Work location is irrelevant in this new global environment.
Companies and workers are gridlocked in a battle between remote and in-office work that will soon be moot.
The transition in how and where we work is as big of a shift as it was during the Industrial Revolution. The pandemic proved that workers can be productive working from home, from the beach, from anywhere. Period. What companies still want, though, is connectivity that drives the same inspiration as when people are physically together.
I understand the desire, as I feel it too. As CEO of a remote company and someone who is energized by in-person collaboration, I miss being with my people most of the time.
The new work environment
However, megatrends are pushing us toward a new work world for knowledge workers that will be the big unlock we all need. It is not remote, nor in-office, nor a combination of the two. It is borderless. This means co-workers will live and work in different countries, most of the time, and whether they’re at home or in an office won’t really matter.
What will make this possible and palatable over the next decade or two–even to CEOs–are technology, economics, and changing expectations and experiences.
Today, borderless work is already happening across a broad spectrum of knowledge work. Gartner reports that 58 percent of firms are currently practicing “borderless” hiring for tech work. That figure doubled in the last three years, and more companies are looking into it. As stated by Gartner, COVID accelerated borderless hiring, but “what began as an exception is no longer.” Megatrends pushing this phenomenon include:
Economic Volatility: Gartner survey results released last summer showed that, due to economic volatility, 41 percent of enterprise CIOs slowed hiring for IT roles, 35 percent reduced overall IT budgets, and 29 percent froze hiring for IT roles. Global and economic uncertainties persist in 2024, Deloitte notes. Many tech executives are having to do more with less. Labor is often a company’s biggest expense. Sourcing contingent workers for short- or long-term projects can reduce software engineering costs 30 percent to 50 percent. When companies do this successfully, they’ll force others to follow suit to meet their cost advantage.
Skill shortage: Despite recent layoffs, “tech talent is still hard to find,” notes Deloitte research. Statista found that 54% of organizations still experienced a skills shortage in tech in 2023.
Emerging markets for tech talent can help fill those gaps, and initiatives are underway to boost training and skill development. In Latin America, for instance, AWS is working with eight different countries to upskill citizens. Companies like Meta, Google, IBM, and Unisys are offering free training in other LATAM cities. In Africa, home to the world’s largest and youngest workforce, AWS, Google, Meta, Microsoft and others are training engineers. In 2014, Andela first started training engineers in Africa and has continued the program, providing training and career opportunities for over 155,000 engineers to date.
Companies benefit from untapped talent. Research has shown that more diverse teams boost company performance. With a borderless point of view, it’s possible to hire the most qualified candidate, regardless of location. The idea that good talent only exists within a company’s borders is outdated, especially given the global scope of so many companies.
Workers’ expectations: The pandemic alleviated long commutes, the typical 9-5 office day, and unlocked a new perspective on work/life balance. Now, more workers–particularly in roles like IT–demand that flexibility, even as companies attempt to bring them back to the office. As McKinsey states, “Americans are embracing flexible work–and they want more of it.” As employers get more comfortable with homegrown workforces being remote, they’ll be more open to borderless workers, too.
The role of technology: From email to Zoom, technology has continually made us more productive and connected. Investment is soaring to find ways to make out-of-office labor more productive and to improve remote management. With the right tools and processes, workers can get jobs done from wherever they are. As companies upgrade tech, thinking “remote-first” will be key. Eventually, will become good enough for it to seem as if we actually are physically together, even when we’re not.
The borderless work world, empowered by technology, was building momentum before the pandemic. It then accelerated during the pandemic. The most innovative companies, going forward, will seek the best talent wherever it exists. As they do so, others will have to follow or they will fall behind.
