Posted on 08/26/2022 10:38:34 AM PDT by Cecily
JP Morgan's CEO Jamie Dimon has been telling senior managers that he wants rank and file bankers back in the office five days a week in a dramatic shift from their hybrid working model.
The finance giant is currently building a $3billion 70-story office tower on New York's prime Park Avenue - and Dimon is said to be worried that it'll sit empty if staff continue to work from home multiple days a week.
The investment bank's titan has emphasized the company's apprenticeship model - where staff work collaboratively and learn from one another in the office environment.
(Excerpt) Read more at dailymail.co.uk ...
People who can find work from home or hybrid jobs they like will continue to do so, so good luck filling all that expensive new office space Lumberg, I mean, Jamie.
Wonder what the current vacancy rate is for office buildings in Manhattan?
It will take a while, but imo, most people will be back in the office at some point - it’ll start with the big prestigious companies that pay higher-than-average salaries so have leverage, but will trickle down to a lot of the less prestigious and mid-sized companies as well.
Many people are capable of working without supervision - most people are not, and myself, as part of a team of people made up of some who have always been remote, and those who became remote during covid - its pretty obvious who can handle it and who can’t.
I agree with you - Dimon has a white elephant. Lots of commercial space being converted to residential condos. The employees have figured they can work at home, don’t have to spend time commuting, don’t have to spend money commuting or on clothes, don’t have to work with annoying colleagues, and don’t have to deal with the drudge of urban life. It will be tough to convince them to do otherwise.
Don’t forget the pay. Peak Covid I knew several people with 3-5 full time jobs. A top 20% worker 2hr/day can keep up with the bottom 20% 8hr/day and nobody is the wiser.
JP Morgan is one bank I won’t be doing projects for then.
The beauty is....I don’t need them. Other banks are quite happy to employ me on a 100% remote basis - the only basis I will agree to.
I’ve spent about 50% of my career in a private office, 45% work at home, and 5% working from a cubicle.
I was at my least productive in the cube, as I was distracted by my coworkers. I’ve been the most productive at home. I’d never work in a cube farm on a regular basis again, but wouldn’t be opposed to a private office.
The vast majority of White Collar workers who have a choice will not be returning to the office. Companies that try to insist on it are simply not going to be able to get the experienced talent they want.
Remote sucks. You are always on the clock. It starts at 6:30AM and ends at 6PM. I’m glad I am retiring.
Most of our employees that can retire say they won’t go back in.
You mean, the SAME finance giant who's been telling us we're due for an epic crash is builing a $3B, 70 story office building???
That guy?
What does this tell us? Hmmm. 🤔
Any company that makes staffing and operations decisions based on the cost of an overpriced building that never should have been built in the first place ought to be run out of business.
The only way a company is getting people back in the office full time is if the pay is significantly higher than companies that do allow them to work remote.
Not sure they’re willing to do that.
We’re having a very hard time finding people, and the ones we do find all ask specifically if they can work remote, and let us know that if they are required to come to the office, they are not interested.
I really believe it’s the new normal, and companies are just going to have to find ways to adapt.
Remodel as apartments - done!
>>Don’t forget the pay. Peak Covid I knew several people with 3-5 full time jobs.
Yep, and don’t kid yourself - employers know it.
>>What does this tell us?
That you don’t invest $3B in an office tower and worry about what it is worth next month or the month after that - you play the long game, which I believe is what he is doing.
It takes a lot of money and a lot of time to build big office towers - and if you are worrying about what the economy is going to do 3 or 6 months from now, then you are worrying about the wrong things.
Found this....skip over the parts where they try to gloss it up....
....More than 120 million square feet of office space has remained vacant ever since the first quarter of 2021 and shows no signs of being reduced. As of June 1, average asking rents of $65 a square foot represented a decline of 30% from the $90 being demanded in 2019, according to Lander’s report.
If the situation does not improve, the comptroller estimates, the decline in office values this year could cost the city as much $600 million in property taxes annually. Property taxes are normally the city’s most stable revenue source.....
Exactly.
Hard assets.
Thank you. Go to the head of the class 🍎
“Remote sucks. You are always on the clock. It starts at 6:30AM and ends at 6PM. I’m glad I am retiring.”
I don’t get it.
Turn off the phone and computer at the end of your work day, and you’re done.
Why does working remote make the job any more “always on the clock” than the job would have been otherwise?
Agree; with some exceptions where employees have to be onsite (stores, restaurants, banks) most businesses now realize they don’t need fancy office space at exalted prices. Most commercial office buildings are going the way of the dodo; the trend was coming but it was accelerated by Covid and it is not going back.
I think it’s the other way around. Companies like JP Morgan that look to fill overpriced commercial real estate are going to be facing a competitive disadvantage against companies that let most of their staff work from home.
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