How The “Return to Office or Else” Mandates Are Causing Cracks on Companies’ Success in 2024

An increasing number of companies are adopting strict return-to-office policies. This past week, Boeing and UPS required employees to return to the office for five days with exceptions. Boeing is grappling with a widespread crisis and a decline in confidence in its business quality management at a crucial level. Similarly, UPS introduced its return-to-office directive when it terminated 12,000 corporate employees.

Although numerous companies have adopted a hybrid work model and are not mandating full-time office attendance, they have implemented stricter return-to-office (RTO) policies for the days employees must be present in person. IBM, for instance, has communicated to managers that they must be physically present at an office or client site for at least three days per week or face termination, irrespective of their relocation during the pandemic.

According to a poll by Resume Builder in December, which surveyed 800 business leaders, 8 out of 10 companies plan to monitor employee office attendance in 2024. Additionally, a staggering 95% of these companies indicated that non-compliance could result in consequences for employees, including potential risks to their jobs, bonuses, and salaries.

However, signs of cracks are sometimes emerging with the stick approach, as employees leave or become disengaged. Some dissatisfied employees resort to behaviors like quiet quitting or coffee badging, where they merely show up to swipe in, briefly present themselves, and grab a cup of coffee.

Here are the key insights companies should be aware of regarding the current state of Return-to-Office (RTO) policies:

A Significant Number of Workers Still Disregard RTO Mandates

Many companies are talking tough about enforcing return to office or else policies, but they are struggling to follow through. Henry Nothhaft, Jr., president of EssentialDx, says enforcement lacks effectiveness because many workers ignore the policy, and some are still productive. Also, cracking down on lower-level employees is challenging when higher-ups do not comply. Betsy Henning, managing partner of Finn Partners, highlights the importance of leaders being present in the office to support the policy's rationale. While some businesses use strict in-office rules to weed out underperformers, others are gathering data, waiting, and being reluctant to take a hard stance due to concerns about losing valuable employees.

Employees Still Desire Flexibility in Work Arrangements

While there are valid reasons companies want workers back in the office, the productivity debate continues. Some studies show high productivity levels during remote or hybrid work, while others report boosts when employees return to the office.

In-person collaboration is often more effective, but employees become frustrated if they are mandated to return to the office and spend their days in virtual meetings. Dave Wilkin, founder of Ten Thousand Coffees, emphasizes the need for meaningful reasons to come to the office, such as brainstorming sessions and in-person mentorship.

Flexibility remains a crucial priority for employees. A FlexJobs survey revealed that over half of respondents know someone who quit or plans to leave due to return-to-office mandates. Additionally, most professionals are willing to accept lower pay for remote work opportunities.

According to Jennifer Dulski, CEO and founder of Rising Team, people will only work so much and will find ways to circumvent any enforcement measures imposed by employers.

Repercussions on Inflexibility

Jennifer Dulski is aware of several recently leaving their jobs due to inflexibility with work arrangements. She believes companies offering more flexibility will attract top talent because skilled workers always have options.

On the other hand, several companies, including Amazon, faced challenges after implementing stricter in-office policies. In May, Amazon mandated that employees work from physical offices at least three days a week, leading to a walkout at its Seattle headquarters and an internal petition urging CEO Andy Jassy to reconsider. Despite this, Amazon has observed increased energy, connection, and collaboration with more employees in the office, according to a spokesperson.

Some Companies are Maintaining Their Strict In-Office Policies

Davis Polk & Wardwell has seen minimal staff turnover since implementing its policy in September. Their policy requires employees to be in the office from Monday to Thursday but allows remote work for 16 days a year and entire office remote weeks like Thanksgiving and the last week of December. Other law firms have adopted similar policies of three or four days a week in the office.

According to Neil Barr, managing partner at Davis Polk & Wardwell, most of their colleagues comply with the policy, and they believe the business is benefiting as a result.

Ensure Other Policies are Employee-Friendly

Although many value flexible work arrangements, recent surveys indicate they rank lower on job-seekers' priority lists than expected. According to KeyAnna Schmiedl, chief human experience officer at Workhuman, job seekers prioritize work-life balance, recognition and rewards, and company culture over work location.

This insight highlights the importance of companies focusing on keeping employees satisfied in various ways. According to Schmiedl, issues arising during the return-to-office process may be less about commuting and more about the office environment and company culture.