Elon Musk’s back-to-the-office order will undermine Tesla’s future

In the long run, Elon Musk's order to return to the office will have a negative impact on Tesla's future

According to an email sent to executives and leaked on social media, Elon Musk recently demanded that all Tesla employees return to work full-time. People who don't want to come into the office can pretend they are working somewhere else, according to Tesla CEO Elon Musk. This top-down approach, based on mistrust and false assumptions, goes against what research has shown to be the most effective practises. It's about a false sense of security that's going to undermine Tesla's productivity, engagement, creativity, and ability to attract and retain top talent.

Employees pretending to work from home is one of Musk's false assumptions. Since the beginning of the pandemic, researchers have used surveys and behaviour tracking to show that workers who worked remotely were more productive. There have been more recent studies showing that working from home is more efficient than working in an office, with efficiency rising from 5% higher in the summer of 2020 to 9% higher in May 2022, as companies and employees alike have grown more used to working remotely.

According to a leaked email from Tesla CEO Elon Musk, those who work remotely are "phoning it in." He emphasises the importance of being visible, and he sets an example for his employees by working long hours himself

To place such an emphasis on making employees visible in the workplace shows a leadership style that is steeped in tradition and based on the fantasy that one has total command. We tend to overestimate how much we have control over external events when we have this cognitive bias, which is described as such. Those in positions of authority who feel the need to micromanage their staff are particularly susceptible to this tendency. They believe that if everyone is in the office, they will be more productive.

In reality, research shows that even high-performing and productive in-office employees work far less than an eight-hour day in total. They work anywhere from 36% to 39% of the time they're awake. When it comes to other activities such as checking social media and reading news websites, chatting with colleagues about non-work issues, and even looking for a new job, the rest is spent on these activities.

It's not just that Musk's desire for control is utterly irrational 

Also, it goes directly against a principle that we know is critical for office-based workers: the desire for autonomy.Studies show that we perform our best work when we are intrinsically motivated, which is characterised by a sense of autonomy and control over our work. When employees are given the freedom to make their own decisions, they are happier and more productive. In a post-pandemic world, workers need the freedom and control to choose where and when they want to work, rather than being forced to conform to the "normal" of the time before the pandemic. Tesla CEO Elon Musk claims that threatening employees with termination will help Tesla create "the most exciting and meaningful products of any company on Earth," but a study of 307 businesses finds that allowing workers more freedom leads to more innovative products and practises.

Contrast this with the more flexible work policies of other companies, where employees are clearly not trusted. That includes companies where Tesla's employees might work, such as manufacturing and technology companies. This approach is referred to by the manufacturing firm 3M as "trust-based." It is possible for 3M employees to "design a schedule that works best for them."

Other than the Musk Way, I've worked with a number of promising non-profits. An "Excellence from Anywhere" modality has been developed by one of my high-tech manufacturing clients, Applied Materials. With an emphasis on teamwork rather than command and control, leaders at Applied work closely with their employees to determine what works best for them and their respective teams. When it comes to innovation, Applied is taking advantage of the best practises for facilitating innovation in remote and hybrid work environments, such as virtual asynchronous brainstorming.

When it comes to hybrid work, the Information Sciences Institute at the University of Southern California is taking a "leadership position" by adopting research-driven approaches. It aims to give its employees as much freedom and flexibility as possible.

Several studies have found that 40% to 60% of employees would look for a new job if they were made to show up to work against their will

 A forced return to the office will almost certainly result in higher departure rates at Tesla, and that is something I am willing to risk losing my job over. After all, a member of Musk's executive team leaked his emails when he returned to work for a reason.

There was immediate resistance to Musk's call for an office return from employee representatives in Germany, which has the company's first-ever employee-run union. Those who lack union representation will vote with their feet. Recruiters, according to people I know in the industry, are already using Musk's words to narrow their pool of potential Tesla employees. Tesla will suffer serious losses as a result of Musk's delusion of control and erroneous assumptions, while companies working to reinvent the future of work will benefit.

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