Please ensure Javascript is enabled for purposes of website accessibility

Va. broadband goal includes access for all by 2027-2028

A new five-year plan calls for connecting more than 162,000 Virginia businesses and homes that currently lack broadband access to high-speed internet by 2028.

On Friday, Gov. Glenn Youngkin released the plan, as well as volume 2 of the state’s initial proposal outlining its strategies under the federal Broadband Equity, Access and Deployment (BEAD) program. BEAD is a $42.4 billion national program to expand high-speed internet access by funding planning, infrastructure deployment and adoption plans under the federal Infrastructure Investments and Jobs Act.

Virginia’s allocation, which will be administered by the state Department of Housing and Community Development, includes $1.48 billion, of which $958.7 million will be spent to connect homes and businesses.

According to the plans, the state will use its BEAD money to work with local governments and internet service providers to “plan shovel-ready, universal broadband projects ready for funding,” as well as to remove barriers for special constructions costs for access to locations through line-extension programs by the end of 2024. The plan also includes goals of completing construction of BEAD-funded projects by 2027 to 2028, promoting the use of federal affordability programs by 5% to lower the cost of broadband services and conducting a needs assessment to develop programs to reach full adoption.

As of July, 384,475 households in Virginia were receiving $11.5 million in federal subsidies monthly toward the cost of broadband, but as many as 715,525 more households that could be eligible were not enrolled, and they’re missing out on more than $21 million per month.

“In today’s increasingly digital world, having access to high-speed broadband is no longer a luxury; it is necessary in order to fully participate in daily life,” Youngkin said in a statement. “I’m proud to share that the commonwealth is the first in the nation to release these plans and to strategize the effective utilization of these funds, ensuring that all Virginians are connected through broadband.”

The plans also say that extending broadband access will cost 50% more than anticipated as a result of inflation and because of federal requirements. The cost per location for the over 137,000 locations that could be served by multilocation deployments increased from $2,587 on average to $5,316; the cost for line extensions, which applies to about 15,000 locations, increased from about $6,142 to $9,113.

Since 2017, Virginia has allocated more than $935 million in state and federal funding to extend broadband infrastructure to more than 388,000 locations in 80 cities and counties, and those investments have brought in about $1.1 billion in matching funds from local governments and internet service providers.

DHCD is accepting public comment through Sept. 19 for volume 2 of its initial proposal.  For more information and to submit comments, visit: dhcd.virginia.gov/vati

In 2021, former Gov. Ralph Northam pledged to provide broadband access across Virginia by 2024, accelerating by fours years his original pledge to achieve universal broadband access by 2028 because of an infusion of federal COVID-19 relief funding that Virginia received in 2020 and 2021.

Leidos lands $7.9B Army contract

Reston-based Leidos has won a 10-year, $7.9 billion contract from the Army, the Pentagon announced Thursday.

Under the firm-fixed-price contract, Leidos will provide hardware systems, system management solutions, components, customizable sustainment strategies, non-personal service and continuous technology upgrades. Leidos was one of three bids received for the project.

Work locations will be determined with each order, and the estimated completion date is Aug. 30, 2033.

Leidos provides technology, engineering and science services to defense, intelligence, civil and health markets. The company employs 46,000 people and reported $14.4 billion in 2022 revenue. In May, Thomas Bell took over as the company’s CEO from Roger Krone, who led the company since 2014.

Va. Tech names chief of staff for university operations

Virginia Tech has named Brennan Shepard its chief of staff for university operations.

Shepard was most recently director of financial planning in the the university’s Office of Budget and Financial Planning and has served in various roles in the finance division over the past 15 years. He officially began his new role on Aug. 25 after serving in an interim capacity since April.

As chief of staff, Shepard will provide increased flexibility to the office of the executive vice president and chief operating officer by overseeing day-to-day administrative functions. He will lead critical projects across the university’s operations and advance the priorities and initiatives of the office and the division.

“I am thrilled that Brennan has agreed to stay in this role long term, having served in an interim capacity since April,” Amy Sebring, Virginia Tech’s executive vice president and chief operating officer, said in a statement. “Early in my tenure, I conducted a national search for the position and was unable to find someone who had the skills and demeanor that Brennan brings to the position. His ability to think strategically and work collaboratively comes, in part, from his understanding and experience at Virginia Tech. In addition, during his four months in the interim role, he has demonstrated a keen ability to look for effective solutions that serve the needs of our staff, faculty and students.”

Shepard has an MBA in organizational leadership from Virginia Tech’s Pamplin College of Business and also earned his bachelor’s degree in political science from the university. While earning his MBA, Shepard was named the graduate student representative to the university’s board of visitors for the 2007 to 2008 academic year and served as a graduate assistant in its internal audit department. He has prior experience in business management and as a legislative assistant in the Virginia General Assembly, where he supported a member of the House of Delegates during the 2002 and 2003 sessions.

