As numerous companies require employees to return to the office full-time, Zillow has adopted a different approach, allowing its employees to decide where they prefer to work. During the outset of the COVID-19 pandemic, Zillow, like many other organizations, had its employees working from home. In fall 2020, Zillow’s leadership informed employees that they would not be required to return to the office full-time, which led to many employees relocating. Subsequently, Zillow developed a "CloudHQ" model, recognizing its headquarters as a virtual space rather than a singular physical location.
Currently, approximately 84% of Zillow’s 6,900 employees work fully remotely, without any obligation to regularly attend an office. The remaining portion consists of roles in sectors like mortgage, which are heavily office-based due to compliance regulations, and regional sales roles requiring presence at specific field offices.
Dan Spaulding, Zillow’s Chief People Officer, discussed the company’s asynchronous work approach with Fortune, outlining the concept of "Z-retreats" and mentioning his limited visits to the office.
The Fortune interview further revealed that the CloudHQ model was conceptualized in fall 2020 amidst the uncertainty of the pandemic’s impact on work environments. This model emphasizes employee choice in determining work and living locations based on personal effectiveness, paired with deliberate in-person gatherings.
Zillow’s approach to office usage has evolved, reducing its office count from 11 to six locations across major hubs such as Seattle, San Francisco, Irvine, and New York. Although not mandated, offices are utilized by employees who prefer frequent attendance. Moreover, "Z-retreats" serve as centrally organized and strategic in-person meetings aimed at fostering team collaboration, leadership interactions, and focused work on product launches.
Since implementing its remote and hybrid work strategies, Zillow has experienced nine successive quarters of outperforming in residential real estate, an increase in product shipping speed, reduced voluntary attrition, and improved employee sentiment. This strategy has enhanced talent recruitment, with the company witnessing a quadruple increase in job applicants per opening compared to pre-CloudHQ times.
In terms of workplace inclusivity, 94% of Zillow employees express pride in their company, while 84% feel equipped to perform their jobs effectively. A notable demographic transition has occurred, with women now comprising 46% of the workforce, up from 41% pre-pandemic, reflecting a successful strategy in attracting and retaining diverse talent.
Regarding office attendance, Spaulding personally visits the office about four to five days monthly, not consecutively. He emphasizes understanding present-day workforce challenges rather than reverting to pre-pandemic norms. Zillow’s focus on providing flexibility and fostering intentional work strategies aims to inspire employees to embrace their roles wholeheartedly, understanding the mutual benefits of workplace adaptability.
Addressing concerns about return-to-office (RTO) measures being more about control than productivity, Spaulding underscores the importance of treating employees as responsible adults, granting them flexibility to balance personal and professional commitments, which in turn garners increased employee dedication when needed.
This narrative initially appeared on Fortune.com.
