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In embracing hybrid work, Salesforce sees clear cost savings

Media Contact

Rebecca Valli

Salesforce, a leading cloud-based software company based in San Francisco, announced this week that it would allow its employees to “work remotely part or full time after the pandemic.” 


Bradford S. Bell

Professor in strategic human resources and director of ILR’s Center for Advanced Human Resource Studies

Bradford S. Bell, professor in strategic human resources and director of ILR’s Center for Advanced Human Resource Studies, says that Salesforce is not alone in suggesting hybrid work arrangements in the long term. He adds that such decisions carry important cost-saving and other benefits for companies with a significant real estate footprint, like Salesforce.   

 

Bell says:

Salesforce is not alone in its plans to expand remote work options for its employees – many companies are considering a more balanced mix of hub, home, and hybrid work arrangements in the future.

“The Salesforce announcement is likely gaining particular attention because it is one of the largest employers in several metropolitan areas, such as San Francisco, and has a significant real estate footprint. As it and other companies use remote work to reduce their real estate footprint, there could be important implications for the labor and real estate markets in these locations.

“As companies expand their menu of work arrangements, they will need to address several important questions. Are employees able to choose their work arrangement or are they determined by the company? How do the type of work, employee preferences, and business needs factor into decisions about who is a good fit for a particular work arrangement?

“As companies expand remote work arrangements, it will be important to reexamine the purpose of the office and redesign it accordingly (as Salesforce is planning to do). By adopting remote work options companies can potentially expand their talent markets. They are no longer bound by geography. This may enable them to attract more highly qualified and diverse talent.”

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