“I’m fortunate to have learned from many talented leaders and colleagues over the years at Virginia Tech and am humbled by Amy’s confidence in me to serve the university in this new role,” Shepard said in a statement. “I look forward to supporting the incredible University Operations team and continuing to contribute to this university that has given me so much.”

Virginia ABC: Vodka is Va.’s best-selling spirit

Tito’s Handmade Vodka notched its sixth year as the commonwealth’s most popular liquor at Virginia Alcoholic Beverage Control Authority stores in fiscal 2023.

According to VABC, the Austin, Texas-based craft vodka accounted for $72 million in sales in fiscal 2023, up $5.1 million over the prior year. Tito’s out-guzzled other spirits by a long shot; Hennessy VS cognac ranked No. 2 in sales at $44 million, Jack Daniel’s Old No. 7 whiskey chased behind, ranking No. 3 at $30.1 million, followed by Patron Silver tequila, at $28.6 million, and Jim Beam straight bourbon whiskey, which accounted for $24 million in sales.

Among the top 10 best-sellers, Jameson Irish whiskey rose to No. 6 and Maker’s Mark straight bourbon remained at No. 7. Crown Royal Canadian whiskey dropped to No. 8, Grey Goose vodka rose to No. 9 and Lunazul Blanco tequila joined the top 10, rising 10 spots to No. 10. Fireball whiskey fizzled, dropping to No. 14. The spirit, which has been among the state’s top 50 products, saw the year’s largest decline at 18.4%, with total sales dropping by $3.2 million.

The best-sellers list, released Tuesday, follows a report of record revenues for ABC in fiscal 2023. The authority topped off at $1.47 billion in gross revenues last year, up $54.3 million over the previous fiscal year.

Among Virginia’s top-selling categories for fiscal 2023, vodka led at 1.64 million cases sold, followed by tequila at 885,876 cases, an 18.4% increase from the previous year. Tequila, which grew from an 11.8% to 13.7% market share, shot past straight bourbon whiskey, which accounted for 780,777 cases in fiscal 2023, followed by cordials/liqueurs at 514,517 cases and rum at 470,292 cases.

The fastest-growing categories were moonshine at 25.6%, tequila at 18.4%, specialty drinks (such as gift sets) at 14.8%, domestic ready-to-drink cocktails at 10.1% and straight rye whiskey at 9.8%. The biggest declines were seen in Cognacs/Armagnacs at 14.6%, and Canadian whiskey at 10%. Sloe gin grew 64% but is Virginia ABC’s smallest category, with only 141 cases sold.

Sales of Virginia-distilled spirits increased to $24.1 million in sales, with more than 1 million bottles sold. Top sellers in that category included Bowman Brothers Virginia straight bourbon, at $1.6 million, Cirrus Vodka at $1.2 million, John J. Bowman Virginia straight bourbon, with $841,852 in sales, Isaac Bowman port finish whiskey at $623,848 and Virginia Highlands War Horn Whiskey, which accounted for $446,898.

Virginia ABC added four stores in fiscal 2023, bringing its total to 399.

Here are the top five stores by gallons sold:

  1. Store No. 256, in Virginia Beach, 113,346 gallons
  2. Store No. 219, in Fairfax County, 103,139 gallons
  3. Store No. 278, in Virginia Beach, 97,326 gallons
  4. Store No. 225 in Virginia Beach, 94,302 gallons
  5. Store 280, Chesapeake, at 92,432 gallons.

Deltek names new CFO

Deltek has named Dean Tilsley its chief financial officer, the Herndon-based software company announced Thursday.

Tilsley most recently served as CFO for Renaissance Learning, a Wisconsin-based educational software-as-a-service and learning analytics company. In his new role, Tilsley will support growth across Deltek’s portfolio of solutions and help drive financial strategy and operational efficiency.

Deltek has a hybrid workforce, and Tilsley will work from the company’s Herndon headquarters as well as from his home office in New York.

“Dean is a very collaborative and results-focused leader,” Deltek President and CEO Mike Corkery said in a statement. “I am confident he will contribute to our culture and results by driving continuous improvements to help us meet our future strategic, financial and operational goals. His proven success delivering new business initiatives and leading the integration of large global acquisitions make him a great asset to our team.”

In addition to his previous roles, Tilsley has served as CFO for the software and media solutions group of New York-based Cox Automotive as well as senior vice president and global head of corporate operations for Nasdaq. He also served as CFO for Reuters’ media group, as well as head of financial planning and analysis for Associated Press Television in London. He earned his MBA from Imperial College London and has a bachelor’s degree in economics from the University of Otago in his native New Zealand.

