CEOs are at their wits’ end – they don’t know how to get their employees back in
cnbc.com
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Nobody is talking about the challenges WFH brings for small employers since we are all so fascinated with the positives so far. As a small business owner, you want to hire an employee out of state ? Just 1 employee on W2 ? Great. Go setup and register your company in that state and deal with crazy paperwork even for 1 employee. Oh you want to offer them health insurance ? Hmm, your insurance company doesn't operate well in that state. Now what ? Ok you try to come up with separate reimbursement/comp for that employee. Oh, your state offers Sick leave by law but then what do you do for employee not in that state ? Lot of hurdles.
Yes, there are services like remote.com etc these days but they don't really help you build your own organic team in house. You cannot 1099 everyone especially if they are only working for you as a full time employee (IRS won't like that). You can get away hiring foreign contractors but until there is real legislation to hire people anywhere easily, this is a pain in the neck especially for smaller companies. Large companies should have no excuse.
I am all for remote (have some of our best employees remote) but as a business owner, it is a lot of hurdles legally to go through. Yes Gitlab does it and all but they have cash to spend and circumvent lot of BS regulations with employment and taxes. I want a federal law in the United States that allows you to hire anyone in any state without doing the "Register in my state" bullshit and all that nexus crap. We can then talk a big game.
In general, the overall trend seems to be people moving away from urban areas but staying in cities--with a few obvious exceptions where a greater metro area spans into neighboring states as in New England.
We do this and are hiring remote largely fine in the US:
- book keeper shared w multiple startups
- who handles most states + outside person for rest
- we also use Gusto here, though they did screw up one key state and never took responsibility, so we will be leaving them
We will be switching to an intl'l friendly PEO so we can do intl better, if folks have recs
Anyways if you have enough $ to hire people, I strongly recommend paying a bit: they can do it way faster and properly, including maintenance, so you gain time and $ vs you doing it slowly and at opportunity cost. Problem still exists, but a small but of $ per new hire makes it go away.
I do occasionally worry about rogue states / districts who increase our legal risk, like parts of Texas...
We've used ADP to handle the taxes, unemployment, and payment paperwork, but several providers in this space. Insurance seems to be flexible enough to handle as well.
Zenefits and others work fine to ensure benefits are built appropriately.
If your company is registered in Delaware but your office is in California, you’re also required to register your company in California. Repeat this for every state you operate in or have employees.
That's the opposite. Yes, you can register someplace like Delaware and not have any employees there. But you can't have employees living in Delaware and not be registered there.
1. State income and payroll taxes
2. State unemployment insurance
3. Workers compensation insurance
For each of #1 and #2, you have to:
- calculate how much you owe
- calculate how much the employee owes
- pay the money
- file regular returns
Of course, before you can file a return, you have to register your company with the state tax bureau and the unemployment insurance agency in that state.
That said, I agree that this needs to change and it needs to change now. I’d write my senators, but I live in Texas. Unless I was an insane conspiracy theorist nut job with 50000 Facebook “friends”, they don’t give a shit. Fucking sociopaths, man…
Many states have labor departments whose rules and laws apply to you if you have even just 1 employee in their state. There has recently been a lot of discussion on HN regarding Colorado's law around requiring salary ranges be posted for job openings. If you have even a single employee in CO, your business is covered by this legal requirement.
We use Gusto to manage much of the ongoing headache of maintaining legal compliance across multiple regions. However, even with that there's often a manual bootstrapping process that has to happen that's still the old school bureaucratic navigation approach.
In some cases folks like Zenefits, Gusto, and ADP have services and capabilities to act as an agent for your business to make all the state-by-state stuff as invisible to you as possible, but it's not a perfect system. That said, we've not found the caveats to be particularly onerous either, so YMMV.
But I’m there with you. It should be as easy as “1099-ing,” and frankly that is the easiest option for us if they’re willing to accept that arrangement (many won’t, because they don’t want to hire a CPA or track their own write offs).
Like I said, tons of businesses still do this, and there are ways to structure the job so that someone can be correctly designated a 1099 contractor (e.g. they have more flexibility over their hours and equipment). Still just wanted to call this out because lots of people seem to be under the misperception that you get to just arbitrarily choose your employment classification.
edit: spelling
One way smaller companies do accomplish this is with "professional employer organizations." A PEO is the legal employer of the full-time staff, provides their insurance, processes their W-2s, etc. An executive at the company is the actual day-to-day manager of the staff, and the company pays the PEO to cover all the staffing expenses. Not as relevant when you also want to pay staff with equity, but it's a fine option for paying staff with cash and benefits in multiple states or countries.
