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- No stranger to controversy, entrepreneur and part-time political firebrand Elon Musk laid down the law, demanding his employees return to the office.
- Naturally, worker bees that have become pleasantly acclimated to the new normal are generally up in arms about the matter, but they really shouldn’t be.
- The latest firestorm should serve as a reminder that no one is irreplaceable and if your job can be done at home, it can be done in India.
Perhaps motivated by an urging to demonstrate that he could still rock the boat, Tesla (TSLA) CEO Elon Musk sent out a rather shocking message, even by his standards. Breaking the news first, Electrek.co revealed a series of leaked emails from the entrepreneur demanding Tesla office workers return to their on-campus stations or leave the company outright.
Leaving little room for nuance or alternative interpretations, Musk stated, “Anyone who wishes to do remote work must be in the office for a minimum (and I mean *minimum*) of 40 hours per week or depart Tesla. This is less than we ask of factory workers.” Tesla’ chief executive later added that he would consider certain exceptions but that he will review such requests personally.
In other words, don’t be the nail that sticks out or you could be hammered next.
Further, in a follow-up email, Musk admonished those with higher positions to set a positive example. “The more senior you are, the more visible must be your presence. That is why I lived in the factory so much – so that those on the line could see me working alongside them. If I had not done that, Tesla would long ago have gone bankrupt.”
Naturally, the blogosphere lit up, with many decrying the dinosaur mentality that the otherwise visionary Musk was imposing. Further, critics pointed to reports that telecommuting workers were much more productive than those tethered to the office. Still, Musk might be onto something – a possible blessing in disguise for American workers.
You Can’t Have Your Cake and Eat It Too
For those fortunate enough to work in white-collar industries, the COVID-19 crisis was in many ways a financial boon. From telecommuting privileges to government stimulus checks to extra free time to speculate on the capital markets, 2020 may have appeared as the beginning of all joys. But then, reality started kicking in.
Essentially, to accept one method of action necessarily means you must accept both its pros and cons. Regarding market speculation, investors cannot complain that the wildness that initially boosted their portfolio has now come to crash it. Similarly, those who gleefully accepted cash handouts from Uncle Sam cannot then blame the federal government for soaring inflation.
In terms of working from home, Carvana (CVNA) recently laid off thousands of workers, some via video-conferencing platforms. Though the approach appeared callous, the simple matter is that if you can be hired remotely, you can be fired remotely.
Now, the other side of the argument is that evidence indicates workers prefer telecommuting. Without having to deal with the morning commute and the grind back to home, employees are happier and possibly more productive. Moreover, several Tesla jobs are filled by highly educated and talented specialists, many if not most of whom are desired by other companies.
Therefore, it appears that workers have more leverage in this game – until, that is, we factor in globalization.
India and the Other Side of the Telecommuting Coin
Back in late 2012, the BBC reported that India claimed to be the world’s second-largest-English-speaking country. Based on reliable data, around 10% of its population or 125 million people spoke English, with the figure expected to quadruple in the next decade.
It’s not entirely clear what the English-speaking allocation of the country is today. However, a report from The Brookings Institution noted that the Indian government has been aggressively ramping up its educational infrastructure. Given demographic trends, it’s very possible that soon, India could have not only the biggest English-speaking population but pound-for-pound the most educated as well.
Longer term, that bodes poorly for the future of work from home. Privileged employees may enjoy the benefits right now. But at some point, those that cut the checks will likely realize that if your job can be done in your living room, it can be done in India – and for pennies on the dollar.
It might not seem like it but Elon Musk’s demand for his workers to come back to the office could be a blessing in disguise. By presenting the value of hiring American workers, on-campus employees can better justify their high salaries. But if work from home becomes permanent, the very nature of work becomes decentralized.
Under this circumstance, employers will seek the lower-cost option. And the double whammy is that the lower-cost option could end up being superior due to the investments India has been making in its educational infrastructure.
Being Right on This One
Given the number of controversial statements that Musk has made over the years, it’s impossible to find agreement on every talking point. However, the visionary may be correct about in-office work.
You must keep in mind that big business never looks out for individual workers. Instead, it always pursues the bottom line. Therefore, the current concession about working from home should not be taken for granted. If another, less-costlier alternative comes along, you can be sure that the major corporations will take it.
Arguably the biggest irony about the post-COVID telecommuting privilege is that it may permanently destroy working in the office – by having little to no U.S.-listed jobs at all. With developing nations rapidly expanding their academic footprint and acumen, it’s only a matter of time before they start substantially competing with American workers.
After all, by decentralizing work from the workplace, there is zero incentive outside of certain legal restrictions for employers to hire Americans. Since work will be done remotely anyways, what does it matter if the project is executed in Manhattan or Mumbai?