“I’m very excited to join Deltek to continue building on the incredible work they’ve done over the years,” Tilsley said in a statement. “I’m looking forward to working with the incredibly talented Deltek team to drive our business operations and strategy forward and support growth, while continuing to deliver best-in-class service to our customers around the world.”

Talking telework

SHAWN AVERY

President and CEO, Hampton Roads Workforce Council, Norfolk

Prior to the pandemic, did Hampton Roads Workforce Council allow hybrid or remote work? 

We allowed employees to occasionally work remotely [due to] extenuating circumstances, such as car trouble, sick family members, etc. 

What is your policy today, and how is it working? 

Last year, we implemented a 4 ½-day workweek, plus a two-hour-a-week flex-time policy — closing all offices a half day on Friday. [We are] currently evaluating whether additional adjustments are possible. 

What challenges do you foresee with remote/hybrid work among your staff? 

Some of our positions are based in career centers where they work directly with job seekers. The Workforce Council also has robust, mobile outreach programming where team members work from a variety of places, including libraries and coffee shops. Lastly, the council has multiple administrative teams that work predominantly in nondirect roles. This complexity requires a flexible approach to remote/hybrid scheduling to ensure that the needs of both the community and our employees [can] be met.

What trends are you seeing among partner businesses? 

Industries that are more focused on the traditional trades like shipbuilding and ship repair, manufacturing, construction, health care and the hospitality industry cannot typically accommodate a remote workforce. Consequently, those employers have had to increase wage rates to maintain and attract workers. … Ultimately, all industries have had to become more creative in how they onboard and communicate with new employees to remain competitive in their respective fields. From what we are seeing locally, as well as nationally, hybrid scheduling seems to be the new standard. 

AMY BRODERICK

Photo courtesy Amy Broderick
Photo courtesy Amy Broderick

Senior vice president, Cushman & Wakefield | Thalhimer, Glen Allen

What trends have you seen in commercial real estate due to remote and hybrid work? 

Many companies are able to downsize their office footprint due to remote work, but because their business is still thriving, they don’t necessarily have to cut costs. In these scenarios, they are relocating to higher-quality, more desirable properties. 

How has hybrid or remote work changed your day-to-day worklife? 

If at all possible, I like to arrange property showings for Tuesday through Thursday. Office buildings tend to be more active and, as a result, more welcoming during the middle of the week. … I’m thinking about how we can improve these properties … to make a return to office more attractive for current tenants, prospective tenants and their employees. … Our office stock in Richmond is dated, and between the costs of construction and the limited rent growth here, a plethora of new construction is not on the horizon. … ‘Spec suites’ are a part of the conversation with many landlords. These are office suites that are move-in ready, with fresh paint and new flooring, and they are sometimes furnished. … In Richmond, a lot of property owners are hesitant [to make improvements] due to the cost. For tenants, many have shortened their timeline to occupancy and so waiting months for permitting and build-out isn’t feasible. … Landlords also need to consider that they may be competing for tenants with a sublease. 

Is an office real estate “apocalypse” ahead, as some experts have warned? 

I don’t foresee an apocalypse — at least not in Richmond. … There is still more vacancy to come. There are still companies expanding as well, so it will just take some time for the office needs of the community as a whole to balance out. 

KATE ELLIS

General manager, Hotel Indigo Old Town Alexandria; Chairperson, Visit Alexandria Board of GovernorsAlexandria

Photo courtesy Kate Ellis
Photo courtesy Kate Ellis

How do area hoteliers view the shift to more hybrid and remote work? 

Our key is to focus on what is, not what was, and what we see is that hybrid and remote is driving the need for business, government and association managers to meet in small groups to strategize. … So, as Alexandria hoteliers, we’re all focused on how we can share this beautiful small city and make our spaces and amenities fun and exceptional. We want people to come here, collaborate on their best work and then go home and tell their friends how great it was. They’re our secret sales force.

What challenges do hybrid and remote work create for the hospitality industry? 

Our biggest challenge has most likely been the compression of the planning window. We get calls from meeting planners sometimes with just a week’s notice. And because workers are now meeting less frequently in person in an office, they need to do more high-value work in our hotels. 

How has hybrid work shifted the type of traveler you see, as well as their meeting needs? 

We’re seeing more local and regional guests. That’s a function both of hybrid work and a desire to meet in locations that are easy to get to. In terms of the experience, again, it’s as much about what happens outside the meeting room as in. Everyone already has state-of-the-art hybrid meeting space in their office, but what sets an organization apart is a meeting that reflects the personality of your organization, that everyone remembers and authentically connects you to the place in which you meet. 

SUZANNE GARDNER

Photo courtesy Suzanne Gardner
Photo courtesy Suzanne Gardner

Sales operations manager, Kopis, Blacksburg

How did you become a fully remote worker? 

