Should Some Employees Be Allowed to Work Remotely Even If Others Can’t?

SEAN LEWIS, THE CEO of Vallia Energy and Joan Flores, the senior vice president who managed their
corporate space. They had been planning a return to the office for the 3,200 employees who worked at the oil and
gas company's headquarters in Okla-homa City. More than two and a half years earlier, at the outset of the Covid-
19 pandemic, those staff members (around 65% of the workforce) had begun doing their jobs remotely. Though
some had trickled back into the office on a voluntary basis had still not mandated that everyone return. but Sean
worried about the brewing discontent of the workers who had been on-site all along. they didn't understand why
the office staff had stayed remote for so long. They were beginning to grumble about what they perceived to be a
double standard: They were often offshore or in the field for weeks at a time, while their colleagues had the luxury
of being home with their families. Sean and Joan they wanted to come up with a way to balance work flexibility
with in-office collaboration. they had settled on a hybrid solution: requiring all employees to return to the office
at least four days a week, while allowing people to apply for exemptions.

Rethinking the Plan

Sean says the labor market has never been tighter, and many people love working from home so what if they quit
instead of accepting the new policy? Sean has tried to bring Vallia into the 21st century by making it digital and
mobile by diversifying beyond fossil fuels. All this could be derailed if the best people are lost and others cannot
be recruited. When Joan and Sean had first started mapping out a plan, they'd envisioned requiring everyone to be
in the office two or three days a week. But the company had reduced its real-estate footprint early in the pandemic,
renting out a wing of its building to a medical-testing start-up. To accommodate Vallia's returning employees in
the space that remained available, Joan had proposed creating a "hot desk":or hoteling system whereby employees
could reserve desks when they needed them. That idea had sparked immediate pushback: Many people wanted a
more permanent workspace. Joan had then suggested giving staffers dedicated but shared desks or offices and
creating an online tool so that everyone could see which colleagues were going to be on-site on a given day. But
some employees objected to sharing their workspaces. In fact, several department heads had told Sean that if
working from home a few days a week meant losing their private offices, they'd rather come in every day. People
had also pointed out that Vallia would lose the benefits of spontaneous collaboration without a common schedule
for everyone. Sean and Joan had shifted course again. They planned to bring all employees back four days a week.
Both of them had been feeling confident about the decision-" Joan said. "It's legit to worry about folks resigning
because we pull them back in. But we also have to consider whether keeping employees remote particularly new
hires and young staff will leave them withering on the vine." At Vallia, Sean was emphasizing the firm's digital
transformation and its efforts to reduce carbon and methane emissions and elimi- nate flaring, a technique blamed
for air pollution and methane leakage at small drill sites. Under his leadership, the company also touted its
commitment to diversifying its workforce and supporting inclusion and equity programs in the community.

External Pressure
In his office later, Sean fielded a call from Dean Johnson, the head of the local chamber of commerce. Dean
expresses his surprise after hearing the decision to cancel Vallia's return to headquarters.” "Not cancel," Sean
said, chuckling. "Postpone." "Well, you know how disappointed Lam, speaking as the voice of the OKC
business community," Dean replied. "You're an anchor employer here, and your people are the primary
customers for dozens of small businesses." Vallia's presence had helped the once- stagnating metropolis become
one of the 25 largest cities in the country. "But I have to think about the long-term sustainabil- ity of my
workforce," Sean contin- ued. "It won't do anyone any good if all my staffers quit and take the 10 grand to
move to Tulsa. all of us at the chamber and City Hall we're not sure OKC can take the hit if your offices stay
empty." Both men were well aware of the recent Wall Street Journal story indicating that remote work had
become a credit risk for many cities because of lower tax bases in their downtown cores.

More Opinions
Sean gathered his senior leaders for a virtual meet- ing and told them he was considering continuing with work-
from-anywhere for at least the next quarter. He acknowledged everyone's desire for certainty about a return-to-
office plan but explained that he'd rather wait and be right than rush and be wrong. "We're still paying off loans
on our building, and paying to keep it ready," said Jake Brown, the head of accounting. "We should at least try
to get more value out of it. Maybe we should keep leasing space to the medical-testing company, or rent out
areas for events or conferences?" Janet Stritikus, who led the back-office administrative roles, shared another
idea: "Many people on my team have worked remotely for a long time, but we come together each quarter for
training, bonding, and sharing of best practices. Sean said. "That could be a good first step. Bill French, the
head of geo science, spoke next: "We're trying to bolster our workforce and recruit a new generation. That
requires building a new culture. But how can we do that when no one knows each other?" "That's exactly why
I'm torn," Sean replied. "We do need to make sure that something bonds us together. But new hires don't want
to be forced into the office. "Coddling them doesn't sit well with my field crews," inter- jected Ted Petersen, the
head of the oil-field and offshore workers. "They resent the hardships they deal with while the office staff gets
to work from home." Please remember that this isn't permanent, Sean replied. "And short-term, perhaps we can
stretch the budget to add more contractors. That would allow some flexibility for our full timers so that things
feel more fair."