Small companies do hire employees in multiple states. I've been in that position myself and know many other small distributed companies. But it is paperwork and cost.
[ADDED: Maybe it's fine but it would be a red flag for me.]
Honestly, if you are in a small company, having a PEO helps tremendously for both being an employee and the company's management.
> So I'm not really being hired and I have to deal with this PEO if I have issues with insurance of any sort.
(1) When would your employer ever have to deal with insurance issues even at a F500? That's all done directly with the carrier unless it has to do with the benefits calculation, which would be no different to do at a F500 with benefits and one that uses TriNet.
(2) If you did actually have to deal with insurance issues, trust me you want to go through a larger organization to deal with carriers. Carries don't give great customer service to small biz / independent LLCs.
(3) Yes, you legally are an employee of <insert PEO here> but who cares? There are few instances where this actually has an effect.
Large companies will get involved when there are insurance-related issues. How effective they'll be is another question.
Uh, anyway, yes, PEOs seem like good ideas. :)
We use the Qualified Small Employer Reimbursement program which lets us reimburse our employees for the health insurance premiums and other health-related expenses they pay as we don’t qualify for a traditional group plan.
We use Gusto for payroll but have to spend a not-insignificant amount of time wrestling with each state’s system. Plus there are a growing number of cities or metros that you have to register with as well.
This is what PEOs and EOR companies are for.
> Yes Gitlab does it and all but they have cash to spend and circumvent lot of BS regulations with employment and taxes.
They likely use a PEO/EOR for their foreign employees.
These are known issues with known solutions, they're just costly.
Just some of the players:
when i see "at their wits' end" i take that to mean "we've tried nothing and we're all out of ideas"
The only case for people going back to the office are people who want to be in an office environment. And I think those people are disappearing rapidly. My partner was one of those people who wanted to get back to the office and has had a pretty significant change of mind in the last year.
What I want to know is who are these CEOs that they are only just dealing with this issue two years into this pandemic when lots of people were already discussing this?
If these folks are so behind the curve on this issue then why are they even CEOs in the first place?
> "we've tried nothing and we're all out of ideas"
I always love this
Just like it took a large exogenous shock to get companies to let people work from home, it's going to take another shock to get people back into office.
That shock will come in the next economic downturn, and employment market tilts in favor of employer.
Outside the U.S., people have long returned to office, and the trend is continuing.
Longer term, it will become more clear which industry and what companies WFH is a competitive edge vs liability.
Highly productive, self-motivated, competent workers are in certain sectors are over-represented on HN, but that's not the norm.
Having worked in sectors with distributed and WFH workforce, tighter supervision and protocols are required to keep competitive edge.
If only someone had done something about 18 months ago and stopped the virus from blowing up into a economy-wrecking disaster.
Mitigation: isolation, quarantine, social distancing of those suspected, their families, and the elderly
Suppression: All of the mitigation measures, but applied to the entire population, plus closure of all non-essential activity
We also have one we didn't have 18 months ago: a vaccine, and vaccine mandates.
CEOs could be going to their elected representatives and pushing hard for these to happen. Why aren't they doing that? Why is the US content with ineffective half-measures that are prolonging the economic disruption that CEOs are so concerned about? Instead of say 6-9 weeks of disruption followed by a safe return to pre-pandemic activities, the US re-opened too early because of pressure from business. They weren't thinking long term, and now instead of short-term pain we have entire industries and supply chains disrupted. And yes I know this a global thing but the failures of the US to behave as a world citizen are, arguably, driving the continued global disruption.
An innovative mix office/remote work ought to be able to address such challenges. I prefer remote work myself, but I am fully empathic with people who prefer office work. I know people with families who don't have the space or quiet to work from people. People living in tiny apartments that just want to be elsewhere. People with roommates.
Stating the choice as "either go back to the office or work from home" is a false dichotomy.
On the flip side, if you work at a company that has employees across time zones, and your team is in say NY and SF, what value does mandating "in-person" interaction have? You're not going to fly everyone from both coasts to a meeting all the time. I'm not even sure C-level corporate board meetings, where companies seemed to be more than willing to fund travel, were fully in-person before the pandemic.