My personal life brought me to the [New River Valley] this summer, which led to a conversation about full-time remote work with [Greenville, South Carolina-based tech company] Kopis. They were incredibly accepting of the idea and were willing to provide anything I needed to get settled and be successful remotely. 

What are the positives in working remotely? 

I save money by not commuting or eating out for lunch. I don’t feel inclined to work late at the office, and I’m able to manage household chores throughout the day without sacrificing time in the evenings. I also have an incredibly clingy golden retriever who is a fan of midday walks on the Huckleberry Trail. 

What are the challenges? 

When I have been in the office, organic conversations with colleagues have always been a good way to build trust and rapport. Being remote, I have to make a conscious effort to ensure that I am touching base with my team throughout the day.

How have you connected with the broader community to find connections? 

Even before I relocated to Virginia, I was searching online to see where I could get plugged in to meet people and get involved once I got here. … I reached out to several people through the Get2KnowNoke partnership in Roanoke and set up coffee meetings with them to connect and learn more about Roanoke. I got involved with Blacksburg Young Professionals and signed up for happy hours. Lastly, I was able to find the Roanoke-Blacksburg Technical Council and joined their Women in Technology group and signed up for their luncheons and networking events. … People want to see you succeed, especially when they know you are new, have a skillset and want to get plugged in. 

REBECCA GELLER

President and CEO, The Geller Law GroupFairfax County

Photo courtesy Rebecca Geller
Photo courtesy Rebecca Geller

Why did you establish your law firm as a remote workplace?

While working as an attorney in a large law firm, I saw brilliant women fleeing the profession because firm partners showed utter disregard for attorneys’ lives outside the firm. … As the mom of a baby and a toddler in 2011, I knew there had to be a better way to run a law firm that enabled women to be moms and successful lawyers, but I didn’t see an alternative model in existence, so I created one. … The Geller Law Group has grown to 33 women with 37 children among us, and the average age is 6 years old. Our kids get to grow up seeing their parents do work they care about while also being actively involved parents. 

Prior to the pandemic, what were the biggest obstacles with remote work that your firm faced? 

We have learned over the years that not everyone is successful in a remote work environment. Some people lack the technical skills, while others are better suited for an in-person team environment. … If someone is not suited for our workstyle, we both typically figure it out quickly. 

The firm has offices in Fairfax and Washington, D.C. Why did you establish those offices, and how do your employees use them? 

We … have office space for in-person meetings with clients, partners or other firm attorneys and team meetings/events. We also utilize the offices for notary services and document signings with our clients. Our administrative team regularly works in the office to handle tasks requiring a lot of paperwork and filings.

MICHELE LEWANE

Photo courtesy Michele Lewane
Photo courtesy Michele Lewane

CEO, founder and lead attorney, Injured Workers Law Firm, Henrico County

When did your firm go back to the office 100%?

June 2020. … We had some staff alternate days [that] they came in so it wasn’t all at once. … By September 2020, everyone was back in office.

What prompted the firm to go back to the office full time? 

Basically, many of us were longing for collaboration so we started going back to the office. We wore masks and were socially distanced. About a third of the positions needed to be in the office since the jobs required organizing and scanning medical documents. One individual had health issues and decided to continue to work from home for over a year.

Did the firm previously allow hybrid or remote work outside of COVID-related closures? 

We have one remote worker who lives in Ohio. She has worked remotely for 12 years. She was an awesome employee and when her family moved back to her hometown in Ohio, we couldn’t [bear] to see her leave, so we created a remote position for her that worked and continues to work wonderfully. 

How has being back in the office affected the firm? 

We now see clients in the office, which is very different since we had been doing hearings and mediations and deposition via Webex or Zoom. … There has [been] a very slight issue with recruitment if individuals solely want to work from home, but we haven’t seen it much. Most of our clients prefer the convenience of not traveling to the office so they do not mind phone/Zoom appointments throughout their case. 

RELATED STORIES: 

Here to stay

Rachel Miller spent half of her undergraduate studies and then a portion of graduate school learning remotely behind a computer screen. Even the first job she took that aligned with her career goals — completing contact tracing during the COVID-19 pandemic while she worked toward her master’s degree in public health — was a remote job, performed while she was sheltering at home with her three roommates. 

By the time she was set to graduate from her master’s degree program at the University of North Carolina in May 2022, Miller, who had taken some online courses even before the pandemic, was already accustomed to the autonomy and flexibility that remote work provides, but she also wanted a workplace where she could collaborate with and learn from her colleagues. 

“Hybrid was definitely my ideal scenario,” says Miller, who has been working a hybrid schedule for a little more than a year in her job as a health policy and payment specialist for the Alexandria-based American Physical Therapy Association, which represents 100,000 physical therapy professionals and students nationwide.

