Reverse telecommuting and Urban Centers

Some recent news stories bring up the prospects of reverse telecommuting. Almost 45 years ago I wrote a piece describing the dynamics of central office versus employee residence location. The point was that, as companies become established, the residence locations of their employees tend to form a circular normal distribution — a bell-shaped curve — centered on the headquarters
(HQ) office. I gave some examples of what happens when the HQ pulls up stakes and moves to a new location some distance away, usually because the CEO wanted to both have a short commute and live in the suburbs. The initial impact is that while the CEO and other employees living nearby have a shorter commute, the average employee has a longer commute to the HQ. The result often is turmoil, dropping morale, lowered productivity and attrition. The attrition comes from those employees who can easily find jobs near their existing residences and perceive little penalty in leaving; often those are the most productive employees.

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