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Well yeah, that’s what’s happening. That’s what sparked this debate.
People ARE leaving their jobs for other organizations that allow work from home, getting paid more in some instances too.
If a competing business can’t offer more than what the same work from home jobs are offering for the same position, work from home will win every time. Just like you said, it’s business. Supply and demand, in a tidy work offer contract based on what is agreed upon.