WEBVTT - Workers Prioritize Culture, Flexibility Over Pay 0:00:00.160 --> 0:00:04.200 This is Bloomberg Business Week with Carol Messer and Bloomberg 0:00:04.280 --> 0:00:08.440 Quick Takes Tim Stinovic on Bloomberg Radio. Well, recently, at 0:00:08.480 --> 0:00:10.879 our Bloomberg Live Work Shifting two point o event that 0:00:10.920 --> 0:00:14.080 Tim and I participated in, there was someone else there. 0:00:14.160 --> 0:00:18.720 Jared's Pitaro. He's corporate VP of Microsoft and Modern Work. 0:00:18.720 --> 0:00:21.239 He provided an update on what they're seeing when it 0:00:21.280 --> 0:00:23.680 comes to how the world is working post pandemic, and 0:00:23.680 --> 0:00:26.680 we've reached out to him several times over the last 0:00:26.920 --> 0:00:30.240 couple of years to figure out what's going on. Yeah, 0:00:30.240 --> 0:00:32.360 they've got some great data. The reports surveyed thirty one 0:00:32.720 --> 0:00:34.879 people in thirty one different countries. It just came out 0:00:34.920 --> 0:00:38.040 a few days ago. Uh. The question is, you know, 0:00:38.560 --> 0:00:41.680 how can we make remote work or hybrid work work 0:00:41.720 --> 0:00:45.720 across different sectors and across different regions. Jared's Pittaro is, 0:00:45.920 --> 0:00:48.639 as Carol mentioned, corporate vice president from Microsoft three sixty five. 0:00:48.680 --> 0:00:51.480 He joins us now. Jared, good to talk with you again. 0:00:51.560 --> 0:00:56.080 Great expectations. Making hybrid work work is the subject of 0:00:56.280 --> 0:01:00.800 your report. What did you learn after surveying thirty people? Well, 0:01:00.800 --> 0:01:02.480 great to be here with you. You know, the big 0:01:02.520 --> 0:01:04.720 takeaway for us is that we're just not the same 0:01:04.760 --> 0:01:08.400 people who went home to work in our expectations about 0:01:08.400 --> 0:01:10.840 what work is, what role plays in our lives, and 0:01:10.959 --> 0:01:13.399 kind of what we're willing to give up for our 0:01:13.400 --> 0:01:16.160 professions and careers has really changed over the last twenty 0:01:16.160 --> 0:01:17.720 four months. I think that was one of the most 0:01:17.760 --> 0:01:20.319 surprising things for me is I looked at the data. Well, 0:01:20.400 --> 0:01:23.880 it's interesting, you know, we're we're finding out to what 0:01:23.920 --> 0:01:27.520 really matters too workers, right, And I think for such 0:01:27.560 --> 0:01:29.760 a long time in our world, Jarred, it was all 0:01:29.760 --> 0:01:31.840 about money and making as much money as you can. 0:01:31.920 --> 0:01:36.240 We know that that's certainly not the case anymore. Yeah, 0:01:36.280 --> 0:01:39.480 that's right. We asked employees, so again, thirty one people 0:01:39.520 --> 0:01:42.520 across thirty one country, so a really nice swath of 0:01:42.560 --> 0:01:44.840 people across the planet, trying to get a sense for 0:01:45.080 --> 0:01:48.080 how their priorities have changed. We asked them, he besides pay, 0:01:48.120 --> 0:01:50.080 what is important to you? Here's what they told us. 0:01:50.160 --> 0:01:53.680 Number one was a positive culture, Number two well being, 0:01:54.160 --> 0:01:58.320 three a sense of purpose and meaning, and four flexible hours. 0:01:58.320 --> 0:02:00.360 So you can see there that there's been quite a shift. 0:02:00.600 --> 0:02:02.880 We also asked them kind of if they changed in 0:02:02.920 --> 0:02:06.600 their attitude towards work of the people we surveyed said 0:02:06.640 --> 0:02:09.240 that they're more likely to prioritize their health and well 0:02:09.280 --> 0:02:12.320 being now overwork when compared to before the pandemic. So 0:02:12.400 --> 0:02:15.800 some big shifts in the mindset. Okay, Jared, So we 0:02:16.040 --> 0:02:18.600 know what you gathered with the survey, We know the takeaways. 