Spotify has noticed no negative impact on either productivity or efficiency since it adopted this work model, along with attrition rates dropping by 15%
Spotify first introduced the work model, which allows staff to determine how often they want to work from home or in the office. In February 2021, countries began easing COVID-19 restrictions.
Berg said she has yet to find a valid reason to mandate employees to return to the office.
“We are a business that’s been digital from birth, so why shouldn’t we give our people flexibility and freedom?” She added, “Work is not a place you come to. It’s something you do.”
Since adopting this work model, Berg said Spotify has noticed no negative impact on productivity or efficiency.
In addition, attrition rates have dropped by 15% since this decision. According to the report, talent retention is essential for innovation.
“While most CEOs were previously interested in the product and finances, they now realise you can’t develop a great product if you don’t have great people,” Berg said. “That is why more CEOs are trying to understand what motivates people.”
However, Spotify is still retaining most of its office space and tois looking to downsize it. The company is also trying to find things that make people want to come to work rather than forcing them to.
An example is its regular ‘listening lounge’ sessions, where popular artists perform in its offices. These include Rag ‘n’ Bone Man, Olivia Dean, Tom Grennan and Cat Burns.
Spotify employees are also encouraged to meet in person one week of a year during ‘core week’ when each team is expected to come together to discuss strategy collaboratively.
This is done because Berg acknowledges that “We (The company) know what happens when people sit down and you can actually look each other in the eye. It’s different to being on screen. Some people like to come into the office and meet people.”
However, despite all this, the organisation laid off 1,500 employees in December, reducing its headcount by 17%, according to the report, which cited as rising interest rates and investor push for cuts to preserve profits as reasons for having done so.
