Zillow's Top HR Leader: Remote-First Approach Accelerates Recruiting—Here Are 2 Reasons We're Keeping Our Offices Open

With many businesses mandating a return to full-time office work for their staff, an organization is giving its team members the freedom to decide where they prefer to be based.

Similar to the global trend, Zillow’s staff had to shift to remote working conditions when the COVID-19 pandemic began. By fall 2020, the company’s leaders told employees That they wouldn’t have to come back to the office full-time. Consequently, many employees chose to move away, leading the firm to adopt a "CloudHQ" system: the organization regards its main base as being virtual rather than situated in a single physical place.

Around 84% of Zillow’s workforce of 6,900 employees work entirely remotely, implying they do not have ties to a fixed company headquarters and are not obligated to visit the office frequently. The remaining staff members consist of those in mortgage positions necessitating significant physical presence due to regulatory requirements, as well as local sales personnel expected to operate from designated branch offices.

Dan Spaulding, who serves as the chief people officer at Zillow, talked with gudangmovies21 Regarding the firm's strategy for managing remote work, specifically what a "Z-retreat" entails, and how frequently he visits the workplace (hint: quite rarely).

The interview has been revised and shortened for clearer understanding.

gudangmovies21: Can you explain Zillow’s CloudHQ method for managing their operations?

Dan Spaulding: CloudHQ truly began amid the uncertainty following "the post" initial phase of the pandemic, around fall 2020, as people weren’t sure when they would return to their previous ways of working. During this time, we started pondering questions like: 'While operating in a dispersed environment, we're acquiring considerable knowledge. How can we leverage these insights? What should we consider regarding employee preferences and requirements once the pandemic ends?' This reflection evolved into our CloudHQ strategy.

Our CloudHQ approach is centered around allowing employees to select their living and working locations based on what works best for them day-to-day. We also aim to be highly deliberate regarding our in-person gatherings.

In what ways has Zillow’s connection to the physical office evolved?

Before the pandemic, we operated 11 offices nationwide. To provide some context, 95% of our staff resided within driving distance of these locations. Currently, we maintain only six offices located in key areas such as Seattle, San Francisco, Irvine, and New York. Our workforce has since expanded to cover all 50 states.

We continue to utilize these offices every day for either of two situations. Firstly, many of our staff members prefer to visit the office quite often. There aren't strict rules regarding how much time they must spend at their desks. Secondly, there are "Z-retreats," strategic events organized centrally according to an annual schedule we create right from the start of each year. These retreats aim to gather team members and leadership when necessary, particularly during significant product releases requiring coordinated efforts among different departments. They take place at various locations around the nation, bringing employees together for numerous conferences.

Our inaugural complete year for "Z-retreats" was 2022, during which we reached vaccination rates that made us feel quite secure regarding health and safety concerns. Additionally, that same year saw significant pent-up demand as teams were extremely eager to reunite.

How have the outcomes been with your implementation of remote and hybrid working models?

We're now in our ninth quarter. outperforming residential real estate We’re now shipping products more quickly compared to our historical data. Employee turnover has decreased voluntarily. Additionally, staff feelings towards their work at Zillow have improved; they report greater pride and enthusiasm when working here across all measured areas.

Since transitioning to this approach, we haven't observed a decline in any of the productivity metrics we monitor.

How does this affect the process of attracting and keeping talented individuals?

I now receive four times as many applicants per open position compared to before Cloud HQ was implemented. If we consider this trend, it indicates that what we’re offering is attractive to potential employees.

We conduct internal surveys quarterly to gauge employee sentiments—94% of our staff feel honored to be part of Zillow, and 84% think they have adequate tools to perform their duties well.

Certainly! Here’s your revised version:
Some key aspects important to us revolve around inclusivity—84% of our team members say they can bring their true selves to work. Looking at Zillow’s recruitment stats before the pandemic, 41% of our staff consisted of women. Currently, this figure has risen to 46%, based on an increasing total number of employees. This represents significant change within our demographics. Having spent 25 years in human resources, I have never witnessed such shifts as those observed after transitioning to Cloud HQ. We think this sets us apart both in drawing talent to Zillow and keeping these individuals with us over extended periods.

What is your frequency of visiting the office?

I'd estimate that I visit the office about four to five times each month. However, these visits are not consecutive; they're spread out.

What mistakes do you believe organizations typically make regarding RTO?

Clearly, I cannot comment on what other businesses do; however, with our company, we consistently ask ourselves this: why revert to old methods when we have the opportunity to comprehend the issues our employees face in the present and progress towards tomorrow?

Struggling with asynchronous work, strategic meeting planning, and offering employee flexibility—these challenges might seem daunting at first glance. However, encouraging everyone within the organization—from top management down to entry-level staff—to approach their tasks and collaborations deliberately can yield significant advantages for all involved.

A frequent critique employees level against Return-to-Office policies is that these measures seem more focused on exerting control rather than boosting efficiency. How do you respond to such feedback?

At Zillow, we view ourselves as working with mature individuals whom we respect as such. It’s truly a special opportunity to offer this level of autonomy. As someone leading human resources here, my belief is that exceptional performance stems from the extra dedication our team members put forth. I feel confident saying that allowing staff to manage personal tasks—like running quick errands, coaching youth sports teams, or attending fitness classes at times suited to them—does not detract from these high-quality inputs. Our workforce grasps that they must be prepared to contribute additional time and energy whenever the business requires it in return for this freedom. Offering workers some added scheduling leeway can result in significantly greater output from those incremental efforts precisely when critical support is needed most.

The tale was initially showcased on gudangmovies21