Career risks of remote work for Gen Z: How to avoid the pitfalls

While remote work gives young people flexibility, autonomy, and a commute-free day, research shows that leaving the office can have a negative impact on the start of your career.

A report from the New York Fed this month found that remote work is likely the main reason for the spike in youth unemployment. The National Bureau of Economic Research also found in a paper updated this month that increased remote work is making it harder for young workers to get feedback and advance.

“Early in your career, a significant amount of learning can be gained by observing how your colleagues run meetings, overcome conflict, build relationships, and make important decisions,” says Megan Hellerer, executive coach and author of Directional Living. “It’s hard to recreate that moment in Slack or Zoom.”

In fact, an NBER study first published in 2023 found that software engineers who sat closer to their teammates received approximately 18% more feedback and improved the quality of their code. In particular, the researchers found that “benefits are concentrated among younger employees with shorter tenures.”

“Many of the benefits of remote work are self-evident,” says Joseph Fuller, professor of management practice at Harvard Business School. “The risks are more subtle, but significant.”

Here’s how to balance the pros and cons of remote work at the start of your career.

Nicholas Bloom, an economics professor at Stanford University who has written about the benefits of remote work, said he has this advice for his students: “Go to the office at least three days a week for the first five years,” Bloom said. “It’s very helpful for career development.”

“While not all five days are necessary, going fully remote early in a career should ideally be avoided,” Bloom added.

That’s because not going to the office at all means missing out on guidance, strong connections and observing others, Bloom said. “A lot of the learning comes from quietly observing how people behave, work norms, arrival and departure times, software, etc.,” he said.

Being in the office with others at least a few days a week is the best way to improve your verbal communication and presentation skills, as well as hone your negotiation and conflict resolution abilities, all of which are essential for advancement, Fuller says.

“If interactions with colleagues and supervisors are limited to remote interactions, it is unlikely to provide workers with significant opportunities to deepen their social skills,” he said.

“How does your boss evaluate your social skills?” Fuller said. “Through observation, not by looking at a monitor.”

Douglas Bonepers, a certified financial planner and president and founder of Born Fied Wealth, a wealth management firm in New York City, said younger workers may prefer lower-paying hybrid jobs to higher-paying fully remote positions.

“When you’re placed next to people who make you sharper in a hybrid role, faster raises and promotions tend to overtake remote premiums within a few years,” said Vone Perth, a member of CNBC’s Financial Advisor Council.

However, he says that ultimately he wants to prioritize “access to good talent.”

“Remote work with a great manager beats a mediocre office,” he says. “Hybrid jobs that are checked out aren’t worth commuting to.”

Bloom said that despite these drawbacks, some young people will still prefer or need fully remote working.

“Of course, if you have a disability or caregiving constraints, working remotely is likely better for your career than not working at all,” Bloom said.

To combat the potential penalties of remote work, executive coach Hellerer recommends that his clients practice “excessive brilliance.”

“This means a structured weekly summary of your wins and progress sent directly to your manager so your accomplishments can’t be ignored,” Hellerer said. “Create a template and run it weekly.”

Remote workers should also consider having short virtual coffee chats with leaders and colleagues to compensate for the lack of organic interaction within the office, he said. Hellerer also added that by scheduling monthly or quarterly trips to the physical office, you can get Facetime with your team, during which time you prioritize “close networking and social bonds.”

“The goal is not to choose between flexibility and development,” she said. “We’re thinking about achieving both.”