While there is no doubt that the pandemic has brought about a significant amount of misery and suffering, it has potentially opened up opportunities for new innovation and creativity, particularly in the space of workforce development and management. Indeed, what we are experiencing may end up deciding how work is distributed and managed over the next few decades.
One could argue that the changes that we are seeing in the broader workforce environment have been ongoing throughout the startup ecosystem prior to the pandemic. Particularly when it comes to the rise of distributed and remote work.
Even before the pandemic, startups were being forced to consider alternative work arrangements, particularly in Silicon Valley. The high cost of living in the San Francisco Bay Area already was forcing many startups to consider who they wanted to hire in the Bay Area and how they wanted to work.
Indeed, many cash strapped startups were already considering finding engineering talent outside of the Bay Area. There were a number of reasons for this including high cost of living salary demands, competition and overall talent shortages in the Bay Area. As such, even before the pandemic alternative tech centers were starting to rise such as Austin, Texas, Denver, Colorado and Miami, Florida.
As some startups have stretched where their talent is located, other startups are taking the opportunity to fill in the gaps in terms of how work is accomplished. The rise of remote work has presented new challenges not only from a technology perspective but a cultural perspective as well.
Indeed, it is less the technological gaps that startups and businesses overall should be worried about but the cultural gaps. While it can’t be said that there are not significant technological gaps that need to be addressed such as connectivity, collaboration tools and overall processes, the reality is that cultural gaps are probably the most urgent to address.
There are many who would argue that at the end of the day the cultural gaps aren’t the biggest elements that startups need to be concerned with. Those individuals would argue that building a working product and selling it as aggressively as possible are the only two primary concerns that startup founders need to focus on.
However, with the pandemic, cultural concerns are increasingly coming to the forefront. From the Black Lives Matter (BLM) movement to the #MeToo movement, there are a number of cultural concerns that are coming to the forefront that are impacting how we work. These considerations are in addition to a newer factor which is how to build a cohesive culture in the context of remote work.
Putting aside the broader social change movements that are occurring at the moment, the rise of remote work has caused both workers and leaders to question what the true meaning of corporate culture is. Is corporate culture merely a set of principles and values that are commonly shared throughout individuals within the organization or is it something more? Does it require physical connection to build the emotional connections needed to truly facilitate work?
The ongoing debate is only just beginning and the end results are yet to be final. There are some startups that have decided to be the vanguard of remote work and stated that their culture is “remote-first”. From Coinbase to Twitter to Affirm, these startups believe that their culture will thrive regardless of where individuals are located.
Others are taking a variety of approaches. Some are attempting to revert back to the traditional office setting where it is mandatory to work in office while others are taking a more nuanced hybrid approach.
Many have argued that what approach will ultimately win is up for debate but there are others who don’t believe that it is a debate but a reorganization of not only how we work but who individuals will decide to work for. In many respects, as with everything in life, it is not about black and white but about the gray. The approach to how we work is no different.
Ultimately, how individuals and the organizations they choose to work for is a reflection of the corporate culture, something that many are only starting to understand. Yes, processes, efficiencies and focus are critical to ensuring a startup succeeds and grows but, increasingly, culture is playing a part as well. Not only in terms of talent acquisition and management but also market growth as well.
In many respects, the debate concerning the decentralization of work is perhaps symptomatic of a wider tipping point concerning how we organize and influence each other individually as a whole. The reality is that increasingly old forms of “command and control” are being challenged at a greater rate than ever before.
Individuals and businesses had, in the past, a begrudging relationship with each other. Businesses, whether startups or corporates, provided financial stability and structured growth in exchange for a portion of their employee’s time and for the employee to potentially deal with sometimes mundane work. That relationship though is dramatically being disrupted.
Technology has not only provided us with the ability to work remotely but has increasingly shifted the power from businesses to entrepreneurial individuals. Especially, in the technology sector, developers have a plethora of options to choose from thanks not only to their professional choice but technology as well.
Increasingly, technology has enabled entrepreneurial individuals to get their projects off the ground faster, further and more independently than before. In some respects, it has freed individuals to do what they want to do and what they prefer to do rather than work for someone else. That being said, it has also created growth issues particularly when it comes to corporate culture.
With so many entrepreneurial individuals taking advantage of their independence, they have not only expanded the overall ecosystem but the economy as well. No longer are individuals purely tied to large corporations for their overall livelihoods but they have choice in terms of the size and trajectory of the businesses they wish to work for. While the ecosystem has been expanded, it has put more pressure on startups and businesses from a talent acquisition perspective.
In many respects, startups and businesses are getting hammered from all sides when it comes to talent acquisition and management. High performing talent are creating startups that permanently lessen and offer greater benefits that no employer could counter which is sizeable equity and the potential for a windfall payout. In addition, not only are they offering better professional opportunities such as faster promotions and interesting projects but the ability to potentially contribute to a culture that truly reflects their own beliefs and values.
Where does it leave startups and businesses? The future is unknown at the moment. The changes that are occurring in society and work have no clearly defined path at the moment. While some may find this chaotic, one could argue that this part of a grand experiment that has yet to come to a formal conclusion.
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