Picture this: a world where the word “commute” feels as dated as dial-up. When I started working that would have sounded absurd but it’s becoming more and more likely. Airbnb turned that vision into reality and they’ve become a shining example of how remote work can not only function but thrive. Surprisingly, this approach didn’t lead to chaos or decreased productivity. Instead, Airbnb saw its employee turnover drop to record lows, a shift few would have predicted.
So, what’s the magic behind Airbnb’s success, and how can organisations replicate it?
The Problem: High Turnover, Low Engagement
Before the pandemic, employee retention was already a thorn in the side of many businesses. The Great Resignation added fuel to the fire, with workers leaving in droves, often citing burnout, poor work-life balance, and inflexible policies. Studies suggest that replacing a salaried employee can cost, on average, between 6 to 9 months’ salary. Beyond the financials, it disrupts team dynamics, delays projects, and hampers morale.
Airbnb faced these same challenges. Yet, by 2023, they reported that turnover had dropped to its lowest levels, according to Fortune. What changed?
Free pizza on Friday? A pool table in the office? No. They embraced flexibility.
Airbnb’s Radical Approach
In April 2022, Airbnb introduced its “Live and Work Anywhere” policy. Employees could work remotely from anywhere in the world, with no changes to compensation. This wasn’t just lip service to flexibility – it was a fundamental shift. Within a year, 20% of their workforce had relocated or worked abroad. But more impressively, their retention figures soared. Airbnb tackled the root causes of dissatisfaction by giving employees what they truly wanted, autonomy and trust.
Airbnb’s approach to reducing turnover wasn’t just about flexibility; they also doubled down on fostering a culture of belonging. During the same period, the company prioritised diversity and inclusion initiatives, which they credited with improving retention. They implemented measures to attract and support underrepresented groups, including expanding employee resource groups and embedding inclusive practices into hiring and onboarding. These efforts not only made the workforce more diverse but also created an environment where employees felt valued and supported. By aligning their workplace culture with their public values, Airbnb reinforced employee loyalty and commitment.
Lessons We Can Learn
For organisations grappling with retention, Airbnb’s success offers valuable lessons:
1. Flexibility Isn’t a Perk
Employees now expect flexibility in where and when they work. This doesn’t mean you need to embrace a global work-from-anywhere policy tomorrow, but start by asking what could flexibility look like for our team and be willing to stretch outside your comfort zone.
2. Trust Builds Loyalty
Policies like Airbnb’s work because they’re rooted in trust. Micromanagement doesn’t belong in the future of work and is one of the largest reasons that employees leave a company. When people feel trusted, they’re more engaged and committed and more work gets done.
3. Keep Compensation Fair
Airbnb made a bold decision not to adjust salaries based on location. It’s a controversial move, but it signals that the company values the contributions of its employees equally, no matter where they work while keeping them competitive in the job market.
4. Cultivate Connection Remotely
Remote work doesn’t mean isolation. Airbnb focused on creating virtual spaces where employees could collaborate and maintain a sense of community. Regular team check-ins and virtual social events can make all the difference. Checkout my other article on this topic.
Building an Accessible Digital World
What’s most exciting about Airbnb’s success is how it highlights the potential for a more inclusive workplace. Flexibility opens doors for people who may have been excluded by traditional office culture, whether that’s parents juggling childcare, disabled employees facing accessibility barriers, or those living outside major cities.
Remote work isn’t a one-size-fits-all solution, but it’s a step toward a more equitable and accessible world of work. By learning from companies like Airbnb, we can reimagine how and where we work creating opportunities for more people to thrive.
If you’re reading this, consider what small changes your organisation could make to foster flexibility, trust, and inclusion. It’s good for retention, for cost saving, increased productivity, morale and talent attraction. Flexibility is good for the company and it’s good for you.