The 'diminishing returns' of hybrid and flexible working are becoming apparent, as executives are urged to get face-to-face time with counterparts, colleagues, and clients
Zoom calls aren't going to cut it any more and executives should be jumping on a plane to meet people in person as the world reopens and people return to the office overseas, leaders have been told at a business summit.
About 200 business and social impact leaders gathered on Tuesday for the ‘Auckland’s Future, Now’ conference organised by Auckland Unlimited, the local council’s economic development agency. They heard speakers and panel discussions on how to aid the city’s recovery from the Covid pandemic, and what role the private and public sectors should play.
Keynote speaker and HSBC group advisor on future cities and new industries Greg Clark has been tracking what’s happened in 100 cities across 40 countries as they recover from the pandemic.
He says New Zealand, with the rest of the world, should expect a changed and reset world once the pandemic is firmly in the rear vision mirror.
“Covid-19 is not just a public health crisis, it’s not just an economic shock. It’s also been a big accelerator of change,” he says.
Freight and supply chain disruptions have altered countries' attitudes towards globalisation, while digitalisation of services has ramped up and health inequalities have been revealed.
Notable trends in the recovery from Covid include a rebound in leisure and hospitality activity in Europe as people resume normal life. In North America, many employers are trying to lure employees back into the office as virtual working begins to lose its shine.
Clark says the “diminishing returns” of hybrid and flexible working are becoming apparent, and leaders need to be thinking about creating office spaces and CBDs that are attractive places to work and live.
Auckland seen as problem, not opportunity
While remote working has been beneficial for worker choice on where they can live or how they arrange their schedule, the need for social reconnection in workplaces is now becoming apparent, after a long period of disconnection, he says.
“People have social capital that was stored up from the years before the pandemic. That has become completely utilised during the restrictions and it's now run out. It's time to build back the social capital,” he says.
“Many employers are now insisting on three to four days a week at the office where the workers are wanting one to two days a week.”
Average congestion levels were approaching pre-pandemic levels in Asia-Pacific countries, including New Zealand, as people opted to jump in their car rather than take the bus, Clark says.
“Encouraging people to switch back towards active travel and public transport is a key challenge that all city governments face,” he says.
Think-tank Koi Tū: The Centre for Informed Futures released a report earlier this year examining what it would take for Auckland to become a global, sustainable, and thriving city by 2070.
A shakeup of decision-making and funding processes, with a lack of a shared vision between local leaders, central government, and the city’s residents, were among the issues flagged by the report.
Koi Tū director and report co-author Sir Peter Gluckman says cities, not countries, are the unit of long-term planning and innovation.
“Auckland is too often seen as a place of problems rather than a place of opportunity,” he says.
He says there’s a disconnect and policy misalignment between Auckland and the capital. To change this, he wants to see more dialogue between the business community and Government policy makers, along with the establishment of a planning unit to help direct the city’s development.
Leaders need to think beyond the short-term political cycle, and consider how Auckland's assets can be best utilised, Gluckman says.
Talent retention still a challenge
This time last year, Gluckman was warning business leaders that the “window of opportunity” to attract overseas talent was quickly closing as the rest of the world began to shake off the pandemic.
Iron Duke Partners managing director and former BusinessNZ boss Phil O’Reilly says this battle over talent and labour is ongoing, as a majority of firms are concerned about retaining good staff.
Despite the country beginning to open up to the outside world and allowing travellers in, O’Reilly says the allure of better wages across in Australia was seeing talent sucked over the ditch.
For business leaders who’ve been separated from overseas counterparts and clients, O’Reilly is urging people to actively reconnect with them in person.
“We are the least connected we have ever been on a person-to-person basis and that disconnection really matters. 2am Zoom calls just don’t cut it,” he says.
