Remote work options not available to 60 per cent of workers, sowing resentment - CP24 Toronto's Breaking News | Canada News Media
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Remote work options not available to 60 per cent of workers, sowing resentment – CP24 Toronto's Breaking News

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TORONTO — Employees like Matt Fairbanks are one of the reasons the hospitality and restaurant industry is struggling to find workers even as the pandemic wanes.

The 34-year-old former bartender has moved from slinging beers in Toronto to selling software to restaurants for a Saskatchewan company – which he does remotely.

“I was always kind of one foot out of the hospitality industry and the pandemic really showed me how vulnerable the work was and the instability of it all,” he said in an interview.

Gone are the harrowing commutes, while the additional flexibility has improved his work-life balance. Fairbanks’s company allows employees to work from out of the country for up to 90 days, take unlimited vacation and travel or work from anywhere in Canada.

“I’ve actually encouraged a lot of my friends from the restaurant industry to kind of look at other options and change kind of how they’re doing their life, too.”

Remote work flourished during the pandemic as companies temporarily closed their offices, but it has created a schism among Canadian workers. While 40 per cent of work in Canada can be done remotely, experts say, that means 60 per cent of workers are unable to access this benefit because they are required to be on-site.

And that can create resentment and a backlash from workers viewed as essential, such as nurses, ambulance workers and retail employees, who were applauded during the pandemic but are unable to realize the benefits that come from working remotely, said change management expert Linda Duxbury, a Chancellor’s Professor of management at Carleton University’s Sprott School of Business, who has studied remote work for decades.

“The problem we’re going to have here is we’re going to create two classes of workers – the haves and the have nots,” she said in an interview.

Those who can work remotely, particularly professionals such as accountants, lawyers and tech workers, flourished financially during the lockdowns while those forced to work on-site were often overworked or lost their jobs entirely amid reduced capacity and businesses that shuttered for good.

That second group was told they were valued and important “and now they don’t feel important,” Duxbury said.

The ability to work remotely has been one of the pivotal moments in the history of work, even though its application is generally limited to knowledge workers, said Erica Pimentel, assistant professor of accounting at the Smith School of Business at Queen’s University.

“So when 60 per cent of the workforce is excluded from this massive change, well that’s obviously going to have some implications for society,” she said, because it’s very inconsistent in how it affects the population at large.

Duxbury cautions that the jury is still out on remote work, or what she calls “enforced work from home.” She constantly hears from businesses seeking best practices and examples of what others are doing. But she said it’s too early to assess the work style as everybody is experimenting with different models.

“Remote work during the pandemic was one big giant experiment. Now we’re moving to the second experiment, the follow up, which is hybrid work,” she said.

The appropriateness of remote work is very job dependent. It isn’t conducive to brainstorming, socialization, coaching, mentoring, onboarding, team-building and client satisfaction.

And while people who work from home put in far more hours – estimated at four to 10 additional hours per week – data suggests it hasn’t increased productivity, Duxbury said.

“Just because we worked 100 per cent remote for the last two plus years doesn’t mean it’s a sustainable model for a lot of people and a lot of jobs moving forward.”

Despite the drawbacks, remote work is being increasingly favoured, especially by generation Z, digital natives who have always had access to the internet and social media, said Pimentel.

This cohort is coming of age and joining the workforce with new attitudes about employers’ duty to them and how different parts of their lives fit together that is different from millennials, generation X and baby boomers, who are in many cases now the bosses.

“And so there’s this generational like mismatch between bosses and their employees and everybody is unhappy.”

Many companies would rather have employees return to the office full-time, but are facing stiff opposition from workers who have grown to like working from home, said Duxbury. Faced with record job vacancies amid decades-low unemployment rates and threats of resignations, employers have been forced to be flexible.

That means employees with a skill that’s in demand are able to negotiate better work conditions than somebody without those skills.

Tech workers, who accounted for most of the three per cent of Canadians who worked remotely before the pandemic, are among those in the driver’s seat now.

Demands to work remotely have gone from being the exception to the rule because it’s so hard to compete for talent, said Kristina McDougall, founder and president of executive search firm Artemis that specializes in tech employment.

“Unless there is an absolute reason why you physically need to be present, like you’re working on a robot or you need to be in the building, most organizations are having to be flexible,” she said.

The growth in remote work has also transformed where companies source their workforce because people can work anywhere and don’t have to be near a company headquarters. That widens the jobs an individual can consider, but it also gives companies a wider pool of candidates as well as increased competition with other potential suitors.

McDougall believes the movement to remote work is permanent for sectors like technology because the pandemic has proven that organizations can get things built with people working remotely.

“You can’t put the genie back in the bottle. People are now finding it trivial that they might need to go into an office every day.”

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Netflix’s subscriber growth slows as gains from password-sharing crackdown subside

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Netflix on Thursday reported that its subscriber growth slowed dramatically during the summer, a sign the huge gains from the video-streaming service’s crackdown on freeloading viewers is tapering off.

The 5.1 million subscribers that Netflix added during the July-September period represented a 42% decline from the total gained during the same time last year. Even so, the company’s revenue and profit rose at a faster pace than analysts had projected, according to FactSet Research.

Netflix ended September with 282.7 million worldwide subscribers — far more than any other streaming service.

The Los Gatos, California, company earned $2.36 billion, or $5.40 per share, a 41% increase from the same time last year. Revenue climbed 15% from a year ago to $9.82 billion. Netflix management predicted the company’s revenue will rise at the same 15% year-over-year pace during the October-December period, slightly than better than analysts have been expecting.

The strong financial performance in the past quarter coupled with the upbeat forecast eclipsed any worries about slowing subscriber growth. Netflix’s stock price surged nearly 4% in extended trading after the numbers came out, building upon a more than 40% increase in the company’s shares so far this year.

The past quarter’s subscriber gains were the lowest posted in any three-month period since the beginning of last year. That drop-off indicates Netflix is shifting to a new phase after reaping the benefits from a ban on the once-rampant practice of sharing account passwords that enabled an estimated 100 million people watch its popular service without paying for it.

The crackdown, triggered by a rare loss of subscribers coming out of the pandemic in 2022, helped Netflix add 57 million subscribers from June 2022 through this June — an average of more than 7 million per quarter, while many of its industry rivals have been struggling as households curbed their discretionary spending.

Netflix’s gains also were propelled by a low-priced version of its service that included commercials for the first time in its history. The company still is only getting a small fraction of its revenue from the 2-year-old advertising push, but Netflix is intensifying its focus on that segment of its business to help boost its profits.

In a letter to shareholder, Netflix reiterated previous cautionary notes about its expansion into advertising, though the low-priced option including commercials has become its fastest growing segment.

“We have much more work to do improving our offering for advertisers, which will be a priority over the next few years,” Netflix management wrote in the letter.

As part of its evolution, Netflix has been increasingly supplementing its lineup of scripted TV series and movies with live programming, such as a Labor Day spectacle featuring renowned glutton Joey Chestnut setting a world record for gorging on hot dogs in a showdown with his longtime nemesis Takeru Kobayashi.

Netflix will be trying to attract more viewer during the current quarter with a Nov. 15 fight pitting former heavyweight champion Mike Tyson against Jake Paul, a YouTube sensation turned boxer, and two National Football League games on Christmas Day.

The Canadian Press. All rights reserved.

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