0:02:19.000 --> 0:02:22.560 What about the takeaways for managers for companies here, what 0:02:22.639 --> 0:02:24.359 do they need to do in order to make sure 0:02:24.400 --> 0:02:27.280 that in this incredibly tight labor market they're tracking and 0:02:27.280 --> 0:02:30.680 retaining talent. Yeah. One of the things that surprised me 0:02:30.800 --> 0:02:34.079 the most was really the friction that we have set 0:02:34.160 --> 0:02:37.880 up between employees and their managers. Are leaders in particular, 0:02:38.160 --> 0:02:40.640 we found that even though employees want this flexibility that 0:02:40.680 --> 0:02:42.920 we talked about, they're very focused on well being. Over 0:02:43.040 --> 0:02:45.520 fifty percent of leaders told us that they're planning to 0:02:45.520 --> 0:02:47.880 go back into the office five days a week, full time, 0:02:48.200 --> 0:02:50.920 no flexibility. So there is this sense that we're going 0:02:50.960 --> 0:02:52.840 to be set up for a little bit of a showdown. 0:02:52.880 --> 0:02:55.359 To be honest with you, and again, if you're a manager, 0:02:56.040 --> 0:02:57.800 want to think about you know, what to do. We 0:02:57.840 --> 0:03:00.519 think it's important to just understand that minds at Yeah, 0:03:00.520 --> 0:03:01.919 that's right. I think there is a little bit of 0:03:01.960 --> 0:03:04.200 a shield down coming here over the next few months 0:03:04.200 --> 0:03:07.080 as we all work this out. Well, So, how do 0:03:07.320 --> 0:03:10.800 leaders kind of make it worth it to a worker 0:03:10.960 --> 0:03:13.120 who says, listen, I can work at home such as 0:03:13.000 --> 0:03:15.480 you know, as easily I can be as productive. How 0:03:15.480 --> 0:03:18.399 do leaders and companies make it worth it to say, Nope, 0:03:18.400 --> 0:03:19.680 get on the train and get in your car, come 0:03:19.720 --> 0:03:22.840 to the office. Yeah, I think that is the big question. 0:03:22.919 --> 0:03:25.280 You know, we have people who are already working hybrid, 0:03:25.320 --> 0:03:27.720 so they sometimes have gone into the office. Those people 0:03:27.760 --> 0:03:31.280 have told us, in fact, the largest percentage of them 0:03:31.320 --> 0:03:33.440 told us, Hey, I'm thinking about stopping the hybrid thing 0:03:33.440 --> 0:03:35.400 going into the office. I think I'll just be remote. 0:03:35.640 --> 0:03:37.480 And we asked them why is that the case? And 0:03:37.520 --> 0:03:39.640 what they've said, Carol is while go into the office 0:03:39.720 --> 0:03:41.680 and I sit down, and I'm on a team's meeting, 0:03:41.960 --> 0:03:43.960 and I'm you know, working through zoom with all the 0:03:43.960 --> 0:03:46.720 people that I know, but they're not here physically, and 0:03:46.760 --> 0:03:50.280 so there's there's really a need for managers and leaders 0:03:50.320 --> 0:03:53.080 to start to think differently about the office, the physical 0:03:53.120 --> 0:03:56.280 space and help people understand why they would come back together. 