Google has been losing the race towards AI startups like OpenAI and Anthropic. With this, the former Google CEO, Eric Schmidt says that it is due to remote working.
Speaking at Stanford University, Schmidt pointed out that the relaxed approach to office attendance might be making it difficult for Google to keep up with more aggressively working startups like OpenAI and Anthropic. He said, “Google decided that work-life balance and going home early and working from home was more important than winning.” The debate around remote work has intensified in recent years, with many companies, including Google, adopting hybrid models post-pandemic.
Many believe that this saved the workplace in many instances, but Schmidt stands by the fact that a lack of a traditional office setting may get in the way of on the spot creativity and team work, which are necessary traits in this tech world that keeps advancing. He thinks that “the reason startups work is because the people work like hell.”
This could be argued by many modern companies with policies that put the workers’ mental and overall wellbeing as a top priority and as a result see results and a unified workforce due to employees being happier and more motivated to work.
Remote Work Vs Office Work
The discussion around remote work has become a central theme in how companies view productivity and innovation. While some leaders believe that physical presence in the office is essential for maintaining a competitive edge, others argue that flexibility can lead to happier, thus more productive, employees.
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Google’s stance on remote work is designed to provide employees with a balance between personal life and work demands, as explained by Google’s Chief People Officer, Fiona Cicconi. “Of course, not everyone believes in ‘magical hallway conversations,’ but there’s no question that working together in the same room makes a positive difference,” Cicconi said to CNBC. For this reason, Google is and has been working using a hybrid model in most cases.
Its also worth mentioning that OpenAI does not necessarily use a full-on work from office structure, as they also operate on a hybrid model, with workers such as their developers working from home.
Could Remote Work For Startups?
Remote models can still be great choices for many startups, and for several reasons. For starters, as a business that has to be mindful of initial expenses, not needing to invest in physical office spaces can save a lot of money. In the context of the UK, according to Orega, the average rental cost per sqft in London is £120.28, making the average cost per year about £12,028 per sqft. For context: one office cubicle is around 100 ft.
While the rental number varies according to where the office space is, its worth remembering that right now, London is the best place for startups and investors, especially AI startups. Without paying for offices, while also saving employees on commuting expenses (or allowances payable), a lot of capital is saved.
Another big factor is that when you operate remotely, you open your startup to diverse workers with a range of different skills, as they are all from different places. Although there are sometimes policies when it comes to employing internationally, it allows for a team with variety.
