Billionaire CEO Claims Decreased Work Ethic Among Remote Workers during Covid

Private-equity billionaire Stephen Schwarzman believes that office workers did not work diligently enough during the Covid-19 pandemic. The CEO of Blackstone, whose wealth is valued at approximately $32 billion, expressed this viewpoint to a group of investors at an upscale conference in Saudi Arabia, commonly referred to as "Davos in the Desert." According to Schwarzman, individuals who worked remotely during this period simply did not put in the same level of effort, regardless of their claims to the contrary.

Many Americans would argue that they have never worked harder. Parents were often faced with the challenge of managing constant Zoom meetings and Slack messages, while simultaneously assisting their children with remote learning due to school closures. Additionally, some had to take care of infants and toddlers without access to daycare facilities, or support elderly family members who were quarantining with them.

To catch up on work, some parents ended up working late or starting early or putting in hours on the weekend.

Americans in particular reported spikes in stress levels during Covid.

In August 2020, a report by the Commonwealth Fund revealed that a significantly larger proportion of US adults, compared to other countries, reported struggling to manage stress, anxiety, and intense sadness on their own.

Schwarzman, discussing the effects of remote work on Tuesday, specifically mentioned its impact on the commercial real estate market. This is of great relevance to Blackstone, as they are heavily invested in the real estate industry.

"Amid the pandemic, individuals grew accustomed to staying within the confines of their homes," stated Schwarzman. "Interestingly enough, this shift actually brought financial advantages for them as they reduced their workload, regardless of what they claimed. Additionally, they saved on transportation expenses and meals by preparing their own lunch at home. They were able to bypass the need for purchasing expensive attire, resulting in higher incomes."

The formal title of the conference conducted in Saudi Arabia is the Future Investment Initiative. In the same panel discussion, Jamie Dimon, the CEO of JPMorgan Chase, shared that 60% of their staff now operates in the office for the entire workweek, while 30% are obligated to physically be present for three days. "We closely monitor this," added Dimon.

The JPMorgan boss added that the banks managing directors are required to be in the office 100% of the time.

"I dont think you can lead people and work from home," Dimon said.

However, a significant number of employees continue to work remotely to some extent presently. To illustrate, a survey conducted by the Partnership for New York City reveals that roughly 58% of office workers in Manhattan were physically present at their workplace on an average weekday during the late August and September period. This percentage represents an increase from 49% in September 2022, but a decrease from the pre-Covid-19 figure of 80%.

Only 12% of office workers in Manhattan are currently working in the office on a full-time basis, as indicated by the survey.

Schwarzman, CEO of Blackstone, approximated that 20% of office buildings in the US are unoccupied, with an additional 20% being leased but not utilized. He further projected that companies would reduce their office space leasing when their current leases expire, thereby rendering numerous office buildings, particularly older ones, financially unsustainable.

"Thats going to have a very bad ending," Schwarzman said.