Why Big Companies Don't Trust Remote Work

Sergei Isakov , co-founder and COO at ITUNIVERSUM LLC

Every coach, headhunter, and business consultant praises remote work. They talk about saving on office space, the convenience for employees, incredible efficiency, work-life balance, and a dozen other benefits that paint an ideal picture of the future.

But despite all this, we're seeing a trend where big companies are pulling the plug on remote work. If it's so great, why is it going so wrong?

I won't dive into the stories of employees who secretly work full-time for two or even three companies at once. You might argue that your non-working time is yours to use?as you please. But after working 18-hour days on multiple projects, you returned to your primary job wholly burned out and unable to perform your duties as promised. There are plenty of examples online, and the research on this is pretty grim.?

And let's remember those who steal from their employers. This isn't new—it's all the same whether someone swipes goods from the warehouse, falsifies hours, or wastes paid time. But let's set that aside for now.

A True Story: The Remote Shift Experiment and Business Chaos

Let me give you a real-world example of what's happening behind the scenes with this "all-remote" setup. It's a real story about a friend of mine. He runs a mid-sized industrial company that's a leader in its market, known for great business metrics, sustainable growth, and salaries higher than the market average. Following the trend, he let almost all his staff work from home.?

In the first month, things went downhill fast. The company almost hit rock bottom, with all metrics sinking to unprofitable levels and missing every tactical goal.

"Maybe I'm doing something wrong," he thought. Determined to fix it, he revamped the management system. He spent much time and money on new task-setting, control, distribution, motivation, and responsibility systems, even bringing in pricey consultants.

Eventually, he managed to claw the company's metrics back to... 43% of their previous level. But now, a third more staff were needed to handle business processes, and operational costs doubled.

By the third month, the situation was dire. Accounts receivable ballooned to half a year's turnover, and sales continued to plummet.

Employees started asking for raises, complaining they had to work late from home, and wanted double pay for overtime. (Working during the day was tricky—kids, house chores, gym trips, massages, you name it. The routine was draining.)

By the end of the fourth month, he sent a clear message: show up at the office tomorrow or be fired. About 60% showed up. The rest? They didn't even read the email! They were fired on the spot. Another 15% of those who did show up were also let go. Salaries were slashed for everyone else.

A core group of about 20% was identified as the company's profit drivers. Their wages increased, and they were free to choose their teams.

The company bounced back in six months. Growth returned, metrics normalized, and the staff was leaner and more focused. Everyone involved was informed about the experiment and reminded that business priorities are the foundation of the company's relationship with employees. Respect for employees remained, but the company also expected employees to respect its needs.

As leaders, we should remember that we are responsible for the business's survival and our obligations to investors, banks, and employees.

Focus on the common good, and both you and your employees will thrive.

I think we're moving towards a hybrid model for trusted staff (which we're already using at ITUniversum). However, businesses and employees need more time to prepare for it fully. This model is still being fine-tuned; unfortunately, the adaptation process is taking a toll on some businesses. Jobs are being cut, and it's bad news for both sides.?

Businesses will likely adapt faster than their employees, and I have a feeling I know where we're headed. But I can tell you, potential candidates and current employees will not be thrilled about this.