American Physical Therapy Association CEO Justin Moore says flexible work fits in with the organization’s overall mission of wellness. Photo by Will Schermerhorn
American Physical Therapy Association CEO Justin Moore says flexible work fits in with the organization’s overall mission of wellness. Photo by Will Schermerhorn

She works 22 hours a week in the office on Tuesdays, Thursdays and Fridays. On Mondays and Wednesdays, Miller might log the rest of her hours — APTA has a 37.5-hour work week — from a coffee shop in the morning and then come home and prep dinner during her lunch hour. “It’s nice that we do have that flexibility,” she says.

It has been more than three years since the pandemic upended the workplace. While remote work may once have felt like a novel experiment, it is now a routine way of life for many white-collar workers. But since early 2022, the model has been shifting toward hybrid work.

Among workers whose jobs can be performed remotely, about 41% are working a hybrid schedule, up from 35% in January 2022, according to a Pew Research Center survey released in March. Meanwhile, the share of fully remote workers shrank from 43% to 35% during the same period.

Many offices reopened long ago, but with some employees already adjusted to a newfound work-life balance and employers confronted by a tight labor force, hybrid work has become less of a compromise and more of a minimum expectation. And experts and employers expect hybrid is here to stay. 

“The norms have been dramatically altered because of remote work and the mass migration to remote work,” says Timothy Golden, a professor who studies remote work at New York’s Rensselaer Polytechnic Institute. “People — employers and employees alike — have been thinking differently about remote work and how work can best be carried out. Certainly, one of the big changes that has occurred as a result of many people working remotely is that now that is an acceptable way of working.”

From novel to normal

Remote and hybrid work models aren’t new. Decades ago, the federal government recognized telework as a powerful recruitment and retention tool and enacted legislation around it.

In 2019, only 24% of U.S. workers spent time working at home, according to the U.S. Bureau of Labor Statistics, while the share of employees who worked regularly from home in 2022 was 34%, down from 38% in 2021. According to Pew, only 7% of U.S. workers were fully remote before the pandemic.

A majority of U.S. executives surveyed in the most recent Survey of Business Uncertainty, conducted in July, said they expect their number of hybrid and remote workers to grow by 2.2% and 1% respectively during the next five years, according to the survey conducted by the Federal Reserve Bank of Atlanta, the University of Chicago and Stanford University.

But even before the pandemic expedited a mass experiment in remote work, some Virginia-based employers were already considering or piloting hybrid work arrangements.

Rachel Miller’s boss, APTA CEO Justin Moore, says workplace flexibility fits in with his association’s overall mission of wellness and helps with recruitment. 

But prior to the pandemic, most employees worked on-site, and APTA’s few remote and flex work options were at the “margins of our strategy,” he says. The organization also wasn’t technologically equipped for remote work, but that changed in 2021 after APTA opened its new headquarters across from the new Potomac Yard Metro station. Planned before the pandemic, the headquarters includes technology to support remote work. 

APTA implemented its 22-hour weekly in-office hybrid policy, which represents a 60/40 office/remote split, at the beginning of 2022. Employees commit to their in-office hours at the beginning of the year, and most choose to work on-site three days a week.

“It has created a little bit of spirit in the office that Thursdays is sort of a high-impact day of collaborative meetings, of energy in the building,” he says.

APTA also offers employees a week of “work from anywhere” time, a benefit that Moore says has been more popular with employees than any other perk.

Instituting a hybrid work policy has been ‘an evolution,’ says Clare Miller, chief human resources officer for Richmond-based Atlantic Union Bank. Photo by Matthew R.O. Brown
Instituting a hybrid work policy has been ‘an evolution,’ says Clare Miller, chief human resources officer for Richmond-based Atlantic Union Bank. Photo by Matthew R.O. Brown

Atlantic Union Bank added a similar perk for its hybrid workers, who total more than 1,000 employees out of a workforce of a little more than 1,800 people. (About 250 of Atlantic Union’s workers, or nearly 14%, are fully remote, mostly working in customer care, IT or risk and compliance roles.) The Richmond-based bank, which in July announced plans to acquire Danville-based American National Bank, now provides its employees 12 remote flex days a year. 

“If they wanted to work a month from the beach in December or work remotely for a month at the end of the year, if they bank those things, they’ve got flexibility to do just that,” says the bank’s chief human resources officer, Clare Miller.

Atlantic Union added the flex days in June when it also instituted an updated hybrid work policy that generally calls for working in the office Tuesdays, Wednesdays and Thursdays, though some teams can modify that policy based on their needs.

‘An evolution’

Newer technologies that make it possible to work remotely have emerged alongside conversations about corporate social responsibility and spiking employee power. 

