Like many businesses across the economy, technology companies continue to reassess the timing and scale of their return-to-office plans as Covid-19 cases surge around the United States.
During the second quarter of this year, pandemic data in many parts of the country was improving; hospitalizations were going down and more people were getting vaccinated. Then, in July, the news turned as concerns over the new delta variant spiked. Now, omicron has arrived.
Data from security management company Kastle Systems sheds some light on what the return to work looks like across 10 major U.S. cities. The company tracks access card swipes in its commercial buildings in these cities, and this information shows how building occupancy plummeted in March 2020 and has in recent months been gradually increasing.
This data, shown in the chart below, spans multiple industries. The share of people returning to work in the technology sector is likely lower, given that many tech workers can do their jobs remotely.
Two of the largest technology hubs in the United States — the Bay Area (composed of San Jose and San Francisco) and New York — have had a below-average number of workers returning to the office. Austin is another technology hub with the most significant return to work percentages: More than half of workers across the economy as a whole returned to work during several weeks in July. While keeping in mind that there are many factors at play in rising Covid-19 cases, it is notable that Texas has had a higher number of cases per 100,000 people during that period than California and New York, according to CDC data from Aug. 16.)
Tech Companies Delay Their Return to Office
Tech companies, like many individual Americans, are tracking and assessing the latest information about the coronavirus in order to manage their risk. Each month that the pandemic continues, workers continue to get more accustomed to working from home. Over the summer, several big technology companies discussed their plans for returning to work, with many opting to punt yet again.
5 Big Tech Companies That Are Delaying the Return to Office
- Alphabet, Apple and Uber have put return to office plans on hold indefinitely. In addition to this, Apple is reportedly temporarily closing some retail stores in Miami, Annapolis, and Ottawa.
- Facebook’s parent company, Meta, is allowing employees to defer the originally scheduled return in January 2022 by up to five months.
- Lyft has delayed their return to office until 2023. In the meantime, a Lyft spokeswoman said that the Company will “continue to talk with team members, use their insights and prioritize flexibility as we develop long-term plans for how we work.”
There is also the question of whether companies will require employees to be vaccinated against Covid-19 in order to return in person. Here is how several large companies — in tech and beyond — have handled this matter:
- Beginning in September, Microsoft required employees to show proof of vaccination when entering the office.
- Facebook and Google require their employees visiting an office to be vaccinated.
- Walmart, which is the largest private employer in the United States, required its back-office employees to get vaccinated by Oct. 4 and the company continues to provide cash incentives for frontline store workers to get the vaccine.
- Walt Disney employees are required to be vaccinated. Additionally, the company has entered into conversations with unions about requiring vaccines for those working under collective bargaining agreements.
What This Means for the Middle Market
Some early stage technology companies have never had an office, and employees will continue to work remotely after the pandemic. Other technology companies — particularly late-stage or more mature orgs — have already been back in the office for months. Middle-market tech companies may have the flexibility to remain more nimble in navigating between remote work and returning to the office.
History has shown that management teams at mid-market tech companies will look to what Big Tech in Silicon Valley is doing to inform their approach. Companies of all sizes will have to be strategic about how they navigate returning to in-person work, given the battle to attract and retain top talent. Whether it’s after the New Year or even farther into 2022 and beyond, it will be interesting to see how the sector continues to address this issue — and how employees will respond.