0:03:56.280 --> 0:03:59.120 And the big finding from the report is social capital 0:03:59.280 --> 0:04:01.360 or these connect shoes. We create one more in person 0:04:01.640 --> 0:04:04.440 matter a lot, and they actually really are formed best 0:04:04.480 --> 0:04:07.080 when you're in person. So we don't think that all hyper, 0:04:07.160 --> 0:04:09.280 they're all remote, were all in person. We think a 0:04:09.280 --> 0:04:12.800 combination is important. Jared, a very wise individual said to me, 0:04:12.840 --> 0:04:16.360 what's interesting is that? And I think this was Frank 0:04:16.440 --> 0:04:21.080 Kassudis at Cisco and said that coming into the office 0:04:21.560 --> 0:04:23.520 was more important for men because so much of their 0:04:23.560 --> 0:04:26.760 social network was the case and forgive me, friend, if 0:04:26.800 --> 0:04:28.520 it wasn't you, it might have been somebody else at 0:04:28.520 --> 0:04:31.200 work shifting, and that for women that we tend to 0:04:31.240 --> 0:04:34.560 have a pretty vast social network outside of the office. 0:04:34.600 --> 0:04:36.599 And that's why there's still a lot of men running 0:04:36.600 --> 0:04:39.720 companies who are like, get to the office. Why can't 0:04:39.720 --> 0:04:42.080 we be in the office. I'm curious your thoughts on that, 0:04:42.200 --> 0:04:46.080 or if any of your data shows any inside on that. Well, 0:04:46.160 --> 0:04:49.160 we did show that friendships at the office are important 0:04:49.160 --> 0:04:51.720 and that they're impacted when you're not physically there, so 0:04:51.880 --> 0:04:53.680 that that much is true. I can't comment on the 0:04:53.720 --> 0:04:56.200 men women's but I can also they'll comment on something 0:04:56.240 --> 0:04:58.280 that jumped out at me, and that's how people felt 0:04:58.279 --> 0:05:01.200 about their productivity. Eight percent of the people that we 0:05:01.240 --> 0:05:03.520 survey said that they've been as productive or even more 0:05:03.560 --> 0:05:06.719 productive at home. But over fift those managers that we 0:05:06.720 --> 0:05:08.880 servey said no, not so fast. We don't think so. 0:05:09.000 --> 0:05:11.360 We think there's been a drop in productivity. So there's 0:05:11.400 --> 0:05:13.719 a lot going on. I think it's friendships. Like you're saying, 0:05:13.720 --> 0:05:15.680 the social aspect. I also think it's kind of a 0:05:15.680 --> 0:05:18.360 hard nosed looked at productivity, and leaders are are a 0:05:18.400 --> 0:05:20.680 bit worried about that. Hey, Jared, I want to go 0:05:20.720 --> 0:05:23.560 back to what you said about these about the social 0:05:23.600 --> 0:05:25.599 capital here and how that looks in a hybrid world. 0:05:26.040 --> 0:05:30.000 How do you create those connections physically if let's say 0:05:30.000 --> 0:05:31.800 people are required to come in three days a week, 0:05:31.800 --> 0:05:33.960 but they're not coming in on the same team those 0:05:34.000 --> 0:05:37.960 three days. Yeah, this has been the really big question 0:05:38.080 --> 0:05:40.040 for these folks who are starting to experiment. What we 0:05:40.160 --> 0:05:42.880 found is that things like team agreements, they're quite simple, 0:05:42.960 --> 0:05:44.560 but can make a big difference. I know on my 0:05:44.600 --> 0:05:46.480 team is a simple example. We have what we call 0:05:46.560 --> 0:05:49.360 team Thursdays and parts of the team, so they're just saying, Hey, 0:05:49.360 --> 0:05:51.400 on Thursdays, why don't we get together. I'll be there. 0:05:51.640 --> 0:05:53.599 You can count on me being being there in the 0:05:53.640 --> 0:05:55.400 office if you show up, and that's a bit of 0:05:55.400 --> 0:05:57.440 a draw for people because the last thing that you 0:05:57.440 --> 0:05:59.400 want is to show up and John and Sally aren't 0:05:59.440 --> 0:06:01.920 there when you're when you've been expecting them. All right, 0:06:01.960 --> 0:06:03.600 So I have a question for you, Jared, and I 0:06:03.680 --> 0:06:06.880 keep wondering. It's a really tight labor market, and you 0:06:06.920 --> 0:06:10.599 ask any leader of an institution or CEO of a 0:06:10.600 --> 0:06:12.440 