“If you’re going to have a hybrid environment, you better make sure that people need to be there doing the things you could only do in person,” says Eli Jamison, an assistant professor at Virginia Tech University’s Pamplin College of Business.

But as workers log in from home offices, coffee shops or even the beach, remote work has begun meeting with increased C-suite resistance — and from some surprising quarters. Some of the nation’s biggest tech companies, including Amazon.com, Facebook parent company Meta, X (formerly Twitter) and Zoom — arguably the world’s largest enabler of remote work — have demanded workers return to the office in some fashion, citing problems with teambuilding, productivity or even fairness among those whose jobs demand them to show up in person. 

Even Gov. Glenn Youngkin has weighed in; the Republican governor’s administration ordered state employees back to the office by July 5, 2022, which led to at least 300 resignations, according to a report from WRIC-TV, the ABC affiliate in Richmond. Most state employees are allowed one weekly telecommuting day, unless they receive special dispensation.

Amazon, which is building its East Coast HQ2 headquarters in Arlington County, where it plans to employ 25,000 people, mandated that corporate employees return to the office at least three days per week starting in May, leading to walkouts. More recently, a leaked message, obtained by Business Insider, showed the e-tailer would force ‘voluntary resignations’ among employees who refused to relocate around team hubs. Amazon has said it plans to have about 8,000 employees working hybrid schedules out of HQ2’s Metropolitan Park buildings by early October.

This has all been followed by news that the Biden administration will push to “aggressively execute” plans for more federal in-office work as early as September, Axios reported in early August. While the administration says it doesn’t plan to eliminate all remote work, the move comes on the heels of a July Government Accountability Office review that found that 17 out of 24 federal agencies were using 25% or less of their headquarters space in early 2023.

Some 1.5 million U.S. employees encountered new workplace attendance policies as of July, with another 1 million workers facing such mandates through the end of the year, according to research from Chicago-based real estate company JLL.

Falls Church-based Kastle Systems, which tracks entry data for 2,600 office buildings across 47 states, has estimated employee attendance hovering around an average 50% in major metropolitan markets this year. And JLL, which has noted that year-over-year worker attendance has increased by about 9% in 2023, has predicted that worker attendance could increase to more than 80% for the most popular midweek workdays by the end of this year.

While that may sound like good news to those in commercial real estate, return-to-office mandates also create opportunities for other companies to pick up talent, says Rensselaer’s Golden.

According to a job growth report issued in July from Scoop Technologies and People Data Labs, companies with workforces that are fully remote or structured hybrid (meaning the employer has set parameters around in-office time), added jobs at twice the pace of companies that are full time in-office from March to May. 

Instituting hybrid policies has been “an evolution,” says Miller at Atlantic Union, which updated its policy this year to standardize three days in the office as opposed to suggesting two to three. It is a message to employees that in-office collaboration, opportunities for formal and informal development and participating in company culture remain important and are in the best interest of teams, Miller says. While some managers were nervous that the shift would cause employees to leave, Miller says those numbers have been “immaterial,” resulting in 1% or 2% turnover.

“We wanted … in-office vibrancy,” Miller says. “We wanted them to really see and feel the tangible benefits that can be gleaned when we have critical mass.” 

Since June, teams have been eating lunches together, having one-on-one meetings and getting together to brainstorm in cross-functional groups, she says. Those interactions have been further helped by consolidating bank offices. “We recently moved staff in Richmond corporate offices to be more closely aligned by business unit, further deepening collaboration,” explains Miller. 

Roanoke-based Woods Rogers Vandeventer Black implemented a hybrid work policy that “strongly encourages” employees to work from the office three day a week, says the law firm’s president, Dan Summerlin. Photo by Don Petersen
Roanoke-based Woods Rogers Vandeventer Black implemented a hybrid work policy that “strongly encourages” employees to work from the office three day a week, says the law firm’s president, Dan Summerlin. Photo by Don Petersen

Roanoke-based law firm Woods Rogers Vandeventer Black implemented its new hybrid work policy, effective Sept. 5. While the firm didn’t previously have a policy, other than to encourage employees to work in-office “more frequently than not,” it now “strongly encourages” employees work in the office three days a week but does not specify particular days, says firm President Dan Summerlin. 

About 25% to a third of the firm’s 135 lawyers already work from the office full time, Summerlin says, with about 15% to 20% working mostly remote. That leaves about half of the firm’s lawyers working in hybrid mode, Summerlin says. “We understand that’s likely the way the world is going to be going forward,” he adds.

While WRVB won’t take attendance, attorneys who work remotely may have their offices turned into shared spaces, and the firm may consider different office reconfigurations as its leases are renewed, Summerlin says. The firm has seven or eight new associates starting, which was the impetus for the policy.

