Predicting the Future Location of Enforced Return-to-Office Policies by 2025
With the buzz around return-to-office mandates continuing, more organizations are announcing in-person requirements and maintaining flexible work models. Effective leaders focus on several aspects to make remote, hybrid, and in-person arrangements work in their organizations for the long-run.
Recent research by WTW shows that over two-thirds of worldwide companies have implemented a policy requiring employees to spend a minimal number of days in the office weekly. However, it's important to note that less than 5% of companies completely ban remote work. Most companies request employees to be on-site between one to four days a week, with three days being the most popular choice (28%). Over half of these organizations have no strict rules, allowing employees to choose their work-from-home days.
Regardless of the definition, 31% of employees spend 80% of their time on-site, 19% are remote 80% of the time, and 50% are hybrid. It's important to note that these trends weren't exclusively caused by the COVID-19 pandemic. Prior to the virus, approximately 10% of the global workforce, or 350 million people, worked remotely. It surged during the pandemic, with estimates of half to two-thirds of the workforce in various regions working from home.
The trend towards increased in-office presence is driven by companies believing that face-to-face interactions boost team engagement (76%), strengthen corporate culture (71%), and improve collective productivity (63%). Although remote work provides benefits such as role attraction and retention (82%), better work-life balance (80%), and employee retention (68%), it also faces resistance due to concerns about an uptick in attrition.
Companies tend to adopt a gradual approach to in-office presence, with only a quarter improving office facilities to entice workers to come back. Organizations acknowledge the need to consider their employees' needs to prevent turnover. Flexible work arrangements also allow for better time management, personal productivity, and financial savings on commutes and dependent care for employees.
Despite the push to return employees to offices, the desire for remote work has increased. According to WTW's Global Benefits Attitudes Survey, 53% of employees who can work remotely would change jobs if mandated to work full-time in an office. Given that one in three executives would also leave their employer if forced to return on-site, it's essential for companies to consider implementing flexible work arrangements.
Effective leaders take the following actions as employees return to offices:
- Remain Flexible: Leaders assess different work arrangements, technologies, and processes to determine what's right for their workforce, offering flexibility and choice whenever possible.
- Listen to Employees and Prioritize Wellbeing: Companies who conduct employee listening activities are more likely to identify changes in employee preferences or assess the impact of changing work conditions. Effective leaders meet employees where they are, focusing on wellbeing in all work arrangements.
- Make On-Site Work Appealing: Leaders create a more collaborative, engaging, and productive environment to give employees a reason to come to the workplace rather than forcing them to return.
- Redesign Rewards Programs: Companies should redesign pay, benefits, and wellbeing programs to support the changing mix of on-site, hybrid, and remote workers.
- Support Managers: First-line managers are crucial for engaging employees, and the changing environment poses challenges. Leaders help them develop the skills and strategies to manage change and create meaningful career opportunities and compelling work environments regardless of where or when employees are working.
Effective leaders will continue to balance employee preferences, productivity, and business outcomes in this rapidly changing environment.
Sources:1. "Return to Office: Why the Hybrid Work Model Is Here to Stay", Forbes (December 6, 2022)2. "Return to Office Trends: What 90% of Companies Are Doing", The Workforce Institute at Kronos (March 31, 2022)3. "The New Normal: Remote Work and What It Means for Employee Wellbeing", The Workforce Institute at Kronos (March 15, 2022)4. "Managing the Return to Workplace: Employee Wellbeing, Technology, and More", HBR (June 16, 2021)5. "Redefining Work in a New Era", WTW (February 8, 2023)
- Organizations that adhere to strict RTO mandates are now integrating flexible work models to accommodate employee preferences, recognizing the importance of striking a balance between return to office and remote work.
- The future of work is shaped by the ongoing debate around RTO mandates and the need to address skill shortages, with virtual work and hybrid models becoming increasingly popular due to their cost-effectiveness and potential to improve employee satisfaction.
- Amidst the push for RTO, companies are acknowledging the advantages of remote work, such as improved work-life balance and opportunities for role attraction and retention, while also considering the challenges, like potential attrition, that come with this setup.
- As effectiveness in the workplace becomes more intertwined with technology, RTO requirements often pose challenges for organizations, necessitating the need to invest in upgrading digital tools and infrastructure to support seamless hybrid and remote work arrangements.
- With a shift towards hybrid work, leaders need to redesign their compensation structures, taking into account varying requirements for pay and benefits, to keep employees motivated and engaged, whether they're working from a physical office, remotely, or in a hybrid setup.
- The implementation of flexible work arrangements can help address tunnel vision and stagnancy in the workplace, as it encourages employees to develop diverse skills and navigate new virtual collaboration techniques, ultimately bolstering the overall performance and success of the organization.
- Ultimately, the success of RTO mandates and hybrid work models depends on a thorough assessment of an organization's goals, existing technologies, and human resources, ensuring that both employees and the company can flourish in this fast-paced and ever-changing work environment.