company that one of the things that's always on their 0:06:12.440 --> 0:06:14.719 minds is making sure they have enough access to talent 0:06:14.800 --> 0:06:17.200 getting the workers that they need right now. That's that's 0:06:17.200 --> 0:06:21.080 what's potentially holding them back. If, if anything, so, what 0:06:21.240 --> 0:06:24.320 happens in a looser labor market? Does all of this 0:06:24.440 --> 0:06:26.599 go away? And companies are like, you want a job, 0:06:26.760 --> 0:06:28.839 you've got to be in the office. And I don't 0:06:28.839 --> 0:06:30.960 mean when do we get to that looser labor market? 0:06:32.839 --> 0:06:34.960 But everything is a cycle, right, So I'm just wondering, 0:06:35.000 --> 0:06:37.000 if that happens, is it like all of this that 0:06:37.000 --> 0:06:40.760 we've been talking about goes away? You know? That is 0:06:40.760 --> 0:06:43.800 probably the single most frequently asked questions that I get 0:06:43.800 --> 0:06:46.000 from business leader CEOs on down. And what I would 0:06:46.000 --> 0:06:48.200 say is this, if if if we have been experiencing 0:06:48.200 --> 0:06:50.120 this for three months, maybe six months, it would have 0:06:50.120 --> 0:06:52.000 been something that we all kind of just waited our 0:06:52.040 --> 0:06:54.279 way through. At this point, what we're seeing, and that's 0:06:54.320 --> 0:06:57.440 the big finding of the report, is that people's mindset 0:06:57.480 --> 0:07:00.279 have changed. In fact, even deeper, their values have age. 0:07:00.480 --> 0:07:03.240 As a simple example, fifty two percent of gen Z 0:07:03.320 --> 0:07:05.560 and millennials told us that if they don't get the 0:07:05.560 --> 0:07:08.080 flexibility they're looking for, they will leave and go find 0:07:08.080 --> 0:07:10.320 it elsewhere. And that's not a statement about, you know, 0:07:10.320 --> 0:07:13.000 what a tough labor So we think that employers who 0:07:13.000 --> 0:07:15.040 are smart are just going to realize, oh, we should 0:07:15.080 --> 0:07:16.760 think of this as part of the deal we can 0:07:16.800 --> 0:07:19.560 offer to create a differentiated employee experience. As you think 0:07:19.560 --> 0:07:21.160 about it that way, I think it's less about the 0:07:21.280 --> 0:07:23.960 labor market type we're not much more about how you're 0:07:24.000 --> 0:07:26.160 attracting talent. I love that you guys found that meetings 0:07:26.160 --> 0:07:28.600 now start later on Mondays and finish earlier on Fridays. 0:07:28.640 --> 0:07:31.920 There are fewer meetings at lunch time. To note, eleven 0:07:31.920 --> 0:07:34.160 am is the most used meeting time. Two to three 0:07:34.200 --> 0:07:39.040 pm is rising in popularity. Right, yeah, me too. It's okay, 0:07:39.280 --> 0:07:41.280 I'm okay with it. All right, Jared, thank you so 0:07:41.360 --> 0:07:43.200 much there for hanging around for us today. We really 0:07:43.200 --> 0:07:46.080 appreciate Jared's Pitaro. He's corporate VP over at Microsoft. Through 0:07:46.720 --> 0:07:49.320 via zoom from Redmond, Washington. What do you think do 0:07:49.720 --> 0:07:52.640 like I wonder in a tighter labor market? Absolutely, you 0:07:52.640 --> 0:07:54.920 know it's not gonna it's gonna change a little bit. 0:07:54.920 --> 0:07:58.040 It has to write. Yeah, unless it's just so hard 0:07:58.040 --> 0:08:01.160 to imagine a tighter labor market, unless you already place 0:08:01.320 --> 0:08:04.320 right and it's just entrenched to the system. All Right, 0:08:04.360 --> 0:08:07.720 we're almost there, bebe almost almost a Friday, alright, everybody, 0:08:07.720 --> 0:08:10.040 have a good and safe evening. This is business week.