“We’re just going to be a little more smart about our space because having hallways with empty offices is not a great boost for morale for the staff or to the young lawyer coming in,” Summerlin says. “We sort of wanted to reiterate to everybody [that] we think we’re better and our firm culture gets passed on more easily if people are working together … in the office, as opposed to working from home.”

At APTA, a desire to be fair to workers represented by the association who are “back in the hospitals and back in the clinics treating patients” drove the decision to work a hybrid schedule, Moore says. “We wanted to be respectful of our providers that were seeing patients.” 

Productivity problems?

One looming question in the debate over where employees work is how much work they’re getting done, and findings seem contradictory on this point. 

Some studies have indicated hybrid and remote employees may work longer hours, in part because they are commuting less. For instance, a 2021 Microsoft study of 61,000 remote workers found their work hours increased 10%, though it also found a decrease in cross-company communication and collaboration between different business units. Additionally, a January University of Chicago study reported that teleworking saves workers an average 72 minutes of commuting per day, with about 40% of that time savings devoted to additional work.

A July report from Stanford University, however, found that fully remote employees are 10% to 20% less productive than their in-person peers. Hybrid work appeared to have no impact on productivity. The authors noted that hybrid work models have become popular among employers as a recruitment and retention tool and predict working from home will continue to grow as technologies improve.

In March, Nick Bloom, a Stanford professor and one of three authors of the university’s evolution of work study, tweeted that he expects that, in the long run, workforces will settle out with hybrid representing 50% of all jobs, fully in-person jobs 40% and fully remote jobs accounting for about 10%.

Rachel Miller spent the first 90 days of her job working in APTA’s office as part of the organization’s policy to aid with onboarding. Being in the office gives her the chance to informally engage with co-workers who may have expertise in areas she doesn’t. On days when she’s working remotely, Miller says, she may save questions for her supervisor.

Rachel Miller (center) talks with co-workers Amelia Sullivan and Paxton Styles at the American Physical Therapy Association’s Potomac Yard headquarters. Miller works 22 hours a week in the office on Tuesdays, Thursdays and Fridays. Photo by Will Schermerhorn
Rachel Miller (center) talks with co-workers Amelia Sullivan and Paxton Styles at the American Physical Therapy Association’s Potomac Yard headquarters. Miller works 22 hours a week in the office on Tuesdays, Thursdays and Fridays. Photo by Will Schermerhorn

“It’s much more fun for me to drop in the office and just ask a few questions than it is to explain something over [Microsoft] Teams or have a call on a day when we’re at home,” she says.

Moore, APTA’s CEO, estimates the association’s productivity is about 90% to 95% of what it had been when employees were on-site. And that’s a figure he’s willing to accept.

“We might get 95[%] productivity if we look at it on a week basis, but my guess is … because they have that choice and job satisfaction, that we gain [from] it in the long term,” he says.

Some companies, meanwhile, have found that offering fully remote work has given them a competitive edge in hiring without sacrificing productivity.

That remains the case for Atlantic Union, Miller says, though the bank is being more selective in its remote hiring as it has found competition for talent has diminished compared with 2021, which she says was the peak of the “war for talent.”

Before the pandemic, Richmond-based marketing firm Workshop Digital worked fully in-office out of a 10,000-square-foot space in the city’s Scott’s Addition neighborhood. With the help of a real estate firm, the company later found a tenant for the space after it sat empty for about a year. Now, about two-thirds of its 35 employees are local, and while Workshop Digital doesn’t have a hybrid policy, those who are in the area average one or two days in its co-working space weekly, says Brian Forrester, the company’s co-founder and CEO. 

Workshop Digital leaders discussed adding remote workers before the pandemic, Forrester says, but worried it might stifle innovation and productivity. That hasn’t been the case. Now, the company employs remote workers from 10 states and is seeking a new, smaller office. Offering remote work has been a “major perk” in casting a wider net for talent, he adds.

“We’ve been able to hire sort of nationally the best talent available versus only those that would either relocate to Richmond, or, you know, those that were already local to Richmond.”

RELATED STORIES: 

Albemarle seeks to expand region’s defense sector

It’s no secret: Albemarle County is banking on the $58 million purchase of 462 acres around a military spy outpost to anchor the region’s defense community.

On May 24, the county Board of Supervisors approved a contract to acquire the undeveloped and former farmland tract along along Route 29 adjacent to Rivanna Station — a sub-installation of Fort Belvoir in Fairfax County — where three of the top military intelligence agencies, the Defense Intelligence Agency, the National Ground Intelligence Center and the Geospatial-Intelligence Agency, have a presence. The contract is currently in due diligence.  

