The Great Return And Its Relationship With Inflation
- Mar 16, 2022
- 5 min read
Written by: Lisa Moore, Executive Contributor
Executive Contributors at Brainz Magazine are handpicked and invited to contribute because of their knowledge and valuable insight within their area of expertise.
In his 2022 State of the Union Address, President Joe Biden implored companies to bring their workers back to the office to stimulate a revival in downtown corridors.
For two years, downtown office buildings stood empty, and the restaurants, bars, and other downtown businesses took an economic hit.
Yet, as our political leaders push workers toward The Great Return, there are economic realities businesses must address. Is it feasible to force remote workers back to the office after two years?
And if a business decides to bring workers back, what can they do to offset the financial hit their workers may suffer?
The Economic Realities of Inflation
When Covid-19 restrictions began in March 2020, the average price for a gallon of gasoline was $2.60. In March 2022, the average cost per gallon hovers $4.17 and continues its rise with the geopolitical unrest in Eastern Europe.
It's a possibility the gas price will be double what it was when workers left their offices two years ago.
But it's not only the price of gas that has workers balking at The Great Return. Grocery prices are also rising, and families now spend 12% of their income on groceries. That number is up from around 10% at the end of 2020.
If workers must return to the office and spend more on their commute, they'll have less money to spend on their already high grocery costs.
Why The Great Return May Push Inflation Higher
Supply bottlenecks and shortages impact the rate of inflation. Prices jump as supply cannot meet demand, and we're experiencing that now, even as many workers remain remote.
Gas prices will rise as more workers must commute to the office. Increased gas prices will also contribute to higher shipping costs for groceries and other goods.
Then there is the service industry economy. President Biden and political leaders want a return to office work because of the economic impact it will have on downtown corridors in need of a boost.
While worker return will give restaurants a much-needed boost in the long-term, the short-term effects may drive inflation even higher.
Restaurants across America will see an increased demand. That means they must order more products and put more stress on an already stressed supply chain. Restaurant revitalization may mean an even higher spike in food prices in the short term.
As restaurants experience increased demand, they'll need more workers. Hiring more workers means rising labor costs, and those labor costs get passed on to the consumer at higher menu prices.
Remote Work Impact on Worker's Lives
Remote work liberated workers. They're no longer tied to a commute, meaning they can explore less expensive living arrangements. They also spend less on child care, gas, and clothing.
Being out of the office also increased the quality of life for many workers. Schedule flexibility and no commute give workers more time, which proves to be a valuable resource.
Less time devoted to the ancillary tasks of commuting and sticking to a rigid nine-to-five schedule meant more time for the essential parts of life outside of work.
Working from home also empowered workers and gave them leverage to make demands. The Great Resignation of 2021, where 4.5 million people left their jobs in November, signaled that workers are no longer interested in working jobs that do not meet their needs.
How to Retain Workers Amid The Great Return
If you want your workers in the office, you have to contend with employee retention. A recent survey shows that 60% of those now working from home want to continue doing so. If the Great Resignation taught employers anything, they must work harder to retain employees.
Covid-19 shifted how Americans think about work, and it's up to you to pivot with them. Here are some ways to keep your employees during the return to the office.
Forget the Hustle Mentality
Workers now feel that life is about more than work. And they want their work to complement their lives rather than detract from it. According to a recent report, low pay and lack of advancement opportunities caused people to quit.
But feeling disrespected at the workplace ranked just as high.
Workers don't want to feel like cogs in a wheel, and they're not willing to deal with high workplace stress levels.
Flex-Time
Calling workers back to the office doesn't have to look the same as pre-pandemic. Some companies offer hybrid schedules where workers report two to three days a week and work from home the rest. This type of schedule cuts down on commute costs.
Also, if possible, lose rigid time structures. Who cares if someone arrives at 10 AM or leaves at 3:30 PM as long as they're productive?
Rethink Worker Benefits
Traditional workplace benefits like healthcare, vacation, and retirement packages aren't good enough to keep employees. Though not offering them won't help you hire new employees.
The Great Return means employers must rethink and expand their benefits packages. You could offer employees a weekly gas card or offer free public transportation passes to combat gas prices.
Another benefit for office workers might be an easy to access sabbatical. Time off is the antidote to burnout.
Child Care Considerations
America lost over 20,000 child care facilities during the Covid-19 pandemic, meaning a cost that was already far too high for most families will be even higher as people return to the office.
Family care isn't a private matter, and you're likely to lose employees if you force a return to office work without addressing this fundamental worker need. Some ideas include worker time flexibility, reduced in-office hours, and a four-day workweek.
Companies must also get active in supporting policy to lessen the overall cost of American child care.
Workplace Inflation May Slow The Great Return
Our political and financial leaders want folks back in the office as soon as possible. They see The Great Return as a way to stimulate downtown economies and signal to the world that we've moved past the Covid-19 pandemic.
However, workers are less enthusiastic than ever to return due to spiking inflation. If employers want a return to in-office work, they must assume the burden of a changing workforce.
Do you need more advice for a return to the office? Contact us at Success Tangent Business Consulting. We're here to help you navigate these difficult times.
Lisa Moore, Executive Contributor Brainz Magazine
Lisa Moore has been in People Operations and Corporate Training for over 22 years. She’s a firm believer that success is not luck or talent, but is instead the product of hard work, creativity, and lots of learning. Lisa’s educational background includes names such as Auburn University, Cornell, and Harvard University with expertise in the areas of Industrial-Organizational Psychology, Organizational Behavior, and Cognitive Neuroscience.
In her career she has worked with individuals across diverse cultures on topics such as communication & negotiation skills, conflict management, cultural change, cultural sensitivity training, leadership development programs, organizational change management, remediation programs, performance management systems design – all framed through the lens of growth mindset.
As CEO of Success Tangent Business Consulting (STBC), Lisa helps businesses and individuals on their path to success with training/coaching programs designed to foster a growth mindset, where people are seen as the solution rather than the problem.
