As businesses navigate the complexities of the post-pandemic world, return-to-office (RTO) mandates have sparked intense debate. With an ongoing talent shortage reshaping the employment landscape, one critical question looms: Are RTO mandates compatible? Can employers still attract talent?
As companies push for in-person work, they’re finding it difficult to balance the demands of employees’ evolving expectations. Their preferences have largely changed since the rise of remote work.
In this article, we investigate the reasons behind the push for RTO mandates, look at how they impact workers and employers, and explore how an alternative approach looks in practice.
The push for return-to-office mandates
By the end of 2024, 90% of companies will have RTO mandates in place, with high-profile companies like Lyft, Amazon, and X (formerly Twitter) rigorously enforcing these policies. Here we look at the main reasons why.
In-person collaboration
Companies assert that collaboration is more effective and easier in a physical environment, where spontaneous interactions and face-to-face communication can flourish. Disney’s CEO, Bob Iger, has been a vocal proponent of this view, emphasizing that nothing replaces the creative synergy achieved by being together in an office. Meeting with different teams throughout the company reminded him of the value of in-person collaboration. He states, “Nothing can replace the ability to connect, observe, and create with peers that come from being physically together.”
Productivity
70% of business leaders feel pressured by executives to boost productivity, and many believe that employees are more productive when their managers are present.
Many employers state that the structure of an office environment allows for better oversight, quicker decision-making, and immediate access to resources. In the office, managers can monitor work progress directly, provide on-the-spot feedback, and quickly address issues as they arise. Employers often believe this hands-on approach leads to more efficient workflows and a stronger sense of accountability among employees.
Company culture
There’s also a fear among employers that remote work weakens company culture, with 25% of executives citing this as a top concern. Employers worry that the lack of in-person interactions will impede the development of social bonds, reducing the sense of belonging crucial for a strong team culture.
In a traditional office setting, employees naturally build relationships through casual conversations, shared experiences, and spontaneous collaboration. These interactions contribute to a cohesive work environment where employees feel connected to their colleagues and aligned with the company’s values and goals. Without these daily touchpoints, employers fear that remote work could lead to a fragmented workforce where employees feel isolated and disengaged.
The impact of return-to-office policies
No matter how well-intentioned the drive for RTO policies is, the impact is often negative. Not only do they exclude hidden talent such as family caregivers and those with disabilities, but they impact those who many expect to be able to work in office. Here’s how.
Long commutes once again
Without the burden of long commutes, employees can effortlessly integrate their personal lives with their jobs. This flexibility means so much to employees that many describe that it’s equally or more important than pay.
The reintroduction of long commutes is posing problems for employees since the average American worker spends about 27.6 minutes one-way commuting. This consumes valuable time and decreases the productivity that employers hope to boost. In contrast, remote work allows employees to spend 40% of their former commute time on work.
Out-of-sync work-life balance
About 43% of employees worry about how RTO policies will impact their ability to maintain a healthy work-life balance. Remote work’s flexibility allowed them to seamlessly integrate work with personal responsibilities and simply having time to themselves. This balance has been crucial for reducing stress and improving overall well-being.
The shift back to in-person work threatens to disrupt this balance, forcing employees to juggle commuting, office hours, and personal duties once again. The loss of flexibility may lead to increased burnout and dissatisfaction, prompting some employees to seek other employment options that better align with their lifestyle.
Loss in productivity
Employers hoped RTO mandates would boost productivity, but the reality proves different. In fact, 90% of remote workers feel more productive and less stressed working from home.
Office spaces can be distracting once they get busy, and some lack quiet spaces and adequate desk availability. In certain cases, employees are required to reserve a desk or co-work space which takes up extra time and mental energy. And while increased communication and a strong sense of culture are great, loud conversations and office politics often get in the way of work.
Lower employee engagement
RTO mandates have the potential to decrease employee engagement. Studies have shown that remote and hybrid workers are 37% more engaged than those who work exclusively in physical environments.
This has a knock-on effect on retention. 71% of HR executives report difficulty retaining employees after initiating RTO policies.
Are return-to-office mandates really the answer?
Given the substantial obstacles faced by both employees and employers, it’s worth questioning whether RTO policies are really feasible. Employees grapple with a lack of flexibility, while businesses struggle with lower retention, productivity, and engagement. Meanwhile, the talent shortage continues since businesses can only access local skills.
A distributed workforce offers access to a diverse and expansive talent pool while boosting employee engagement, productivity, and retention. But how can employers make remote hiring as seamless as possible? The answer is to use an Employer of Record (EOR) solution.
Multiplier helps businesses hire, onboard, and manage teams anywhere in the world. By streamlining the onboarding process, you can ensure new hires feel welcomed and integrated, regardless of their location. We then manage HR functions for you ensuring payroll in compliance with local laws and organizing benefits that employees love.
Make remote work work. Speak to Multiplier today.
