Tesla struggles with Elon Musk’s strict return to office policy

Tesla Inc CEO Elon Musk attends the World Artificial Intelligence Conference (WAIC) in Shanghai, China August 29, 2019.

Aly Song | Reuters

Tesla CEO Elon Musk enacted a strict return-to-office policy this spring, informing workers abruptly by electronic mail on May 31 that they would wish to “spend a minimum of forty hours in the office per week.” Anything else, he instructed, was “phoning it in.”

Three months since this edict, Tesla nonetheless does not have the room or assets to deliver all its workers again to the office, in accordance to individuals who work for the corporate within the United States and inner paperwork seen by CNBC. The individuals declined to be named as a result of they weren’t approved to speak to the press on behalf of the corporate.

The return-to-office policy has additionally brought on a decline in morale, particularly amongst groups that allowed workers to work remotely as wanted earlier than Covid-19.

In normal, Tesla had been open to distant work amongst workers in office roles earlier than the pandemic. As the corporate’s workforce expanded in recent times, the main focus was on constructing out worldwide hubs and a brand new manufacturing facility in Texas. It didn’t construct sufficient new workspaces or purchase sufficient office tools at present services in Nevada and California to deliver all office workers and long-term contractors in forty hours per week.

According to a number of present individuals who work there, Tesla lately needed to deliver its workers within the San Francisco Bay Area to the office for 3 days per week, however a scarcity of chairs, desk house, parking spots and different assets proved an excessive amount of. (Some of this was beforehand reported by The Information.) Instead, Tesla set staggered in-office schedules again to two days per week.

Even easy provides like dongles and charging cords have been in brief provide. On days the place extra workers are scheduled to work on-site, crowded situations ship individuals to take telephone calls outside, as Tesla by no means constructed sufficient convention rooms and telephone cubicles to accommodate this many workers in attendance without delay.

A success to morale

The firm is now surveilling workers’ attendance, with Musk receiving detailed weekly stories on absenteeism.

In early September, inner data present, about one-eighth of workers have been out on a typical day in Fremont, California, the house of Tesla’s first U.S. car meeting plant. Across all of Tesla, that quantity was solely barely higher, with about one-tenth of workers absent on a typical workday.

The numbers have remained inside that vary since March 2022, pre-dating Musk’s orders, in accordance to inner stories considered by CNBC. Absenteeism spikes on weekends and round holidays, as one may anticipate.

Absenteeism at Tesla is measured utilizing information from staff badging into services, with unplanned absences divided by deliberate break day to tabulate each day totals, in accordance to inner data and folks acquainted with the stories despatched to Musk.

Not all workers are tracked the identical means. Direct stories to Elon Musk would not have their badge swipes counted for the inner stories, for instance.

The return-to-office policy — murky and casual as it’s — has brought on a big decline in morale amongst some workers, in accordance to inner messages seen by CNBC.

Before COVID-19 restrictions, Tesla managers typically discovered how a lot distant work was applicable for his or her groups. Musk’s hardline policy eradicated that freedom in principle, although some execs should give you the chance to carve out offers for “exceptional” workers.

In early June 2022, proper after Musk mandated 40 hours on website for all, Tesla made steep cuts to its headcount. Employees who have been beforehand designated as distant staff however who couldn’t relocate to be within the office 40 hours per week got till September 30 to transfer or take a severance bundle from Tesla.

About per week after making that supply internally, Tesla HR requested individuals who lived distant whether or not they deliberate to transfer and work in a Tesla office 40 hours per week. Some of those that stated they weren’t positive if they may relocate, or who stated they undoubtedly couldn’t transfer, have been dismissed in June with out warning, in accordance to inner correspondence learn by CNBC and two individuals straight acquainted with the terminations.

The policy has additionally depleted a few of Tesla’s energy to recruit and retain high expertise. At least just a few well-liked workers stop as a result of they needed extra versatile preparations, in accordance to inner correspondence and two resignations confirmed by CNBC.

Some staff who lived removed from a Tesla office at the moment are dwelling hours away from their households to meet the brand new necessities, one worker instructed CNBC.

This worker stated they fearful most of all about immigrant staff at Tesla, who might lose their visas if the corporate abruptly decides to terminate their roles over the shifting attendance mandate.

They additionally fearful about how Tesla’s closed-mindedness about distant work might hit the corporate’s range objectives.

In its 2022 range report, launched in July, Meta disclosed that: “US candidates who accepted remote job offers were substantially more likely to be Black, Hispanic, Native American, Alaskan Native, Pacific Islander, veterans and/or people with disabilities,” and “Globally, candidates who accepted remote job offers were more likely to be women.”

In Tesla’s most up-to-date 2021 Impact Report, which it printed in May 2022, the corporate boasted about the way it saved workers feeling linked whilst they labored from distant workplaces.

The report stated, “During the global pandemic, we focused a great deal on expanding our community engagement and ensuring our employees stayed connected. Specifically, we expanded our Employee Resource Groups (ERGs) and ensured our programming was accessible in a remote work environment…We ensured our employees felt more heard and connected than ever before as they pivoted to virtual events to promote inclusion across different locations, physical boundaries and time zones.”

The firm didn’t escape numbers for what number of workers it allowed to work from distant places earlier than and after the pandemic started, or how that impacted the demographic mixture of its workforce.

Tesla didn’t reply to a request for remark.


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