The project, Rivanna Station Futures, would give the 75-acre Rivanna Station room to grow while buffering it from encroachment, including from “bad actors,” like a hostile foreign power that could impact the base’s mission, says Deputy County Executive Trevor Henry. Board Chair Donna Price has said the deal “may be the most significant economic development opportunity ever in Albemarle County.” Part of the county’s plans also call for establishing an Intelligence Community Innovation Acceleration Campus (ICIAC), where defense contractors, academia and the Defense Department could cooperate on solutions to national security problems. 

According to an economic impact projection, developing the ICIAC could add 873 jobs and generate more than $975,000 in local tax revenue and $2.2 million in state tax revenues. Albemarle’s work on the project, part of a county strategic plan set in 2017, dovetails with a report released in April by the University of Virginia and the Charlottesville Regional Chamber of Commerce that shows the defense industry had a $1.2 billion regional economic impact in 2021, making it the region’s second largest industry, behind higher education. 

“We believe that this will give assurances to our defense partners that Albemarle County is a preferred partner, and we’re in it for the long haul to support their work,” Henry says.

Any build-out on the project is likely a few years away. And while the county’s final decision on the purchase of the land could come by the end of the year, Henry says, it would still require rezoning.

George Foresman, executive director and senior adviser at U.Va’s National Security Policy Center, says the project complements a focus on national security along U.S. Route 29, which includes U.Va.’s North Fork research park, and in Greene County, where a defense production zoning overlay provides incentives to defense contractors.

“It’s a recipe made in heaven,” he says.

Richmond airport sets new travel record

Just two months after shattering its monthly passenger record, Richmond International Airport has done it again.

The Capital Region Airport Commission on Wednesday announced that the airport counted 439,951 passengers for July, soaring past a record set in May when the airport counted 431,416 passengers.

By comparison, the airport counted 386,931 passengers in July 2019. A year later, as travel plunged during the COVID-19 pandemic, that number dropped to 117,673, according to airport data.

“While we’re certainly pleased with the July results, we’re not surprised,” Capital Region Airport Commission President and CEO Perry J. Miller said in a statement. “The Richmond region has seen tremendous growth with in-migration, several significant economic development announcements and an array of attractive new route offerings and enhancements by airlines operating from RIC.”

According to the the airport commission, three airlines — Breeze Airways, Delta Air Lines and Spirit Airlines — saw year-over-year traffic increases exceeding 25%. For the calendar year to date, passenger traffic has increased 19.2% over 2022. In addition, Breeze will also begin to offer new winter flights from Richmond to Fort Myers, Florida, beginning Nov. 15. The flights will operate twice a week and reconnect Richmond to Fort Meyers for the first time since 2005.

According to the U.S. Bureau of Transportation Statistics, U.S airlines carried 71.4 million domestic passengers and 10.4 million international passengers on U.S. flights in May, an all-time high when not adjusting for seasonality, which takes into account number of weekend days, the timing of holidays and seasonal activity.

Polish glass fabricator expanding in Henry County

Poland-based Press Glass Inc. will spend more than $155 million to expand its operations in Henry County and add 335 jobs, marking the largest expansion in the county’s history, Gov. Glenn Youngkin announced Wednesday.

The largest independent glass fabricator in Europe, according to a news release, Press Glass will construct a 360,000-square-foot addition at its existing facility in the Commonwealth Crossing Business Centre in Ridgeway, where it manufactures glass for the commercial construction industry. The company currently employs more than 300 workers at the site, which it opened in 2020.

“With this expansion, Press Glass will make the largest single capital investment by a business in Henry County’s history,” Youngkin said in a statement. “The addition of 335 new jobs, more than doubling the company’s head count, helps this region continue its economic rebound and demonstrates the resurgence of manufacturing that is happening across the commonwealth.”

Press Glass was founded in 1991 and has 15 factories in Europe and the United States. The company processes glass for fabricators of windows and doors, facades and interior glass constructions.

“Our clients have trusted us and recognized the high quality of Press Glass products, so the expansion of the factory in Ridgeway is a natural step to increase the availability of our offerings and strengthen our position in the American market,” Press Glass President Maciej Migalski said in a statement. “After the expansion, the Ridgeway plant will be one of the largest and most automated facilities processing architectural glass in the USA. At the same time, we will create new, valuable job opportunities. We express our gratitude to the local leadership for their invaluable support.”

In January, Youngkin announced Commonwealth Crossing would receive about $22 million from the Virginia Business Ready Sites Program in an effort to grow the state’s inventory of project-ready industrial sites larger than 100 acres.

The Virginia Economic Development Partnership worked with the Martinsville-Henry County Economic Development Corp. to secure the project for Virginia, and Youngkin approved a $2 million grant from the Commonwealth’s Opportunity Fund to assist Henry County with the project. Funding and services to support the company’s employee training activities will be provided through VEDP’s Virginia Jobs Investment Program.