Perhaps what's really up for discussion is the concrete value of in-person, in-the-office, working. I know there are some that would say people being together in the same space is essential, and at the other end there are some who say the cost outweighs any value. The truth is that people are different, and treating individuals as cattle doesn't have much nuance.
ADDED: If you have mandatory regular in-person work, that does mean you now need to fly in people who are actually remote with the cost and travel time that implies or it means that "WFH" means working from a ~2 hour drive/train ride from the office.
So IMO if CEOs want to keep the value of those sort of interactions, (ie have everyone in the office) do waaaaay more communication, more cross-org meet-ups and mixers, have people come into office on same day for lunches and social activities
The thing that "being in an offi e" facilitates is cross-pollination of ideas, just like a city does. And what facilitates that is not working but interacting
I was not picking up on gossip
...
It makes everything harder.
To me, this suggests a company that isn't communicating effectively - side-channels like gossip were filling in the gaps when folks were in-office, but now they aren't.Fixing _that_ problem may or may not be a matter of putting butts-in-seats again.
If you want workers to spend 1 - 2 hours a day getting to the office then pay them.
Asking us to return to the office is asking us to effectively take a pay cut and reduce the hours we enjoy with our families.
I'm not sure it's as black and white as that!
I've worked from home for a number of years and I used to think people were insane to want to go into an office but I've changed my tune in the last year or so for one simple reason: hardly anyone is set up to work from home!
At my last company (small, only 21 employees - they got rid of their office earlier this year), I was one of only three people in the video calls with an actual home office. Everyone else was working from a living room, bedroom, or in two cases, the couch with a laptop on their knees.
One of the couch-workers left at around the same time as me recently for a company that worked from an office for the very reason that she could work from an office.
It's horses for courses: some people like it and have an actual space to work properly and others don't. In my case I have a desktop computer, two monitors, a comfy chair, a motorised stand-up desk etc. I'd never get this level of comfort in an actual office.
As well as the physical space issues, there is the psychological aspect too. I spend 5 days a week in the house all day by myself. I'm a contractor so making office friendships isn't something that motivates me (doesn't mean I hate everyone, just some people :D). I'm fine with that. I have a couple of friends I've known for many decades and that's enough for me. I can also get work done no problem and still put the washing on, nip out for groceries etc.
I know of colleagues that crave the human interaction... which is fine. I don't. I get enough from my family and the daily (and mostly pointless) video calls.
However, if I had to work from a laptop at my dining room table, It'd suck hard!
My view may be biased by being young, not having a family and living alone. Though I'm glad that my older collegues are able to spend more time with their family. My parents didn't have WFH when I was young, and I can easily see how a day or two for each parent could have made everything better.
As a final point, as I don't have a very active social life, going to the office fills that "interacting with humans face to face" need for me. That's not a reason to force others to come, of course, but if society switch to more WFH, I hope alternatives will emerge for people like me that have a more "passive" style of socializing. Vocal chat just isn't the same, and webcams don't help.
Gee, i wonder why!
My employer asked in a survey what would make you feel OK to return to the office and my reply was "3 months of <5/100k cases in the metro area, 80%+ vaccination rate in the metro area, and vaccinations approved for children", all of which are both true answers and externalities they cannot control at all.
Every single time we had a lockdown, or increase in restrictions, we then had the opposite happen shortly after. Restrictions were lifted arbitrarily or too soon, as well as push-back from a small minority who is either tired of how the government is/was handling the situation, in a dire living situation or being bombarded with misinformation and spreading it.
Why is it that in a country as developed and with the education level of the USA, we have to incentivize people to take a drug that could save them, either from death, a horrible experience or from chronic ailments after said experience in some cases.
We quite literally had states offering prize money, beer, food and other things so that people would get vaccinated. The fact that these programs had to exist in the first place is ludicrous. The fact that so many people who identify as anti-vaxxers, anti-maskers are so open about it and proudly and loudly scream it at others is in itself insane.
For the first wave of COVID, the world handled it as best as it could, for how prepared it was (not very). But after so many waves of COVID spread, we're still handling it poorly, with so many wrong or unclear voices that it is staggering.
I'm sorry for rambling on, but this topic is exhausting and a never ending cycle of doing without committing to it, which keeps us in the cycle.
If you have to qualify your text with this, you should reconsider posting it and perhaps revise the wording or message.
I can easily find room for "I'm sorry for rambling on, ..." to account for people not feeling like there's room for their input. Social anxiety is a thing.