Remote Work Environment: Consequences in the WDC Insurance Community

Remote Work: Not a Zero-Sum Game

We’ve been having lots of discussions with candidates and hiring authorities about the Remote Work Environment (RWE) these past few months.  A few things have really popped out at me:

Showing Up:  RWE workers are just now realizing that they are starting to fall behind in recognition, rewards, and promotions compared to their colleagues who are coming in to the office several times per week.  For the young professional seeking to climb the corporate ladder, beware.

Family Considerations:  I find many workers are wed to their RWE primarily because of work/life balance and related family issues.  The fact is that many insurance support staff and managers in the $60k – $90k compensation range are single-parents. 

Being a single-parent is a constant juggling act. 

These workers greatly value the time spent walking their kids to/from the bus stops and being available for local school-related emergencies.  And before jumping to the conclusion that these folks don’t work as hard as the commuters; studies have shown that RWE workers actually work more hours than those commuting to the office.  That’s a fact.

Collaborative Technology:  Having the right collaborative RWE technology platform is critical to the success of the RWE worker.  If any of my clients are offering RWE as an option, I always ensure they have a robust RWE collaborative technology platform before I represent them.  CRM and EPIC are very good platforms in this regard.  Without a RWE platform, a candidate will be swimming upstream from Day One.

Training Challenges:  This comes into play, particularly, with young workers.  Most of my clients will insist any new hires spend at least a week in their headquarters getting trained on systems, products, and the overall business process.  This is also a good time for them to meet with their office colleagues in the various departments such as sales, operations, administration, and support.  If there is no training offered, it is a sign of trouble ahead.

Mentoring is Important:  One of the downsides of RWE is you will not receive the same personalized mentoring and support that those in the office will receive.  Mentoring is one of the leading drivers of employee satisfaction AND performance.  Some firms execute on this using a Zoom/Teams platform, but it’s very challenging because of the personal nature of mentoring and coaching.  For those high-achievers, motivated to learn and wanting of fast-track professional growth, RWE may not be the best option.

Employer Cost Structures:  RWE can be a very big win-win for both firms and workers.  Many workers, with equivalent experience and skills, living in rural areas, can now begin to catch up with the much higher wage scale of those working in large urban areas.  The playing field is starting to level off. 

For example, this past July, a WDC-based client of mine conducted an in-depth analysis and identified an overall 21.5% labor cost reduction measured from 2019 – 2023 by transitioning to a mostly RWE model.  At the same time, those candidates they hired from places such as Roanoke, Lynchburg, Richmond, and Virginia Beach increased their salaries on average by 18.5%.  A total win-win. 

Most of the prevailing pro and con arguments I read and listen to regarding RWE miss the mark.  It’s not a zero-sum game. It’s a highly individualized choice, and in many cases can be mutually beneficial both to the employer and the worker.