A mere five years ago, virtually everyone worked onsite. Then, no one did.
The change was devastating for some industries. But those who could work from home quickly adjusted. What started as a temporary arrangement became the new norm.
The fact is, remote work is now truly woven into the fabric of the lives of millions—and its undoing will not be without consequence.
73% of Amazon workers are considering quitting after the company’s recent return-to-office (RTO) mandate. This may not be a knee-jerk reaction either. The same survey found that 80% of the Amazon professionals polled say they know a co-worker who’s currently looking for a new job, and 32% say they know someone who has already quit.
In October, Dell also issued an RTO order for all salespersons. The company gave employees only two days’ notice of this change, leaving everyone scrambling to make plans.
Ulterior motives?
There is speculation that some of these mandates might be management’s way of avoiding the cost and bad press associated with layoffs. In a study from earlier this year, approximately a quarter of leaders admitted that they hoped an RTO mandate would result in some employees leaving.
As the talent shortage eases and “the great resignation” seems to have come to an end, the balance of power is shifting back to the employer. The ManpowerGroup Employment Outlook Survey finds that 64% of employers believe that they now have the upper hand.
But they may not be as powerful as they believe. A survey by commercial real estate services company CBRE found that while roughly 80% of organizations have issued a return-to-office policy, only 17% are actively enforcing these policies.
Whatever your motives for issuing a return-to-office order, consider the pros and cons.
What are the benefits of RTO?
- Face-to-face communication. Instead of a string of messages or emails, a quick, spontaneous conversation can yield better results.
- Sense of community. Getting together in real life helps people build stronger bonds and enhance such skills as communication, leadership, teamwork, and technical prowess.
- Productivity. This seems to be more a perceived advantage than a true observation. Even though most metrics show that remote workers are at least as productive as in-office workers, some leaders still have an almost irrational fear that they’re slacking off.
- Rent/utilities. Millions of square feet of office space remain either unoccupied or underutilized—though the market has rebounded somewhat and now sits at nearly 90% of pre-pandemic levels.
- Benefits to the employee. Proximity bias is real. In one study, 96% of executives agreed that they’re more likely to notice the contributions of in-office employees. Some employees also are surprised to find that work-life balance is better when working onsite because there are clear boundaries between on- and off-hours.
What is the downside?
- Turnover. A Gartner report found that on average, employees at organizations that implemented an RTO mandate report lower intent to stay than those whose organizations did not. Those that did quit cited issues with work-life balance among the top five reasons for leaving. Most employers seem to be listening. Our recent research finds that improving work/life balance is the number one way that employers are tackling the retention question.
Women, millennials and high-performing employees are the groups most likely to leave in the face of an RTO mandate. - Productivity. Multiple studies have shown that remote workers are at least as productive as onsite workers. One example, a University of Chicago Press study found that work-from-home productivity for knowledge workers did not change when they moved from in-office to remote. In our global report, the Age of Adaptability, only 19% of execs rate in-person collaboration as an important driver of productivity.
- Morale. Requiring employees to come into the office is seen as a power play, and a sign that they’re not trusted, both of which can severely damage the employer/employee relationship.
How Important is Trust?
In a word, crucial. According to a study in Harvard Business Review, people at high-trust companies report 74% less stress, 106% more energy at work, 50% higher productivity, 13% fewer sick days, 76% more engagement, 29% more satisfaction with their lives, and 40% less burnout than people at low-trust companies.
And this is only what people are self-reporting. It’s likely that they may be underestimating their level of engagement and productivity.
Distrust can erode cooperation, squelch creativity and affect productivity; all of which are contributors to turnover. A PwC survey found that only 60% of employees felt highly trusted by their leaders, and 22% have left a position due to trust issues.
How to make the decision
- Look at your competitors. Are there any advantages in your business for an on-premises population? For example, the call center workplace, once fully onsite, has undergone radical changes in the last few years, both in the U.S. and globally. Because customer service representatives can easily complete their jobs from home, the norm has shifted to either fully remote or hybrid models.
- Operational considerations. Are you trying to utilize office space? This is a real concern, but don’t make long-term decisions based on a lease that may expire in a couple of years.
- Employee community. Poll your employees—find out their preferences. Are there a lot of families with small children? Digital nomads? Most studies show a strong preference for hybrid work. In our workforce trends report, The New Human Age, 64% of respondents said they would quit if required to return to the office full-time.
Is a better hybrid the answer?
Maybe you’ve tried the hybrid variety of scheduling, and it’s not going so well. Maybe all you need is a facelift. Here are some tips on how to make hybrid work for everyone:
- Consider a firm schedule. If people aren’t coming and going at predictable times, much of the advantage to collaboration is lost.
- The 3:2 model is popular, with employees working three days in the office and two at home. Another option, the bottom-up method lets each team decide which days they will come into the office (with two as a minimum). The downside of this is that it limits cross-functional collaboration.
- To conserve on office space, you may want to stagger scheduling. Different departments can work different days or hours, thereby sharing resources.
- Go slow. Announce the move at least two months in advance so that employees can make arrangements for child care, etc.
- Whatever you decide, communicate clearly that the decision to RTO is not based on a lack of trust.
Need help building or managing your workforce? Contact the workforce experts at Manpower.com
