Average developer salaries for my area are between 60-100k, so if Microsoft can offer 120k+, a lot of (great) devs in my area would probably take that. Local devs get better wages, and companies save some money.
However, they could also outsource to India for even cheaper results, but who knows how well that will go.
So, the question is, will it work any better in Michigan? Quite possibly; the timezone and language differences are much less. Plus, if you worked for Microsoft or Google, you probably wouldn't try to also work for 2-3 other employers at the same time. But, if the issue was simply that remote work impedes good communication, the results will be similar.
My guess, it will sometimes work. I guess we'll find out soon.
I recently quit my job so I could stop being a manager and return to IC, exactly because of this. In a WFH climate managers have to work twice as hard to stay competitive in the political games.
A "productive" manager that slows down the team isn't an effective manager at all, no matter how hard he or she is working.
The manager might be able to scapegoat a poor team member or two when poor results become evident, but sooner or later, he or she will have to pay the piper.
That forget the leadership on top of that leadership though!
Where I work, before covid they were working on expanding quite a bit the amount of office space but as far as I understands, all theses plans got cancelled and instead we won't have permanent desk and instead we will works remotely 2-3 days a week. That's coming from a company that had literally no remote works before Covid (except while travelling).
It represents so much money to have less office space, as long as the manager doesn't play too much with their staff efficiency during Covid, it will just make sense to save money there.
From my perspective, this is worst of all possible scenarios. Employees are still shackled to an expensive city, but now they must pay for housing that supports a dedicated "home office" space (e.g., a larger apartment with an extra room, or carving out part of their living room/bedroom). This is just shifting the cost burden of real estate from the company onto the employees.
For example, in Austin, these days anything located within a half hour of downtown tends to be horribly expensive. But just go a little beyond that and house/real estate prices drop precipitously. You're going to see a boom in these exurbs as these "mostly remote" jobs increase.
But most of my coworkers seem eager to return to the office. They miss the office environment, the perks and catered meals, and the socialization. And the managers, who subsist on meetings and in-person interaction, seem even more anxious to get everyone back to their desks. The powers-that-be probably have personal motivations for keeping everyone here as well (e.g., many millions of dollars tied up in their homes, which could lose significant value if the housing market deflates).
All this is to say, I'm skeptical that workers won't be called back into the office as soon as leadership gets the chance.