'It's Time To Admit That Remote Work Doesn't Work': Former PayPal Executive Says WFH Is No Way To Build A Great Company — And He's Not Alone

3 Jul 2023

The phenomenon of remote work has witnessed an extraordinary boom in recent times. Employees relish the freedom of managing their own time and the relief of avoiding the daily hassle of commuting. Meanwhile, organizations reap the benefits of a wider range of skilled individuals as they are now able to recruit from any corner of the globe.

However, David Sacks, a former executive of PayPal Holdings Inc., does not approve of work-from-home (WFH) policies.

In a recent tweet, he stated that it is high time to acknowledge that remote work is ineffective. According to him, working from home on Fridays essentially equates to having a four-day work week. Similarly, engaging in full-time remote work equates to only working for two days in a week.

Sacks highlights that when individuals are away from the workplace, all exchanges necessitate prior arrangement. Consequently, a significant amount of information exchange fails to occur.

He came to the conclusion that working remotely is an excellent way of life, but not necessarily the best approach to creating an exceptional company.

Sacks is quite knowledgeable when it comes to creating businesses. He held the position of the first chief operating officer at PayPal. Afterwards, he established the enterprise social networking platform Yammer, which was purchased by Microsoft Corp. in 2012 for a noteworthy sum of $1.2 billion.

And he is not the sole individual from the PayPal Mafia, a collective of ex-employees and founders of PayPal who proceeded to establish other technology companies, who holds a negative opinion towards the idea of working remotely.

Real estate investment has become much easier than before. Ordinary investors can now become landlords with an investment as low as $100, all thanks to a startup that has received support from Jeff Bezos.

According to reports, Elon Musk has recently acquired a vast expanse of 6,000 acres near Austin. Now, let's explore some ways to capitalize on the city's anticipated expansion before it becomes inundated with a wave of innovative professionals led by Musk.

Is Working Remotely 'Morally Wrong'?

Elon Musk, the chief executive officer of Tesla Inc., is probably the most renowned individual among the PayPal Mafia. Musk has brought about a remarkable transformation in the electric vehicle sector through Tesla and is also achieving remarkable progress in the realm of space exploration with SpaceX.

And he's not convinced about the idea of working remotely, either.

"I firmly believe that individuals are considerably more effective when they are physically present," he expressed during a recent conversation with CNBC.

For Musk, the problem goes beyond efficiency.

He pointed out that employees involved in the production of consumer goods cannot perform their duties from a remote location. It is morally inaccurate to presume that these workers must be on-site while you have the freedom to work remotely.

It's absolutely absurd that you're choosing to work remotely while forcing those who produce your vehicle to toil in the factory. And let's not forget about the individuals responsible for preparing your meals; it's unjust to deny them the opportunity to work from home. Even the professionals who fix your house are unable to enjoy the convenience of remote work, yet you seem to think it's morally acceptable for yourself. This is truly twisted.

Musk went as far as claiming that those belonging to the laptop class are residing in a fantasy world.

Remote Stocks Vs Office REITs

The emergence of remote work has caused notable changes in the investment scene.

As an example, businesses that offer tools for remote work collaboration, services based on cloud technology, and platforms for digital communication have seen substantial chances for growth ever since the COVID-19 outbreak began.

Currently, there are exchange-traded funds (ETFs) available to assist investors in accessing this particular market sector.

Take, for instance, the Direxion Work From Home ETF (NYSE: WFH) which seeks to follow the Solactive Remote Work Index. It contains 40 stocks, which comprise companies that offer well-known tools and services for facilitating remote work like Microsoft Corp. (NASDAQ: MSFT), Alphabet Inc. (NASDAQ: GOOGL), and Zoom Video Communications Inc. (NASDAQ: ZM).

Although remote work has brought forth fresh prospects for certain firms, it has also noticeably affected the realm of commercial real estate, specifically office edifices. This alteration in work dynamics has compelled companies to reassess their prerequisites for office space, resulting in changes in demand.

However, if more leaders adopt the perspectives of Sacks and Musk and decide to have their employees return to physical workplaces, there is a possibility of positive outcomes for office properties in the future.

Investors who are interested in taking a chance on a rebound in this industry can explore real estate investment trusts (REITs) that specialize in office complexes, like Boston Properties Inc. (NYSE:BXP) and Alexandria Real Estate Equities Inc. (NYSE:ARE).

If you seek real estate divisions that are slightly more predictable, you may consider exploring rental properties for single families. Despite the uncertainties surrounding remote work, the need for housing will never cease, and an increasing number of individuals are opting to rent rather than purchase. Presently, there are even possibilities to invest in rental properties with a mere $100.

A startup backed by Bezos enables you to become a landlord by investing a mere $100.

Bridging the Economic Divide: Profitable Results Provided to Investors and Occupants by Investment Fund

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This post titled 'Acknowledging the Ineffectiveness of Remote Work': Former PayPal Leader Claims WFH Is Inadequate for Company Growth — and He's not Alone was first published on Benzinga.com.