The Experts Respond: How should Vallia proceed with plans for in-office and remote work?

 Bracken Darrell is the CEO of Logitech.

To build the right culture, Vallia should still have a headquarters Instead of scheduling employee office days Sean should
focus on creating an environment so attractive that people will want to come in. Then he should let teams decide for
themselves what the right mix of on- and off-site work should be. Organizations can make their work- places inviting by
providing the best possible tools Additionally, the design should incorporate small, enclosed spaces for people to make
private calls or do heads-down work.. So balance and flexibility are key-as is clear communication. Sean should
emphasize to his entire workforce that the roughnecks' on-site labor continues to be mission-critical, generating the
capital that Vallia needs to build a new future. He should explain why the OKC headquarters will remain an important
gathering place-and a commercial hub in a thriving city. And he should reinforce the idea that the company's success
depends on a collaborative spirit and everyone's contributions

 Katarina Berg is the CHRO of Spotify.

Sean should shift Vallia Energy to a distributed-first model, permanently allowing people to work from anywhere. Why?
Because work is something you do, not a place you come to, and most chief executives, including Sean, are already
leading dispersed workforces.Of course, it was the pandemic that changed my mind. Like other technology companies,
we shifted to all-remote work, and employees told us that they cherished the newfound flex- ibility and autonomy.
Today most employees choose where and when they work; we ask only that they state their preference for an "office
mix," in which they work mainly from the office. or a "home mix," in which the office is available to them but isn't their
primary work location. Sean's decision is more complicated, as Vallia has a class of employees who don't have the option
of working from home. Transparency and sharing the reasoning behind all decisions are key to keeping employees
engaged. Though we believe that our transition has been a success, we continue to seek feedback from employees. and
we've partnered with academics from Stockholm University to measure long-term results. Sean will want to do
something similar at Vallia , paying particular attention to sentiment among the roughnecks . The pandemic was a
discontinuity that opened up a rare opportunity to do things differently. Sean, who seems to have continued to go into
the office himself, is struggling to accept the new reality of work.
Challenges that facing employees

1) Ability to remain creative

Creativity is an essential aspect of productivity. It is a challenge for anyone to be creative most of the time in
the workplace. This is one issue that many workers face, which affects the amount of good work they can
produce.

2) Getting new skills and professional development

Employees tend to face the challenge of learning new skills and advancing in their careers. This challenge, if
not addressed, may affect their job satisfaction.

3) Concerns about technology and innovation.

Keeping up with technological advancement can cause work issues at any level of an organization. Executive
fears about competitive advantage can sometimes result in additional employee pressure.

Steps that company is taking for future development

1) Improve training opportunities.

By developing a company culture of life-long training and development, you'll improve employee retention and
find yourself with an up-to-date and a motivated workforce.

2) Competencies and recruiting the right talent

finding the right people and developing the right skills and competencies is the key to a sustainable future.
Bringing in a consultant with the expertise to find exactly the workers you need would be a wise investment.

Challenges that facing Vallia Energy

1) inflation and Economic Downturn.

2) Increasing Customer Expectations.
3) Accelerated Digital Transformation.
4) The War for Talent Will Intensify.

Summary

More than 3,000 office workers at an oil and gas company in Oklahoma City have been telecommuting since the start of
the Covid-19 pandemic. Many of them love the arrangement, and the freedom to work remotely is also a big draw for
new hires. But there are downsides: Employees who have to be on-site in the oil fields and on drilling rigs are resentful;
collaboration and knowledge transfer are more challenging; costly office space is going unused; and local businesses are
suffering because of the emptiness of the downtown core. The company’s CEO must decide: Should we mandate a
return to the office for everyone? This fictional case study features expert commentary by Logitech’s Bracken Darrell
and Spotify’s Katarina Berg.

Reflections and learnings

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