Kevin O’Leary, renowned investor and star of "Shark Tank," has challenged Tesla Inc. CEO Elon Musk‘s controversial assertion that working from home is “immoral.” O’Leary, who oversees a vast business empire consisting of 54 companies, has expressed his support for remote work and rejects any notion of immorality associated with it.
Musk, the influential figure behind Tesla and Twitter, recently launched a scathing critique of remote work, questioning its ethical implications. He argued that while some individuals enjoy the luxury of working from home, essential workers like delivery drivers and factory employees do not have the same privilege.
O’Leary countered Musk's notion that remote work is a moral issue. In an interview with CNBC, he bluntly stated, “No” when asked whether working from home is unethical. O’Leary’s stance on this matter aligns with the preferences of a significant portion of the American workforce. A recent study by McKinsey & Co. revealed that 87% of employees in the United States would opt for flexible work arrangements if given the opportunity.
The McKinsey study further emphasized the importance for employers to embrace technology, adopt policies and provide training to facilitate seamless integration of remote and on-site work. O’Leary shares this perspective, acknowledging the changing landscape of work and the need to embrace innovative practices.
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Speaking with CNN, O’Leary acknowledged the unique circumstances of Musk’s businesses, such as Tesla and SpaceX, which heavily rely on collaboration among engineers. He emphasized that this should not overshadow the success and viability of remote work in other sectors of the economy. Many industries have already embraced hybrid working models, and O’Leary argued that the pandemic has demonstrated the effectiveness of remote project management.
With his extensive business portfolio spanning various states and sectors, O’Leary revealed that 40% of his companies have permanently transitioned to remote work. He highlighted the financial benefits, noting that post-pandemic, these businesses are projected to generate a 20% increase in free cash flow. O’Leary sees this as evidence that remote work is not only effective but also cost-efficient, particularly in terms of reducing real estate expenses.
"Forty-four percent of our employees across our venture portfolio work remotely, and they ain’t coming into the office, period,” O'Leary said in a CNN interview in March.
For example, O’Leary has accumulated a nearly $50 million position in a startup called StartEngine. The platform allows anyone to invest in startups, including raising $15 million this year alone from retail investors. The startup has long touted the benefits of their work-from-home model. This allows them to recruit from anywhere in the world, save on costs and gives flexibility to workers looking for work-from-home positions.
But his support for remote work doesn’t mean he tolerates slacking off. With his strict standards, O’Leary emphasizes the importance of maintaining a strong work ethic, even when working remotely.
While this remote work arrangement may seem unconventional to some, O’Leary views it as a mutually beneficial trade-off. He states, “I call my employees 24/7. That’s the deal. If you don’t work in the office, I can call you at two in the morning if we have a crisis, and they’re gonna answer. That’s the way they’re used to it now.”
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In a 2019 interview with CNBC, before the pandemic reshaped work dynamics, O’Leary emphasized that he expects his team members to be responsive, even when they are on vacation. Given that his employees are dispersed across various locations, spanning the country and sometimes the globe, he recognizes the need for round-the-clock availability. The focus is on achieving results rather than adhering to a strict 9-to-5 schedule.
“Do I expect my employees to respond to me when they’re on vacation? 100%,” O’Leary asserted. He further emphasized that his employees are expected to fulfill their responsibilities, whether they work 24/7 or adopt alternative schedules, as long as the job gets done. This flexible approach aligns with the evolving nature of the economy, where rigid working hours are no longer the sole measure of productivity.
As O’Leary prepares for the 15th season of "Shark Tank," he anticipates a wave in entrepreneurs seeking investment opportunities. The economic terrain, shaped by changing dynamics and limited venture capital availability, has led to an unprecedented influx of applications. O’Leary maintains an optimistic outlook, expecting a surge in deal flow, and eagerly anticipates securing favorable terms.
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