11 Sep The Hidden Costs of Mandated Return-to-Office Policies: A Wake-Up Call for Employers

As companies push for a return to pre-pandemic work norms, many are implementing mandated return-to-office (RTO) policies.  Some of this is driven by mayors and local governments creating pressure on businesses to bring employees back to help boost ailing downtowns and other business hubs. Some of it is driven by executives who, frankly, have a more traditional view of the workplace and feel that employees need to be within sight to know they are working.  Others have high real estate costs and empty buildings. No matter the reason, many employees are feeling that the promises during the height of the pandemic stating “remote work forever” are being broken. And, the recent data and emerging legal challenges suggest that these mandates may be doing more harm than good.  

While there may be some good reasons to bring people back to the office, let’s explore the unintended consequences of RTO mandates and why employers need to rethink their approach.

The Attrition Crisis

Time and time again, when we conduct organizational assessments, employees share that the RTO mandates are making them look elsewhere for employment. This is backed up by other recent studies that paint a stark picture of employee dissatisfaction with RTO mandates. According to Unispace’s “Returning for Good” report, nearly half (42%) of companies enforcing office returns experienced higher-than-anticipated employee attrition. This exodus of talent is not just a minor inconvenience—it’s a significant threat to organizational stability and productivity. To compound the issue, RTO mandates typically disproportionately affect historically underrepresented groups, and could undo any progress made in workplace inclusion efforts.

Recruitment Roadblocks

The impact of RTO mandates extends beyond current employees. Almost a third (29%) of companies with strict office return policies are struggling with recruitment, as noted in Unispace’s report. In an era where top talent prioritizes flexibility, rigid RTO policies are becoming a major deterrent for potential hires. We see this too with our clients where managers experience frustration about staffing levels and attracting talent, and also that their feedback often falls on deaf ears. 

Legal Landmines

Perhaps most alarmingly, some employees are now taking legal action against their employers over RTO mandates. Cases have emerged involving allegations of retaliation for unionization efforts, unlawful dismissal for criticizing office mandates, and failure to accommodate medical needs. Many of our clients are reporting increases in workplace accommodation requests. As we know from the #metoo movement, these legal challenges not only pose financial risks but can also severely damage a company’s reputation. 

The Trust Deficit

At the heart of the RTO mandate issue is a fundamental erosion of trust between employers and employees. When companies backtrack on previous commitments to flexible work or dismiss proven remote productivity, they risk breaking the psychological contract with their workforce.  Trust was already at low levels so this is an alarming trend. Ultimately, without trust it’s hard to get people to fully commit to their work – eroding productivity and company profitability.

A Path Forward

Instead of rigid mandates, I advise companies to consider:

1.Team-driven approaches to office returns.

This can be an effective way to foster cohesion and also solve any office space shortages. 

2.Focusing on collaboration and mentoring as reasons for in-office work,

This also means ensuring that people are actually in the office to collaborate and mentor. It makes no sense for people to come in on different days when in person interaction is the goal. 

3.Implementing truly flexible work policies that give employees choice

Obviously, this should be within reason. There are absolutely some jobs that need to be done in person and there are also many that can effectively be done remotely – as was proved during the pandemic. Even before the pandemic many companies have successfully been fully remote and global. 

4.Addressing equity concerns for both remote and in-office workers.

Dispersed teams face heightened risks of miscommunication and siloed work. Companies should invest in both technological solutions and communication protocols to bridge these gaps.

5.Continuously gathering and acting on employee feedback

Not just through culture or employee surveys, but through 1:1 conversations. Understanding what drives each employee on an individual basis is key to fostering true engagement. Managers should take the time to have one-on-one conversations with their team members to understand their needs and what inspires them. 

As companies navigate this evolving landscape, striking a delicate balance between empowering employees and maintaining productivity, accountability, and cohesion is key. By embracing flexibility and trusting employees to manage their work effectively, companies can avoid the pitfalls of RTO mandates while fostering a more engaged, productive, and loyal workforce.