yes, you will have a better chance of promotion if you return to the office, and they still said we'd choose work flexibility, working from home over career advancement. That's what'll be interesting to see down the road, Seana.
SEANA SMITH: Yeah, Dave, I wouldn't be surprised if some of those Gen Z-ers start to change their mind as their bills go up, as they start to maybe have a family in a couple of years. They're going to be willing to maybe compromise on that flexibility and go into the office, get a promotion, and then, of course, make a little bit more money. It doesn't come as a huge surprise, like you guys are saying.
Close proximity, you're in front of the boss. He's more likely to give you more responsibility. You're more likely to develop relationships with other executives, maybe be introduced to executives that you wouldn't necessarily know if you worked from home. So no surprise there and it's a warning to those people because, what, the studies that we've been looking at, 30% to 40% of people are returning to work, meaning the majority are still out of the office. So maybe we might see a wave of people returning over the next couple of months. I don't know. We'll see.
- Well, it's interesting because you talked about the generations. It might be that depending on where you are in your career, perhaps the advancement might be more important to you than the money. But as you were saying, Seana, with inflation where it is, it's going to start chipping away at a certain point.